Analysis of negotiation strategies between buyers and sellers: an applied study on crop protection products distribution

Abstract

This paper aims to analyze how buyers and sellers use trading strategies considering the relationship between them and the transaction sequence. It also focuses on assessing what are the reasons associated with the use of each strategy. For this, we used a multiple case study method, analyzing the negotiations between distributors of inputs and rural producers. We studied 13 cases with a dyad approach (buyer's and seller's view on the same trading). Data were collected from interviews with the parties in six distributors, three in Brazil and three in the United States. The main result is that due to the importance of the relationship, the parties opt to use, in most of the time, integrative strategies. On one hand, in some cases sellers are willing to give up part of their earnings in order to maintain share in the customer purchases or due to a focus on the relationship continuity. On the other hand, in some cases producers tend to compete, seeking to protect their interests and the profitability of their business. Finally, it can be seen that the strategy adopted by the negotiators can change throughout the negotiation process, emphasizing the dynamic aspect of negotiation, being the central contribution of the study.