QUESTION: 81

Which of the following is an objective of proposing phase?

Check hypothesis and assumptions
Trade concessions
Create atmosphere conducive to agreement
Start making tentative offers

Answer(s): D

Explanation:

In the study guide, CIPS lists 5 stages of an negotiation:
The opening phase: confirm understanding and get the issues on the table. At this stage, both parties should check agenda, authority and create atmosphere conducive to agreement The testing phase is an information gathering stage where the hypothesis and assumptions you have made in the planning stage can be tested and confirmed or disconfirmed The proposing phase: Both sides may start making tentative proposals regarding their offering. The bargaining phase: Both parties trade concessions; the preliminary stages are over and proposals move from being tentative and general to being more definite and specific. The agreement and closing phase: both parties should seek agreement or if TOP does not have the final authority, some sort of acknowledgement of what key terms are should be sought.

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QUESTION: 82

Should a buyer use closed questions in a negotiation?

Yes, because closed questions help to reconfirm certain facts
Yes, because they urge the supplier to provide more detailed Explanation:
No, the buyer should maximise the use of open questions
No, supplier will consider closed questions as provocation

Answer(s): A

Explanation:

Asking questions the right way is both an art and a science. Ask the question the wrong way, and the other negotiator might act like a turtle, becoming defensive and withdrawing into their shell. Ask the question the right way, and the other negotiator might "spill the beans.".
Closed Questions: How and when to use them?
Closed questions are those that require a short and focused answer, and are especially helpful in the beginning stages of the negotiation to encourage interaction. They can be used to clarify a point, or to reconfirm certain facts. For example, you can use a closed question to confirm the amount of units the company can produce in a week, or to clarify that what they are really saying is that they don't feel comfortable outsourcing their accounts to India. Most closed questions only require a simple "yes" or "no" response, so there really isn't much room for misinterpretation great for finding out where both you and they stand.

Reference:

CIPS study guide page 169
What Questions Can We Ask In Negotiations?

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QUESTION: 83

Which of the following are most likely to be macro factors that may influence the balance of power in commercial negotiation? Select THREE that apply.

Economic growth rates
Disruptive technologies
Purchasing spend volume
Sustainability of natural resources
Intensity of competition in a industry
Number of substitute products or services

Answer(s): A,B,D

Explanation:

All one-to-one commercial negotiations between a specific purchaser and a specific supplier take place within an industrial market and a larger business environment characterised by multiple forces which both parties typically have little control over. STEEPLE framework highlights the 6 main external influences on a business:

LO 1, AC 1.3

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QUESTION: 84

Which of the following types of questions should be used most often in the proposing phase?

Hypothetical questions
Probing questions
Closed questions
Open questions

Answer(s): A

Explanation:

At the proposing phase either side may start making tentative proposals regarding their offering. In the case of negotiation where TOP has already submitted a tender or proposal, this stage may provide an opportunity for them to make proposals to improve on their initial offers in general or in areas highlighted by the buying side in advance.
The word 'if' is very useful at this stage and allows you to test tentative proposals without committing yourself. Skilled negotiators use language very carefully. The questions with 'if' are hypothetical ones.
LO 3, AC 3.1

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QUESTION: 81

Explanation:

QUESTION: 82

Explanation:

Reference:

QUESTION: 83

Explanation:

QUESTION: 84

Explanation: