Mind and Heart of the Negotiator 6th

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 Chapter 6 – Test Bank - Establishing Trust and Building a Relationship 1

MULTIPLE-CHOICE QUESTIONS

1. The resources that people exchange in a relationship vary in its terms of ______, or how much
utility we derive from who is providing the resource, and _____, or the resource’s tangibility.
A. identity ; scarcity
B. particularism ; concreteness (p.123)
C. social status ; reciprocity
D. fairness ; similarity

2. People form three major types of trust relationships with others; one of those trust types is
deterrence-based trust and it is based on:
A. reverse psychology
B. consistency of behavior (p.125)
C. loss-frame thinking
D. emotional connection

3. With regard to the three different types of trust that negotiators can form in their relationships
with a counterparty, identification-based trust results from:
A. seeing another person as a bad role model
B. having complete empathy with another party (p.127)
C. trusting that the counterparty will stand behind their issued threats
D. reciprocating another party’s behavior

4. Negotiators often develop trusting, long-term relationships with people who are physically
close to them, or located nearby. This effect is known as the:
A. reactance theory
B. halo effect
C. propinquity effect (p. 132)
D. networking game

5. All of the following are effective strategies for transforming personal conflict into task conflict,
except:
A. focusing on the future
B. concealing anger and frustration (pp.129-130)
C. finding a common node in parties’ social networks
D. joining forces to compete against a common enemy

6. With regard to successfully repairing broken trust in negotiations, which of the following is
most true?
A. People who believe that moral character can change over time are less likely to trust
someone after an apology
B. Repairing broken trust is more difficult with individuals than with groups
C. Allowing the injured parties express their feelings is an important step (pp. 135-138)
D. Avoid involving a professional third party

Copyright ©2015 Pearson Education, Inc.

 Chapter 6 – Test Bank - Establishing Trust and Building a Relationship 2

7. When negotiating with friends, it is important to recognize that many friendships are built on
communal norms. People in communal relationships:
A. keep track of who has invested what in a relationship, and compensate each friend
based on their inputs
B. respond to each other’s needs without expectation of being repaid (p. 142)
C. do not reciprocate resource sharing with in-group members
D. always ignore the use of rights or power

8. When considering a person’s reputation in negotiation, which of the following is most true?
A. Reputations don’t have much effect on how others deal with them in a negotiation
B. Reputations are formed quickly as a result of firsthand, as well as secondhand
experiences (p. 139)
C. Reputations can be easily and rapidly changed
D. One’s reputation is only important to consider if one is a leader or CEO

9. In contrast to negotiating with friends who allocate resources based on communal norms,
businesspeople are much more likely to use ______.
A. self-organizing arrangements
B. compromise agreements
C. affective routes
D. exchange norms (p. 142)

10. When friends and family do business together, the relationship is more complex and is known
as:
A. an embedded relationship (p.146)
B. schmoozing
C. a swift trust relationship
D. a cognitive conflict relationship

11. In negotiation, the reactance principle is the tendency for people to:
A. do the opposite of what someone tells them to do if they feel they are not given a
choice (pp.125-126)
B. speak before they have actually heard the other party
C. quickly reanchor when the other party makes an opening offer, especially an extreme one
D. quickly react by giving up their desired outcome

12. The Subjective Value Inventory is a survey that assesses the four major concerns held by
negotiators: feelings about their instrumental outcomes, feeling about themselves, feelings
about the negotiation process, and:
A. feelings about their relationships (p.123)
B. feelings about their finances
C. feelings about their material goods
D. feelings about personal feedback
13. There are two key problems with deterrence-based trust systems. First, they can backfire, and
second:

Copyright ©2015 Pearson Education, Inc.

 Chapter 6 – Test Bank - Establishing Trust and Building a Relationship 3

A. insufficient information about punishments in this trust system can make people less
interested in rebelling
B. high levels of trust between managers and employees thrive in this trust system
C. this system decreases dependence and commitment among parties
D. they are expensive to develop and maintain (p.125)
14. People often have a negative reaction when they perceive that someone is controlling their
behavior or limiting their freedom. When people think their behavior is controlled by extrinsic
motivators:
A. they are less likely to comply with demands
B. their intrinsic motivation may be reduced (p. 126)
C. they are less likely to engage in risky behaviors
D. dependence and commitment among parties increases
15. Knowledge-based trust is grounded in behavioral predictability and it occurs when a person
has enough information about others to understand them and accurately predict their behavior.
Whenever informational uncertainty or asymmetry characterizes a relationship, it provides
opportunity for deceit, and one or both negotiators risk ______.
A. judgment by other parties
B. being corrupted
C. exploitation (p. 126)
D. damaging their reputations
16. Of the three types of trust systems that can be formed in relationships, knowledge-based trust
systems:
A. are fueled by extrinsic motivators
B. are expensive to develop and maintain
C. are grounded in complete empathy with another person’s desires and intentions
D. increase dependence and commitment among parties (p. 127)
17. Regarding the types of conflict that can occur in relationships, _____ is a depersonalized form of
conflict, consisting of the argumentation about the merits of ideas, plans, and projects,
independent of the identity of the people involved.
A. personal conflict
B. task conflict (p. 129)
C. the lose-lose effect
D. illusory conflict
18. The _____ route to building trust is based on rational and deliberate thought and consideration.
_____ trust is based on intuition and emotion.
A. business ; personal
B. cognitive; affective (p. 127)
C. casual ; intimate
D. long term ; short term
19. Considering the psychological mechanisms for building trust between negotiators, which of the
following situations best illustrates the similarity-attraction effect?
A. A sales trainee wears shorts to the office, but the boss wears a suit
B. Marchers in a political demonstration dress in all black
C. A man strikes up a conversation with an older gentleman reading the same book as he
is (pp. 130-131)
D. People with diverse backgrounds generate more creative solutions

Copyright ©2015 Pearson Education, Inc.

 Chapter 6 – Test Bank - Establishing Trust and Building a Relationship 4

20. Of the different psychological methods that negotiators can employ to build trust with the
counterparty, the use of which principle can make a counterparty feel obligated to return in
kind what the negotiator has offered or given to them?
A. The propinquity effect
B. Functional distance
C. The reciprocity principle (p. 132)
D. The mere-exposure effect
21. Negative emotions don’t always negatively affect outcomes. Which of the following negative
states can foster the development of integrative outcomes in negotiation because it can drive a
search for information?
A. Anger
B. Suspicion (p. 134)
C. Depression
D. Greed
22. Negotiators often make dispositional, as opposed to situational, attributions for the
questionable behavior of the other party which can threaten trust. Which of the following can be
characterized as a dispositional attribution for a negotiator’s late arrival to a meeting?
A. Traffic jam
B. Lost keys
C. Tired due to late night
D. Arrogance (p. 135)
23. Which of the following should be one of the first steps a negotiator should take to effectively
repair broken trust?
A. Discuss who was right and who was wrong
B. Arrange a personal meeting and let the counterparty vent (p. 136)
C. Immediately apologize
D. Defend the reasoning behind your actions
24. In regard to reestablishing trust, a negotiator’s ability to ________ is directly related to how
satisfied the other party feels, independent of the monetary value of the outcome.
A. defend their position
B. find reasons for failure
C. understand emotion (p. 138)
D. think critically
25. One reason why it is difficult for negotiators to recover from making a bad impression is related
to the “forked tail effect” which means that:
A. we believe that people we trust and like are also intelligent and capable
B. the reputations we assign to others tend to be highly positive
C. once we form a negative impression of someone, we tend to view everything else
about them in a negative fashion (p. 139)
D. the reputations we assign to others are not internally consistent
26. Some negotiation relationships are purely business-related; others are entirely personal. Some
are a mix of business and personal and are known as:
A. inconsistent relationships
B. inferential relationships
C. sticky tie relationships
D. embedded relationships (p. 141)

Copyright ©2015 Pearson Education, Inc.

 Chapter 6 – Test Bank - Establishing Trust and Building a Relationship 5

DISCUSSION QUESTIONS

1. What are some considerations people might have in a negotiation that are not necessarily
monetary in nature?

2. Generate some examples of embedded relationships (personal or historical). What are some of
the pitfalls associated with these relationships?

3. Identify some of the ways that repairing a ‘bad reputation’ is similar to repairing broken trust?

4. What are some of the reasons that people are uncomfortable negotiating with friends? Outline
the advantages and disadvantages of negotiating with friends.

5. What are some of the advantages and disadvantages of negotiations between businesspeople
and how do they differ from purely personal negotiations?

6. What are some of the psychological strategies for building trust in a relationship?

7. Why is power or status significant when interpreting ambiguous and/or slightly negative
situations between high- and low-power people?

8. Regarding relationships in negotiation, how can “distributive spirals” affect negotiators?

Suggested answers

1. Nonmonetary utility can include trust, security, happiness, peace of mind, relationships, love,
services, goods, status, information, or whatever negotiators care about. (p. 122)

2. Roommates who co-own a business, a brother and a sister who work in the same department at
work (pp. 141, 146-147). Interpersonal issues can seep into affecting the professional
relationships of the same two people.

3. Repairing a bad reputation is similar to repairing broken trust—people will look at your
behavior more than your words, so it is important to act in a trustworthy fashion. (pp. 139-140)

4. The reason for following the motto “friends should not do business” is defined by the fact that
we should take care of people we love, respond to their needs, and not “keep track” of who has
contributed to what, but in negotiation we are trying to maximize our own interests.
Advantages: Friends are less competitive, exchange more information, make more concessions,
make fewer demands, and are more generous with one another. Disadvantages: Friends are too
willing to compromise or to engage in the firm flexibility maxim that is often required. When
friends compromise quickly because they want to avoid conflict and minimize threat of
impasse, they are likely to leave value on the table. The need for friends to maintain the illusion

Copyright ©2015 Pearson Education, Inc.

 Chapter 6 – Test Bank - Establishing Trust and Building a Relationship 6

of agreement means that important differences in preferences, interests, and beliefs are often
downplayed or buried. (pp. 140-147)

5. In contrast to friendship negotiation, businesspeople are much more likely to use an exchange
norm by which everything is reduced to a single metric allowing for comparison. Advantages:
Businesses are generally organized around rank and status, but being in a hierarchical
relationship may help to expand the pie. Disadvantages: We like our friends, but we do not
necessarily like the people with whom we do business and negotiate. Levels of cooperation
decrease as social distance increases and when reaching agreement is important, negotiators
who have a relationship are more likely to reach a win-win agreement. (pp. 144-146)

6. Some of the psychological mechanisms for building trust are: taking advantage of the similarity-
attraction effect and the mere exposure effect, increasing one’s physical presence to the other
party, using the reciprocity principle to your advantage, schmoozing, flattering the other party,
mimicking and mirroring the other party, and the self-affirmation technique. (pp. 130-134)

7. The power or status differential between people is significant when interpreting ambiguous and
negative social interactions between high and low power individuals because the low-power
person is susceptible to paranoia. The high-power person who does not receive an
acknowledgement from a colleague assigns a situational attribution to the interaction by
interpreting that person as having a busy day or not even being aware of the other person. In
contrast, the low-power person reacts to this lack of acknowledgment by becoming upset, and
assigning a negative dispositional attribution like arrogance, or passive-aggressive punishment
to the high-power person. (p. 135)

8. Negotiators who reach an impasse find themselves getting caught in “distributive spirals” in
which they interpret their performance as unsuccessful, experience negative emotions, and
develop negative perceptions of their negotiation counterparty and the entire negotiation
process. Moreover, negotiators who reach an impasse in a prior negotiation are more likely to
do the same in their next negotiation or to reach low-value deals compared to negotiators who
were successful in reaching agreement. If a negotiator has “baggage” from the past, it affects his
or her ability to go forward and makes the negotiator less likely to trust anyone in the future.
(pp. 140-141)

Copyright ©2015 Pearson Education, Inc.

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