Sales Negotiation 2 — Questions and Answers
Question 1: What is the 'anchoring' technique in negotiation?
- Refusing to make the first offer
- Setting an initial reference point that influences the entire negotiation (Correct answer)
- Anchoring your position to the competitor's price
- Waiting for the other party to reveal their budget first
Correct answer: Setting an initial reference point that influences the entire negotiation
Anchoring means making the first offer to set a reference point that psychologically biases the negotiation in your favor.
Question 2: In a salary negotiation, a candidate states 'I'm looking for $90,000–$100,000.' The employer responds with $85,000. What should the candidate do next?
- Immediately accept since it's close
- Restate the lower bound of their range ($90,000) and justify it with market data (Correct answer)
- Walk away from the negotiation
- Ask the employer to match the highest competing offer
Correct answer: Restate the lower bound of their range ($90,000) and justify it with market data
Restating the lower bound of the original range keeps the anchor in play and signals the candidate's minimum acceptable offer.
Question 3: Which of the following best describes 'BATNA' in negotiation?
- Best Available Terms Negotiated by Agreement
- Best Alternative to a Negotiated Agreement (Correct answer)
- Baseline Anchor for Total Negotiation Advantage
- Budget Allocation for Tactical Negotiation Actions
Correct answer: Best Alternative to a Negotiated Agreement
BATNA (Best Alternative to a Negotiated Agreement) is the course of action you'll take if the current negotiation fails.
Question 4: A prospect says, 'Your price is too high.' What is the most effective response?
- Immediately offer a discount
- Ask 'Compared to what?' to understand their benchmark (Correct answer)
- Tell them competitors charge more
- Explain all the features at length
Correct answer: Ask 'Compared to what?' to understand their benchmark
Asking 'Compared to what?' uncovers whether price is a real objection or a negotiating tactic.
Question 5: What does 'logrolling' mean in a sales negotiation?
- Delaying a decision repeatedly
- Trading concessions on issues of different priority to both parties (Correct answer)
- Presenting a rolling list of demands
- Escalating the deal to senior management
Correct answer: Trading concessions on issues of different priority to both parties
Logrolling involves trading concessions where each party gives up something they value less to gain something they value more.
Question 6: Which negotiation tactic involves deliberately leaving a meeting to create pressure?
- Mirroring
- Good cop/bad cop
- The walkaway (Correct answer)
- Bracketing
Correct answer: The walkaway
The walkaway tactic signals willingness to end negotiations, which can pressure the other party into making concessions.
Question 7: In negotiation, what is 'the zone of possible agreement' (ZOPA)?
- The list of topics both parties agree to discuss
- The overlap between each party's reservation price where a deal can be made (Correct answer)
- A pre-negotiation agenda document
- The geographic region where the deal is enforceable
Correct answer: The overlap between each party's reservation price where a deal can be made
ZOPA is the range between buyer's maximum willingness to pay and seller's minimum acceptable price where a deal is feasible.
Sales Negotiation 2
What is the 'anchoring' technique in negotiation?