Negotiation is a fundamental skill for pharmacists, used in daily interactions with patients, providers, payers, and managers to achieve optimal outcomes. From securing a better price on a medication for a patient to advocating for a new clinical service with an administrator, the ability to negotiate effectively is a hallmark of a pharmacy leader. This quiz for PharmD students will test your knowledge on the core principles, strategies, and communication tactics of successful negotiation.
1. A negotiation where the parties are competing over a fixed amount of value, and one party’s gain is the other’s loss, is known as:
- Integrative negotiation
- Distributive negotiation (win-lose)
- Collaborative negotiation
- Principled negotiation
Answer: Distributive negotiation (win-lose)
2. An “integrative” or “win-win” negotiation is one that focuses on:
- Dividing a fixed pie.
- Claiming the most value for oneself.
- Creating value by exploring underlying interests and finding mutual gains.
- Using hardball tactics to force an agreement.
Answer: Creating value by exploring underlying interests and finding mutual gains.
3. What does the acronym BATNA stand for in negotiation?
- Best Agreement To a Negotiated Alternative
- Best Alternative To a Negotiated Agreement
- Bargaining Agreement That is Now Available
- Best Available Tactic for a New Agreement
Answer: Best Alternative To a Negotiated Agreement
4. Why is having a strong BATNA so important in a negotiation?
- It provides the power to walk away from a poor deal.
- It is the same as your target price.
- It is the first offer you should make.
- It guarantees a win-win outcome.
Answer: It provides the power to walk away from a poor deal.
5. The “reservation price” or “walk-away point” is the:
- First offer you make in a negotiation.
- The price you would ideally like to achieve.
- The least favorable point at which you will accept a deal.
- The average of all offers made.
Answer: The least favorable point at which you will accept a deal.
6. A negotiator’s stated demand (e.g., “I want a 10% raise”) is their ________, while the underlying reason for that demand (e.g., “I need to afford rising childcare costs”) is their ________.
- Interest; Position
- Position; Interest
- BATNA; Reservation Price
- Target; Alternative
Answer: Position; Interest
7. In an integrative negotiation, it is most effective to focus on the other party’s:
- Stated positions.
- Underlying interests.
- Weaknesses.
- First offer.
Answer: Underlying interests.
8. The strategy of making the first offer in a negotiation is known as:
- Conceding
- Anchoring
- Framing
- Active listening
Answer: Anchoring
9. The “anchoring effect” describes the cognitive bias where people tend to:
- Rely too heavily on the first piece of information offered when making decisions.
- Walk away from any deal that is not perfect.
- Always split the difference between the first two offers.
- Focus only on their own interests.
Answer: Rely too heavily on the first piece of information offered when making decisions.
10. A key principle of principled negotiation, as described in “Getting to Yes,” is to:
- Focus on positions, not interests.
- Separate the people from the problem.
- Insist on using subjective criteria.
- Avoid inventing options for mutual gain.
Answer: Separate the people from the problem.
11. A pharmacist is negotiating with a manager for a new clinical service. The manager’s position is “we have no budget,” but their interest might be “I need to ensure any new service generates a return on investment.” An effective negotiation strategy would be to:
- Argue that the budget is not your problem.
- Present a business plan showing the financial benefits and positive ROI of the service.
- Immediately give up on the idea.
- Go over the manager’s head to their boss.
Answer: Present a business plan showing the financial benefits and positive ROI of the service.
12. When making concessions in a negotiation, a best practice is to:
- Make a large concession at the very beginning to show goodwill.
- Make concessions that are progressively smaller to signal you are nearing your reservation price.
- Never make any concessions.
- Make concessions of a random and unpredictable size.
Answer: Make concessions that are progressively smaller to signal you are nearing your reservation price.
13. The practice of “active listening” during a negotiation involves:
- Waiting for the other person to stop talking so you can make your next point.
- Paying close attention, paraphrasing to confirm understanding, and asking clarifying questions.
- Interrupting frequently to show you are engaged.
- Focusing only on the numbers and not what the other person is saying.
Answer: Paying close attention, paraphrasing to confirm understanding, and asking clarifying questions.
14. A key part of preparing for a negotiation is:
- To enter the negotiation with no clear goals.
- To research the other party’s interests and BATNA.
- To focus only on your own strengths.
- To plan to be as inflexible as possible.
Answer: To research the other party’s interests and BATNA.
15. A pharmacist advocating for a non-formulary medication for a patient is negotiating with the insurance company. The pharmacist’s strongest source of power in this negotiation is:
- Their title as a pharmacist.
- Their personal relationship with the insurance agent.
- Their ability to provide a strong, evidence-based clinical rationale for the request.
- The high cost of the medication.
Answer: Their ability to provide a strong, evidence-based clinical rationale for the request.
16. The concept of “framing” in a negotiation refers to:
- The physical setting where the negotiation takes place.
- The way a proposal or issue is presented to influence the other party’s perception.
- A type of legal document.
- The final agreement.
Answer: The way a proposal or issue is presented to influence the other party’s perception.
17. “Logrolling” is an integrative negotiation tactic where parties:
- Argue back and forth on a single issue.
- Make concessions on issues of low priority to them in exchange for concessions on issues of high priority.
- Split the difference on every issue.
- End the negotiation in a stalemate.
Answer: Make concessions on issues of low priority to them in exchange for concessions on issues of high priority.
18. A key leadership skill in negotiation is the ability to:
- Control and manage one’s own emotions.
- React emotionally to every offer.
- Make the negotiation a personal conflict.
- Avoid all communication.
Answer: Control and manage one’s own emotions.
19. A pharmacist is negotiating a job offer. The “salary” is one issue. An integrative approach would involve:
- Focusing only on the salary number.
- Identifying other issues of value, such as continuing education allowance, flexible scheduling, or professional development opportunities.
- Accepting the first offer without question.
- Demanding a salary that is double the initial offer.
Answer: Identifying other issues of value, such as continuing education allowance, flexible scheduling, or professional development opportunities.
20. What is the danger of having a poor BATNA?
- It forces you to accept an unfavorable agreement.
- It gives you more power in the negotiation.
- It guarantees a win-win outcome.
- It is not a factor in negotiation.
Answer: It forces you to accept an unfavorable agreement.
21. A “difficult conversation” is a type of negotiation that often involves:
- High emotions and a disagreement where the stakes are high.
- A simple, straightforward request.
- Two parties who are in complete agreement.
- No preparation.
Answer: High emotions and a disagreement where the stakes are high.
22. In a multi-party negotiation, a key strategy for success is to:
- Try to make a separate deal with each party individually.
- Form a coalition with parties who share similar interests.
- Insist that your position is the only one that matters.
- Avoid speaking to any of the other parties.
Answer: Form a coalition with parties who share similar interests.
23. A pharmacist is negotiating with a patient who is hesitant to start a new medication. The pharmacist’s goal should be to:
- Use their authority to force the patient to take the drug.
- Use a shared decision-making approach to understand the patient’s concerns and find a mutually agreeable path forward.
- Refuse to fill any of the patient’s other prescriptions.
- Dismiss the patient’s concerns as unimportant.
Answer: Use a shared decision-making approach to understand the patient’s concerns and find a mutually agreeable path forward.
24. The Zone of Possible Agreement (ZOPA) is the range:
- Between the first two offers.
- Between the buyer’s reservation price and the seller’s reservation price.
- Of all possible BATNAs.
- Of outcomes that are unacceptable to both parties.
Answer: Between the buyer’s reservation price and the seller’s reservation price.
25. If there is no overlap between the parties’ reservation prices, then:
- A ZOPA does not exist, and a deal is unlikely.
- A deal is guaranteed.
- The negotiation will be integrative.
- The parties should focus on their positions.
Answer: A ZOPA does not exist, and a deal is unlikely.
26. A key part of the “Business Plan Elements” assignment is to create a document that can be used as a tool for:
- Negotiating for funding or resources from administrators.
- Managing daily dispensing tasks.
- Compounding sterile products.
- Counseling a single patient.
Answer: Negotiating for funding or resources from administrators.
27. A leader who is “forging ahead” with an organizational change must be skilled at negotiation to:
- Overcome resistance and get buy-in from key stakeholders.
- Force the change on unwilling employees.
- Avoid all communication about the change.
- Maintain the status quo.
Answer: Overcome resistance and get buy-in from key stakeholders.
28. A key ethical consideration in negotiation is to:
- Use deceptive tactics to gain an advantage.
- Behave honestly and in good faith.
- Make promises that you cannot keep.
- Misrepresent your BATNA.
Answer: Behave honestly and in good faith.
29. When negotiating via email, it is important to be aware that:
- It is easier to build rapport than in person.
- Misunderstandings can easily arise due to the lack of non-verbal cues.
- The negotiation will be faster than a phone call.
- It is the best medium for complex, integrative negotiations.
Answer: Misunderstandings can easily arise due to the lack of non-verbal cues.
30. The ultimate goal of a successful negotiation is to:
- Defeat the other party.
- Reach a wise agreement that is durable and meets the legitimate interests of both parties.
- Get the best possible deal for yourself, even if it damages the relationship.
- End the negotiation as quickly as possible, regardless of the outcome.
Answer: Reach a wise agreement that is durable and meets the legitimate interests of both parties.
31. Asking open-ended questions like “Can you help me understand why that is important to you?” is a tactic to uncover:
- Positions
- Interests
- BATNAs
- Reservation prices
Answer: Interests
32. The “power of silence” in a negotiation can be used to:
- Show that you are not interested in the deal.
- Make the other party uncomfortable and potentially elicit more information or a concession.
- End the negotiation immediately.
- Create a friendly and relaxed atmosphere.
Answer: Make the other party uncomfortable and potentially elicit more information or a concession.
33. Which of the following is an example of using objective criteria in a salary negotiation?
- “I feel like I deserve more.”
- “My friend who works here gets paid more.”
- “Based on the national salary survey data for a pharmacist with my experience, the average salary is X.”
- “I will quit if I don’t get the salary I want.”
Answer: “Based on the national salary survey data for a pharmacist with my experience, the average salary is X.”
34. The skills learned in “difficult conversations” are directly applicable to negotiation because they teach you how to:
- Manage high-stakes disagreements with professionalism and empathy.
- Win every argument.
- Avoid emotional topics.
- Focus only on the facts.
Answer: Manage high-stakes disagreements with professionalism and empathy.
35. A “contingency contract” is a negotiation agreement where:
- The final terms are dependent on a future event or outcome.
- One party agrees to all of the other party’s demands.
- The contract is not legally binding.
- The negotiation ends in a stalemate.
Answer: The final terms are dependent on a future event or outcome.
36. A leader’s ability to negotiate effectively with their team is a key component of overcoming which of the “Five Dysfunctions”?
- Fear of Conflict and Lack of Commitment
- Absence of Trust
- Inattention to Results
- Avoidance of Accountability
Answer: Fear of Conflict and Lack of Commitment
37. In which pharmacy practice setting is negotiation with payers and pharmaceutical companies a central function?
- Community pharmacy
- Hospital pharmacy
- Managed care pharmacy
- Ambulatory care pharmacy
Answer: Managed care pharmacy
38. The process of “expanding the pie” is central to which type of negotiation?
- Distributive
- Win-lose
- Integrative
- Zero-sum
Answer: Integrative
39. A pharmacist who successfully negotiates for a dedicated counseling space in a busy pharmacy is advocating for:
- Their own personal comfort.
- Patient safety and privacy.
- A higher salary.
- A shorter workday.
Answer: Patient safety and privacy.
40. Why is it important to know your own BATNA before a negotiation?
- So you can reveal it to the other party immediately.
- It is not important to know your own BATNA.
- So you know when to accept an offer and when to walk away.
- To make the negotiation more challenging.
Answer: So you know when to accept an offer and when to walk away.
41. The use of “I statements” (e.g., “I feel concerned when…”) is a communication technique that can:
- Escalate conflict by blaming the other person.
- De-escalate conflict by expressing your perspective without attacking the other person.
- Show weakness in a negotiation.
- Be used to state your position aggressively.
Answer: De-escalate conflict by expressing your perspective without attacking the other person.
42. A “nibble” is a negotiation tactic where a party:
- Makes a large demand at the end of the negotiation.
- Asks for a small, extra concession right after a deal has been agreed upon.
- Ends the negotiation abruptly.
- Makes their first offer.
Answer: Asks for a small, extra concession right after a deal has been agreed upon.
43. The best way to counter an aggressive “anchoring” offer from the other party is to:
- Accept the offer immediately.
- Walk away from the negotiation.
- Make an equally aggressive counter-offer to re-anchor the negotiation.
- Ignore the anchor and focus on your own first offer.
Answer: Ignore the anchor and focus on your own first offer.
44. The skills of “advocacy” are essentially a form of:
- Negotiation on behalf of a patient, a cause, or the profession.
- Dispensing.
- Clinical research.
- Financial management.
Answer: Negotiation on behalf of a patient, a cause, or the profession.
45. Building a good long-term relationship in a negotiation is most important when:
- You will never see the other party again.
- You are in a one-time, distributive negotiation.
- You will have an ongoing relationship with the other party (e.g., a supplier, a colleague).
- The relationship is not a factor.
Answer: You will have an ongoing relationship with the other party (e.g., a supplier, a colleague).
46. A leader’s “emotional intelligence” is a key asset in negotiation because it helps them to:
- Understand and manage their own emotions and perceive the emotions of others.
- Ignore all emotional aspects of the negotiation.
- Use emotion to manipulate the other party.
- Make the negotiation as tense as possible.
Answer: Understand and manage their own emotions and perceive the emotions of others.
47. Which part of the business plan is a negotiation tool in itself?
- The entire plan can be used to negotiate for resources, funding, or support.
- The Table of Contents.
- The Appendix.
- The Mission Statement.
Answer: The entire plan can be used to negotiate for resources, funding, or support.
48. Cultural differences can impact negotiations by affecting:
- Communication styles.
- The importance of relationship-building.
- The perception of time.
- All of the above.
Answer: All of the above.
49. A pharmacist negotiating a schedule change with their manager should prepare by:
- Demanding the change as a right.
- Understanding the needs of the pharmacy and proposing a solution that benefits both the pharmacist and the pharmacy’s operations.
- Complaining to their colleagues.
- Threatening to quit if their request is not met.
Answer: Understanding the needs of the pharmacy and proposing a solution that benefits both the pharmacist and the pharmacy’s operations.
50. The ultimate sign of a masterful negotiator is:
- Winning every point in a negotiation.
- Leaving the other party feeling respected and satisfied with the outcome, even in a tough negotiation.
- Making the negotiation last as long as possible.
- Never having to negotiate at all.
Answer: Leaving the other party feeling respected and satisfied with the outcome, even in a tough negotiation.
