CPN CPN Negotiation Tactics & Concession Management 2 — Questions and Answers
Question 1: Why does the 'deadline' tactic work as a negotiation tool?
- Time pressure creates urgency that can force the other party into concessions (Correct answer)
- Legal deadlines always apply automatically to commercial negotiations
- Deadlines eliminate the need for any concessions from either side
- Both parties must mutually agree to a deadline before it is effective
Correct answer: Time pressure creates urgency that can force the other party into concessions
Artificial or real deadlines create time pressure that can cause negotiators to concede more than they would under relaxed conditions.
Question 2: What is a 'highball/lowball' opening offer in negotiation?
- An extreme opening offer designed to anchor the negotiation toward your desired outcome (Correct answer)
- A moderate offer that signals genuine willingness to compromise
- An offer made in bad faith to derail negotiations
- The final take-it-or-leave-it offer in a negotiation
Correct answer: An extreme opening offer designed to anchor the negotiation toward your desired outcome
Highball (seller) or lowball (buyer) openings anchor the negotiation at an extreme point, pulling the final settlement toward it.
Question 3: When is making the first offer advantageous in a negotiation?
- When you have good information about the zone of possible agreement and can set a favorable anchor (Correct answer)
- Always, because it unconditionally demonstrates confidence and control
- Never, because first offers always reveal too much about your position
- Only after the other party has made at least three offers
Correct answer: When you have good information about the zone of possible agreement and can set a favorable anchor
Making the first offer is advantageous when you are well-informed, as the anchor you set disproportionately influences the final outcome.
Question 4: What is 'strategic patience' as a negotiation tactic?
- Deliberately slowing the pace of negotiation to create discomfort and outlast the other party (Correct answer)
- Waiting passively for the other party to make all concessions unilaterally
- Using silence only during the opening phase of a negotiation
- Showing patience exclusively when negotiating with international counterparts
Correct answer: Deliberately slowing the pace of negotiation to create discomfort and outlast the other party
Strategic patience involves deliberately slowing the pace to create discomfort, pressuring the other side into conceding to move things forward.
Question 5: What is the primary risk of the 'take it or leave it' (TIOLI) tactic?
- It can end negotiations entirely if the other party rejects the final position (Correct answer)
- It always signals weakness to experienced negotiators
- It is only legally permissible in certain contract types
- It removes all leverage from the party using the tactic
Correct answer: It can end negotiations entirely if the other party rejects the final position
TIOLI is powerful for firmness but risks a negotiation breakdown if the other party refuses to accept a non-negotiable position.
Question 6: What is 'bracketing' in negotiation strategy?
- Making an offer so that the midpoint between your offer and the other party's position equals your target outcome (Correct answer)
- Placing strict time limits on all offers exchanged
- Grouping unrelated issues into a single package to trade
- Setting minimum and maximum concession limits before negotiations begin
Correct answer: Making an offer so that the midpoint between your offer and the other party's position equals your target outcome
Bracketing means calculating your offer so that splitting the difference with the other side lands you exactly at your target outcome.
CPN CPN Negotiation Tactics & Concession Management 2
Why does the 'deadline' tactic work as a negotiation tool?