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CIPS Commercial Negotiation Sample Questions (Q73-Q78):

NEW QUESTION # 73
Which of the following is a key element to developing high-trust supplier relationships?

Answer: D

Explanation:
Trust develops when organisations consistently deliver on commitments-meeting deadlines, respecting terms, and fulfilling promises. While audits, contract management, and data gathering support oversight, they do not in themselves build trust. In collaborative negotiations, reliability becomes the foundation of long-term partnerships, reducing the need for constant monitoring. CIPS highlights that trust is fragile and must be reinforced through transparency, consistent behaviour, and alignment of actions with words. This credibility is more persuasive than any formal monitoring.
Reference: CIPS L4M5 (2nd ed.), LO 3.1 - Trust and relationship-building in negotiation contexts.


NEW QUESTION # 74
Which of the following may help the procurement professional increase expert power in commercial negotiation? Select TWO that apply.

Answer: C,D

Explanation:
:
Expert power is based on a person's high levels of skill and knowledge, formal training, qualifications and experience in a particular procurement category would give someone expert status and mean that in negotiation their voice is listened to as a more objective, informed knowledge leader. Expert power is based on facts, knowledge, research, insight and study.
Legitimate power comes from rules, formal authority, organisation rank, staff rate or official position held.
Reward power comes from one person's ability to compensate or reward another for compliance.
Referent power stems from their personality, way of engaging with others and habit of acting in a way that is in line with a strong set of values and principles.


NEW QUESTION # 75
A buyer is approaching a negotiation where the company is in a low-power negotiating position in relation to the supplier. How can the buyer improve leverage and power with the supplier?
* Consolidate the expenditure from across the organisation to increase the size and value of the requirement
* Understand the supplier's costs and margins prior to the negotiation to demonstrate that you know what it costs to produce the product
* Take a distributive approach to the negotiation and refuse to make concessions
* Limit communication and information sharing with the supplier so as not to give anything away

Answer: D

Explanation:
When buyer power is low, leverage must be created rather than assumed. Consolidating organisational spend increases volume and commercial importance to the supplier, directly strengthening buyer power.
Understanding supplier costs and margins reduces information asymmetry and demonstrates commercial competence, which improves credibility and influence during negotiations. Refusing concessions and limiting communication are typical of adversarial tactics and often weaken relationships when power is already limited. CIPS clearly advises buyers to use aggregation of demand and market intelligence as ethical and effective methods to rebalance power without damaging long-term supplier relationships.
Reference: CIPS L4M5 Commercial Negotiation (CORE), 2nd edition - LO 3.1: Sources of power and methods to improve buyer leverage.


NEW QUESTION # 76
Which of the following is an attribute of a distributive negotiation approach?

Answer: A

Explanation:
Distributive negotiation is often described as a "win-lose" approach, where each party aims to maximize their own gain, often at the expense of the other. The focus is onachieving personal success, not collaboration.
Reference: L4M5 Commercial Negotiation 2nd edition (CORE), Section 1.1 - Distributive vs Integrative Negotiation Approaches


NEW QUESTION # 77
Buying organisation may increase its leverage with suppliers by concentrating spend. Which of the following are most likely to be forms of supplier spend consolidation? Select THREE that apply.

Answer: B,D,F

Explanation:
:
Buying organisation may increase its leverage with suppliers by concentrating spend. Supplier spend consolidation can take many forms as outlined below:
Vendor base reduction: straightforward reduction of number of suppliers in any category Volume pooling: pooling cross organisational requirement until your order volume is high enough to attract new bidders/additional discounts Volume redistribution: making recommendations following spend analysis to move from one supplier to another Volume consolidation across categories: certain purchase requirements may be common across a number of categories Standardisation and harmonisation of specifications: analysis of specifications and standards for a high spend purchased input, may show that there is a little difference between them and that the specification can be standardised or at least harmonised across the group or across national, regional or global operations.
Forming purchasing consortia: buyers may decide to come together and combine their purchase volumes to attract better deals.


NEW QUESTION # 78
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