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CIPS Commercial Negotiation Sample Questions (Q102-Q107):

NEW QUESTION # 102
Which of the following are ways of developing rapport when undertaking a negotiation?

A. 2 and 4 only (Using probing questions and Actively showing empathy)
B. 1 and 3 only (Engaging in assertive communication and Engaging in active listening)
C. 1 and 2 only (Engaging in assertive communication and Using probing questions)
D. 3 and 4 only (Engaging in active listening and Actively showing empathy)

Answer: D

Explanation:
Reference: CIPS L4M5 Study Guide, Section 3.2 - The Negotiation Process

NEW QUESTION # 103
When is the best time in procurement process in which procurement should get involved so that the cost-saving opportunities are the greatest?

A. Post-tender stage
B. Market consult stage
C. Post-contract stage
D. Specification stage

Answer: D

Explanation:
Explanation
The earlier procurement get involved in the procurement processes, the better. If procurement are involved in design at the specification stage they can feed in prices and costs to designer so they know the likely budget implication of choices made. Sending in a procurement team to negotiate at or close to the end ofthe procurement process effectively ties their hands and limits their negotiation leverage. This is illustrated in the graph below:
Chart Description automatically generated

LO 2, AC 2.1

NEW QUESTION # 104
Which of the following will positively affect reputational strength of an organisation? Select TWO that apply.

A. Great gap between reputation and reality
B. Strong customer focus
C. Adopting out-of-date technology
D. Weak internal coordination
E. High ethical standards

Answer: B,E

Explanation:
In a globalised commercial world characterised by dynamic market and multiple companies competing for business, a positive corporate reputation can be an enormous asset. Reputational strength in one organisation might be based on some or all of the following characteristics:
- Quality of products or services
- Low cost/high value for money
- High ethical standards
- Reliability
- Cutting-edge technology
- Strong customer focus
- Engineering excellence
LO 1, AC 1.4

NEW QUESTION # 105
Which of the following are the most typical characteristics of integrative approach to negotiation? Select TWO that apply.

A. Claiming value
B. Positional-based
C. Creating more value
D. Interest-based
E. Short-term wins

Answer: C,D

Explanation:
Integrative approach to negotiation used when the interested parties are attempting to create more of something of value to share, also known as collaborative approach or win-win. Integrative, interest-based negotiation can facilitate constructive, positive relationship and establishes contracts between parties on a foundation of goodwill. In integrative bargaining, both parties seek to 'expand the pie' by creating more value for both the buyer and the seller. Integrative negotiation 'shares the pie' and is interest rather than positional based.
In distributive bargaining, the focus is on claiming value and getting as much of the pie as parties can.
LO 1, AC 1.2

NEW QUESTION # 106
Which type of power is considered the opposite of coercive power?

A. Informational power
B. Expert power
C. Referent power
D. Reward power

Answer: D

Explanation:
Explanation
The coercive power comes from the belief that a person can punishothers for non-compliance. It can be considered as opposite to reward power, which results from one person's ability to compensate or reward another for compliance.
LO 1, AC 1.3

NEW QUESTION # 107
......

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