MCQ Quiz-Negotiations

MCQ Quiz: The Art and Science of Negotiation

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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.

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