CPN CPN Negotiation Tactics & Concession Management 1 — Questions and Answers
Question 1: What is a 'concession' in the context of professional negotiation?
- A demand made to pressure the other party
- A compromise where one party gives up something to move toward agreement (Correct answer)
- A final offer that cannot be changed
- A tactical walkout from negotiations
Correct answer: A compromise where one party gives up something to move toward agreement
A concession is when one party gives up something of value to bridge the gap and move toward a mutually acceptable agreement.
Question 2: The 'good cop/bad cop' negotiation tactic involves:
- Two negotiators alternating aggressive and sympathetic roles to pressure the other side (Correct answer)
- Alternating between aggressive and passive stances by a single negotiator
- Using legal and informal means simultaneously
- Having one negotiator handle offers while another handles logistics
Correct answer: Two negotiators alternating aggressive and sympathetic roles to pressure the other side
Good cop/bad cop uses two negotiators—one harsh and one sympathetic—to psychologically pressure the other side into conceding.
Question 3: What does 'logrolling' mean in negotiation?
- Exchanging concessions on different issues based on each party's priorities (Correct answer)
- Repeatedly making the same offer until it is accepted
- Making concessions only on price
- Delaying negotiation to gain a time advantage
Correct answer: Exchanging concessions on different issues based on each party's priorities
Logrolling involves trading concessions on different issues so each party gains on what matters most to them.
Question 4: The 'nibble' tactic in negotiation refers to:
- Making small additional requests after the main deal has been agreed (Correct answer)
- Gradually reducing your opening offer in small increments
- Testing the other party with minor concessions early on
- Asking for clarification on minor contract terms
Correct answer: Making small additional requests after the main deal has been agreed
Nibbling involves requesting small extras after the main agreement is reached, exploiting the other party's reluctance to reopen the deal.
Question 5: What is the principle of 'reciprocity' in concession-making?
- When one party makes a concession, the other feels socially obligated to reciprocate (Correct answer)
- Both parties must make exactly equal concessions throughout the negotiation
- All concessions must be made simultaneously to be valid
- The first party to concede automatically wins the negotiation
Correct answer: When one party makes a concession, the other feels socially obligated to reciprocate
The reciprocity principle holds that people feel socially obligated to return favors, making well-timed concessions a powerful influence tool.
Question 6: Which concession strategy signals to the other party that you are approaching your limit?
- Decremental concession strategy (progressively smaller concessions) (Correct answer)
- Incremental concession strategy (progressively larger concessions)
- Flat concession strategy (equal-sized concessions throughout)
- Escalating concession strategy (increasing concession sizes)
Correct answer: Decremental concession strategy (progressively smaller concessions)
A decremental concession strategy uses shrinking concession sizes to signal that you are nearing your walk-away point.
What is a 'concession' in the context of professional negotiation?