NEGOTIATION SITE SELECTION AND ITS IMPACT ON THE OUTCOME OF PURCHASER-SUPPLIER AGREEMENTS

Abstract

This study investigates the effects of Negotiation sites on purchaser-supplier agreements in the Kenyan private sector. The population of interest for this study was private Supermarkets in Kenya. Data collection was undertaken by surveying several supermarkets in Kenya. A stratified random sampling method was used. The study targeted 100 procurement managers from the supermarkets, out of which after sampling 50 were issued with questionnaires. To ensure the reliability of the questionnaire, test- retest method was used. Descriptive statistics was used. A correlation analysis was also used to determine the relationship between gender and choice of negotiation site. From the findings, many purchasing personnel mostly preferred home turf. This is due to the advantages that accompany the home venue. Neutral place was second and at far the suppliers’ premises (away) was preferred. The choice of venue to hold procurement negotiation entirely lies to both purchaser and supplier. The two should come into an agreement and choose a place comfortable to both. From the findings gender amounted to have no effect on the choice and preference of negotiation sites. This is because both male and female purchaser preferences conformed. Negotiation site is an influencing factor to the other party in a negotiation process. It thus acts as a source of power during negotiation and can be used to compromise or intimidate the other party to a negotiation. In a nutshell, it’s concluded that negotiation sites affect purchaser- supplier agreements. The prices, discounts, offers and concessions pronounced by suppliers are dependent on the place of staging negotiation. The negotiation site also influences the propensity of agreeableness between supplier and purchaser and thus the site can be used as an influencing technique in a negotiation process.