Negotiation is a process of formal communication where two or more people come together to seek mutual agreement over an issue or issues. Negotiation is particularly appropriate when issues besides price are important for the buyer or when competitive bidding will not satisfy the buyer’s requirements on those issues.

Source: Monczka, R., Trent, R., & Handfield, R. (1998). Purchasing and Supply Chain Management. Cincinnati, OH: South Western College Publishing.