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Free CIPS L4M5 Exam Questions (page: 9)

Page 9 of 70
PDF with 275 Questions

Which of the following would be considered appropriate influencing techniques in contract negotiation? Select TWO that apply.

  1. Ratification
  2. Rule ethics
  3. Framing and re-framing
  4. Validation
  5. Anchoring

Answer(s): C,E

Explanation:

Framing and re-framing (C) and Anchoring (E) are powerful influencing techniques:

Framing and re-framing (C): This technique shapes how information is presented to make specific aspects more compelling or relevant.
Anchoring (E): Anchoring sets an initial reference point, which influences how subsequent information is perceived.
These techniques help negotiators control the flow and focus of discussions, aligning with CIPS recommendations for strategic influence in negotiations.



When might a buyer decide to use a distributive approach to a negotiation with a supplier?

  1. When they are dependent on that supplier in the future
  2. When there are various suppliers in the market producing a similar product
  3. When procuring an item that is not strategic to the organisation
  4. When a working relationship is important in the future

Answer(s): B

Explanation:

A distributive approach is appropriate when multiple suppliers offer similar products, as this competitive environment allows the buyer to focus on maximizing their position rather than building long-term partnerships. CIPS suggests that a distributive or competitive approach is best used in non- critical purchases or when supplier dependency is low, as is the case here.



Mike is a junior buyer who has been working for a manufacturing organisation for two years, specializing in purchasing research. Over this time, he has built good relationships within his team and with other departments.
Which of the following sources of power is Mike most likely to possess?

  1. Referent
  2. Reward
  3. Position
  4. Coercive

Answer(s): A

Explanation:

Referent power is based on personal relationships and the respect or admiration one earns within an organization. Given Mike's positive relationships and his rapport with team members and other departments, he is most likely to have referent power. This power type is influential in negotiation as people are more willing to work with someone they respect, as outlined in CIPS power dynamics in negotiation.



A procurement manager is considering negotiating variable pricing for a contract duration of 12 months. Would this be the right thing to do?

  1. No, because this will not enhance the buyer-supplier relationship
  2. No, because it will prove difficult to budget for the duration of the contract and provide financial uncertainty
  3. Yes, because this method of pricing will always provide value for money
  4. Yes, because it will build relationships with the supplier and provide a stronger platform for the next contract renewal

Answer(s): B

Explanation:

Variable pricing can lead to budgeting challenges and financial uncertainty over a 12-month period.
While variable pricing may allow flexibility, it complicates financial planning and forecasting. For predictable budgeting and reduced financial risk, fixed pricing is typically preferred in such contract durations, aligning with CIPS recommendations on pricing models in contract management.



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