Question 1

Which of the following are factors that might shift the demand curve for a consumer good to the right?

1. Prices of complementary goods decrease

2. Price of the consumer good decreases

3. Customers' expectation of higher prices in the future

4. Consumer tastes shift toward substitute products

Options :

A : 3 and 4 only

B : 4 and 2 only

C : 1 and 3 only

D : 1 and 2 only

Answer: C

Question 2

Which of the following would describe a push approach to influencing?

Exerting power or authority

Extensive use of open questioning

The party being influenced is fully aware of the process occurring

The party being influenced may not be aware of the process happening

Options :

A : 1 and 2 only

B : 3 and 4 only

C : 1 and 3 only

D : 2 and 4 only

Answer: C

Question 3

A senior buyer analyses the supply market and he realises that his organisation is treated as Exploit according to supplier's perspective model. What does he need to do?

Options :

A : Adopt opaque processes

B : Increase the spend value

C : Raise the transactional costs to do business

D : Pay the suppliers on time

Answer: D

Question 4

Any commercial negotiation process has only three potential stakeholders: procurement, the budget holders, and the users. Is this TRUE?

Options :

A : Yes, and the budget holder is the most important one because of the finances involved

B : Yes, the role of procurement is to ensure that the technical specifications are fit for purpose

C : No, only procurement, the user, and suppliers have an interest in the products negotiated

D : No, other stakeholders, such as directors, and IT might also be interested in the negotiation outcomes

Answer: D

Question 5

What is the most likely outcome when two organisations with adversarial relationship negotiate with each other?

Options :

A : Deadlocked

B : Lose lose

C : Win lose

D : Win win

Answer: C