100% Pass 2025 L4M5: Commercial Negotiation–Valid Practice Guide

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CIPS Commercial Negotiation Sample Questions (Q127-Q132):

NEW QUESTION # 127
In which of the following persuasion methods, the influencer uses logics and objective reasons to persuade the others to buy intoinfluencer's ideas?

A. Persuasive reasoning (push)
B. Collaborative (pull)
C. Visionary (pull)
D. Directive (push)

Answer: A

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':
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Using logical and objective reasons is one of the typical characteristics of persuasion reasoning method.

NEW QUESTION # 128
According French and Raven's base model, which of the following are sources of personal power that can be used in commercial negotiation? Select THREE that apply.

A. Competitive power
B. Legitimate power
C. Purchasing spend power
D. Coercive power
E. Trademark power
F. Expert power

Answer: B,D,F

Explanation:
:
A useful model of personal power that has survived the test of time and provide a simple way to analyse negotiation in French and Raven's Power Base Model, which describes six bases of power:
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NEW QUESTION # 129
A procurement professional is negotiating with a supplier on cleaning service. She realises that there are huge cost-saving opportunities if the supplier agrees to reduce its mark-up and unnecessary employee benefits.
Supplier's mark-up and employee benefits are examples of which of the following?

A. Spend tree
B. Spend waterfall
C. Spend cube
D. Addressable spend

Answer: D

Explanation:
Explanation
A key consideration when seeking to negotiate prices is to establish what proportion of the spend is addressable by procurement action such as negotiation. Addressability of spend is influenceable through negotiations or application of other saving effort or leverage with suppliers.
LO 2, AC 2.1

NEW QUESTION # 130
Which of the following would help build trust in a relationship?
* Mediation attendance
* Regular meetings
* Keep promises
* Coercion

A. 2 and 3 only
B. 1 and 3 only
C. 2 and 4 only
D. 1 and 4 only

Answer: A

Explanation:
Trust is built through consistent communication (e.g., regular meetings) and fulfilling commitments (keeping promises). Coercion erodes trust, while mediation is reactive and not a foundational element of trust-building.
Reference: L4M5 Commercial Negotiation 2nd edition (CORE), Section 1.2 - Developing Trust in Supplier Relationships

NEW QUESTION # 131
A competitive win-lose distributive approach to a negotiation is seeking to:

A. Maximise joint gains for both parties so that resources and benefits are equally shared
B. Compromise and split the difference so that both parties do not get what they want
C. Foster collaboration and trust between the parties to enable joint problem solving
D. Obtain the largest possible share of resources or benefits at the expense of the other party

Answer: D

NEW QUESTION # 132
......

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