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CIPS L4M5 Exam | Valid L4M5 Test Pattern - Help you Pass L4M5: Commercial Negotiation Exam

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To prepare for the CIPS L4M5 Exam, candidates are recommended to have completed the CIPS L4M4 (Negotiating and Contracting in Procurement and Supply) module, which provides a solid foundation in negotiation theory and practice. Additionally, candidates should have practical experience in negotiating commercial contracts and be familiar with the legal and regulatory requirements that govern commercial transactions.

CIPS Commercial Negotiation Sample Questions (Q364-Q369):

NEW QUESTION # 364
Which of the following are tactics of distributive bargaining?
* Withholding information that may open up common ground
* Coercing the other party to accept your position
* Finding common ground between parties
* Being open about all your common needs

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

Answer: A

Explanation:
Distributive bargainingfocuses onmaximizing one's own gainat the expense of the other party. Common tactics includewithholding informationandcoercion. It is typically used in zero-sum negotiations where parties compete over a fixed value.
"Tactics in distributive bargaining include withholding key information, making extreme opening offers, and using pressure to achieve concessions. These are aimed at maximizing individual outcomes." (L4M5 Commercial Negotiation, 2nd edition, Section 3.5 - Tactics of Distributive Bargaining)

NEW QUESTION # 365
Premium pricing strategies used by suppliers are characterised by which of the following? Select TWO that apply.

A. This strategy is often used when supplier attempts to enter new market
B. Premium price is determined by variable costs only
C. Products are charged at a price based on supplier's reputation
D. Price is based on cost structures
E. Typically found in the early part of the product life cycle

Answer: C,E

Explanation:
There are several pricing strategies used by suppliers:
Cost-plus pricing - Total variable + Fixed cost + profit
Premium pricing - based on branding. Supplier determines to charge a very high price, notconnected with cost structures, usually based on its reputation and/or the perception that the product/service is of a superior quality. This strategy typically found in the early part of the product life cycle/when demand exceeds supply.
Penetration pricing - Supplier attempts to enter a new market or extend its share in an established one. It is characterised by price reductions to increase volume, followed by steady price increases; may even be loss leading at start (no profit made) Marginal cost pricing - covers only variable cost Market pricing - suppliers prices in line with what the market is willing to pay

NEW QUESTION # 366
Listening is a key activity in any negotiation. Which of the following are characteristics of effective listeners?

A. 2 and 4 only (Persuading and Offering immediate solutions)
B. 1 and 2 only (Showing empathy and Persuading)
C. 3 and 4 only (Paraphrasing and Offering immediate solutions)
D. 1 and 3 only (Showing empathy and Paraphrasing)

Answer: D

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

NEW QUESTION # 367
When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?

A. When buyer and supplier have equal power but are strongly committed to mutually exclusive goals
B. When both buyer and supplier want to find anintegrative solution as their concerns are too important to be compromised
C. When preserving harmony and avoiding disruption with supplier are especially important
D. When buyer needs to gather more information to gain more advantages in later negotiations

Answer: C

Explanation:
Explanation
According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Accommodating is an unassertive andcooperative approach to resolving the conflict. Accommodating means conceding to the other party with little debate or fight, not challenging or strongly putting forward your own point of view and generally giving and yielding to the other party's point of view. Accommodating is best used when:
1. When others can resolve the conflict more effectively
2. When the issue is much more important to the other person than to yourself - to satisfy the needs of others and to show you are reasonable
3. To build upsocial credit for later issues which are important to you
4. When continued competition would only damage your cause
5. When preserving harmony and avoiding disruption are especially important
6. To aid in the managerial development of subordinates by allowing them to experiment and learn from their own mistakes LO 1, AC 1.1

NEW QUESTION # 368
Which of the following are variable costs?

A. Loan repayments
B. Insurance
C. Rent
D. Packaging

Answer: D

Explanation:
Packaging is considered a variable cost because it fluctuates with the level of production or sales activity.
Variable costs change directly in relation to the volume of output or service. In contrast:
Rent (A), Loan repayments (B), and Insurance (C) are fixed costs, as they generally do not vary with production levels within a certain range. These are recurring costs that remain constant over time, aligning with CIPS's cost classification in procurement.

NEW QUESTION # 369
......

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Online Engine L4M5 Real Exam Questions

CIPS L4M5 Exam | Valid L4M5 Test Pattern - Help you Pass L4M5: Commercial Negotiation Exam

CIPS Commercial Negotiation Sample Questions (Q364-Q369):

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