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| Section | Objectives |
|---|
| Negotiation strategies and tactics | - Approaches to negotiation
- 1. Tactical behaviours and influence techniques
- 2. Collaborative and competitive strategies
- 3. Concession strategies
|
| Power, ethics and communication in negotiation | - Influencing factors
- 1. Communication and interpersonal skills
- 2. Ethical considerations in negotiation
- 3. Sources of negotiation power
|
| Negotiation fundamentals | - Principles of commercial negotiation
- 1. Types of negotiation (distributive vs integrative)
- 2. Definition and purpose of negotiation
|
| Negotiation planning and preparation | - Preparation techniques
- 1. Setting objectives and targets
- 2. Information gathering and analysis
- 3. BATNA and reservation points
|
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CIPS Commercial Negotiation Sample Questions (Q210-Q215):
NEW QUESTION # 210
In which of the following persuasion methods, the influencer uses logics and objective reasons to persuade the others to buy intoinfluencer's ideas?
- A. Directive (push)
- B. Visionary (pull)
- C. Persuasive reasoning (push)
- D. Collaborative (pull)
Answer: C
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 resultof their reflection and thinking, and not your direct actions.
There are multiple variables to consider when choosing between 'push' and 'pull'. Professor Fiona Dent of Ashridge Business School proposes situations when each style might be most appropriate, breaking down push into 'directive' and 'reasoning' and 'pull' into 'collaborative' and 'visionary':
Table Description automatically generated

Text Description automatically generated

Using logical and objective reasons is one of the typical characteristics of persuasion reasoning method.
NEW QUESTION # 211
Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.
- A. Allowing supplier to involve in early product development
- B. Conducting transparent procurement process
- C. Tendency to blame other party
- D. Commercial espionage
- E. Over-inflated contingency funds
Answer: A,B
Explanation:
Trust-building behaviours are as following:
Joint-effort issue resolution
Open sharing of information
Open and honest discussion on root cause of failures
Joint planning focusing on value for money and risk sharing
Commercial transparency and co-proposition of cost reduction and service improvement programmes Joint recognition and celebration of successes
NEW QUESTION # 212
Jessica Taylor, a senior buyer, is asked to create a written performance report after her latest negotiation.
Which of the following should she include? Select THREE.
- A. A comparison of actual versus set objectives
- B. Evaluation of the negotiator's performance
- C. Other suppliers that could have been used
- D. Travel expenses to attend the meeting
- E. A checklist of points learned for the future
- F. A detailed pricing structure
Answer: A,B,E
Explanation:
A negotiation performance review should focus on measuring outcomes against objectives, lessons learned, and evaluation of negotiator effectiveness. This ensures continual improvement and supports organisational learning. Pricing structures and alternative suppliers may have been reviewed earlier, but are not part of post- performance reflection. Travel expenses are irrelevant to negotiation learning. By focusing on objectives, learning, and performance, organisations embed best practice and prepare stronger strategies for future negotiations.
Reference: CIPS L4M5 (2nd ed.), LO 2.2 - Post-negotiation review and performance evaluation.
NEW QUESTION # 213
A procurement manager has decided to bring in a junior member of their team to a negotiation meeting.
Which of the following would be suitable roles for this junior member of the team?
- A. 1 and 2 (Note taker and Expert)
- B. 1 and 3 (Note taker and Observer)
- C. 3 and 4 (Observer and an unspecified fourth option - assumed error)
- D. 2 and 3 (Expert and Observer)
Answer: B
NEW QUESTION # 214
Which of the following is a variable cost?
- A. Rent
- B. Loan repayments
- C. Packaging
- D. Insurance
Answer: C
Explanation:
Variable costs change in proportion to production volume, such as packaging, raw materials, and delivery.
Fixed costs (rent, insurance, loan repayments) remain constant regardless of output. Recognising the difference is crucial when negotiating supplier pricing, as variable costs are often more open to tradeable adjustments (e.g., bulk discounts). Buyers who understand cost structures can challenge inflated fixed allocations or negotiate on genuine variable elements. This knowledge is vital in price breakdown discussions and in cost-modelling negotiations.
Reference: CIPS L4M5 (2nd ed.), LO 2.2 - Cost structures: fixed vs variable costs in negotiation preparation.
NEW QUESTION # 215
......
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