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BACKGROUND
Purchasing negotiation is the art of arriving at a mutual agreement with suppliers by means of bargaining on the essentials of a purchasing contract, such as specifications, quality assurance, price, payment terms, and delivery schedules.[1] As such, the effectiveness of purchasing negotiation depends largely on a buyer's ability to establish bargaining strength. The buyer's bargaining power, however, cannot be strengthened without knowing exactly what negotiation latitude he or she has to work with - and which variables constitute the basis of that latitude. Examples of those variables include the extent of competition, adequacy of cost/price analysis, ...