CPP Price Negotiation & Deal Management

Question 1

What does BATNA stand for in price negotiation?

Accepted Answer

Best Alternative to a Negotiated Agreement

Answer

Basic Approach to Negotiating Agreement Amounts

Answer

Baseline Adjustment to Net Agreement

Answer

Budget Allocation for Total Negotiated Amounts

Question 2

Which negotiation tactic involves stating an extreme initial price in order to influence the final negotiated outcome?

Accepted Answer

Anchoring

Answer

Nibbling

Answer

Bracketing

Answer

Mirroring

Question 3

What is the 'zone of possible agreement' (ZOPA) in a negotiation?

Accepted Answer

The overlap between the seller's minimum acceptable price and the buyer's maximum acceptable price

Answer

The range of prices a seller is willing to accept under any circumstance

Answer

The geographic territory where a pricing agreement can be legally enforced

Answer

The time window during which a price offer remains valid

Question 4

In deal management, 'price leakage' refers to:

Accepted Answer

Revenue lost through unauthorized discounts, exceptions, and off-invoice costs

Answer

Unauthorized disclosure of pricing strategies to competitors

Answer

The gradual erosion of list prices caused by inflation

Answer

Price reductions mandated by government regulation

Question 5

What is a 'walk-away price' in a negotiation?

Accepted Answer

The threshold price beyond which a party will not finalize a deal

Answer

A special discount offered when a customer threatens to leave

Answer

The list price before any negotiation begins

Answer

A price offered when prematurely exiting a negotiation

Question 6

Which negotiation strategy focuses on creating additional value for both parties rather than dividing a fixed amount?

Accepted Answer

Integrative negotiation

Answer

Distributive negotiation

Answer

Positional bargaining

Answer

Competitive bidding

Question 7

What is 'nibbling' in the context of price negotiation?

Accepted Answer

Requesting additional concessions after the main deal appears to be closed

Answer

Making small concessions early in a negotiation to build rapport

Answer

Gradually reducing an offer price across multiple negotiation sessions

Answer

Testing buyer price sensitivity with incremental price increases