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| Certification Vendor: | CIPS |
|---|---|
| Exam Name: | Commercial Negotiation |
| Exam Number: | L4M5 |
| Available Languages: | English |
| Exam Format: | Multiple-choice questions, Computer-based objective test |
| Certificate Validity Period: | CIPS qualifications do not typically expire once awarded |
| Exam Duration: | 120 minutes |
| Passing Score: | 70% (typical CIPS objective test pass mark) |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Real Exam Qty: | 60 (typical objective test format) |
| Recommended Training: | CIPS Official Study Resources CIPS Learning Support |
| Exam Registration: | CIPS Qualifications Information Find a CIPS Exam Centre / Booking |
| Sample Questions: | CIPS L4M5 Sample Questions |
| Exam Way: | Computer-based exam (online proctored or test centre depending on provider) |
| Pre Condition: | No formal prerequisites, but CIPS Level 3 or equivalent knowledge is recommended as part of progression to Level 4 Diploma. |
| Official Syllabus URL: | https://www.cips.org/qualifications-and-training/level-4-diploma-in-procurement-and-supply/ |
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To be eligible for the CIPS L4M5 certification program, individuals must have completed the CIPS L4M4 (Commercial Relationships) certification program or have equivalent experience in procurement and supply chain management. The CIPS L4M5 certification exam is a rigorous assessment of a candidate's knowledge and skills in commercial negotiation. L4M5 Exam consists of multiple-choice questions and case studies that test a candidate's ability to apply their knowledge and skills in real-world scenarios.
NEW QUESTION # 297
Which of the following are examples of push techniques in commercial negotiations? Select TWO that apply.
Answer: D,E
Explanation:
:
There are two major persuasion methods: 'push' and 'pull'.
Persuasion can be defined as encouraging someone to do something that you want them to do for you.
Persuasion is reasoning with someone so that they will believe or do something they might not otherwise do.
Persuasion can be considered as 'pushing' on TOP so that they can accept the change in attitude or behaviour as a result of your actions.
Influence is the ability to affect the manner of thinking of another. Influence can be considered as pulling on TOP so that you achieve the same result, but TOP feels they have changed their attitude or behaviour as a result of their reflection and thinking, and not your direct actions.
There are 5 options in this question:
'Threat of punishment, costs and damage': The influencer tries to 'push' the other party to act as he/she wants by using force. This method is effective but short-lived. The influencer also risks to developing reputation for being heavy handed and dictatorial.
'Argument based on information, logic and reason': The influencer uses logic and reasons to persuade the other party. This is also known as 'Persuasive Reasoning' (Push)
'Using language and imagery to 'paint a picture others can see'': The influencer seeks to influence another by understanding the other's emotions, and stimulating that party's imagination to visualise the desired future goal of the influencer. This is also known as 'visionary (pull)'
'Working together to define the problem, the goals and the best solution': In this technique, the person seeking to influence another involves the other party in the decision making process. This is known as 'collaborative (pull)'
'Listening to, involving and supporting others': In this technique, the person seeking to influence another tries to discover the other party's emotion and aims at mutual understanding. This is also a collaborative approach.
NEW QUESTION # 298
Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?
Answer: A
NEW QUESTION # 299
Which of the following types of relationship would possibly lead to a distributive negotiation?
Answer: A
NEW QUESTION # 300
Which of the following are the most typical characteristics of integrative approach to negotiation? Select TWO that apply.
Answer: A,E
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 thepie' 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.
Table Description automatically generated
LO 1, AC 1.2
NEW QUESTION # 301
Which of the following are examples of variable costs?
Building and site rent
Annual insurance premium
Raw materials expenditure
Delivery costs for materials
Answer: A
Explanation:
Raw materials expenditure (3) and delivery costs for materials (4) are variable costs as they fluctuate with production levels. Variable costs vary directly with the volume of production, unlike fixed costs such as rent or insurance, in line with CIPS's classifications of cost types in procurement.
NEW QUESTION # 302
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