Industrial buying behaviour in the telecommunication market: a case study within Ericsson AB

Industrial purchasing stands for more than half of the whole economic activity in industrialized countries. Therefore it is important to understand how industries perform buying activities. The telecommunication industry is a fast growing industry and therefore interesting to investigate.

The purpose of this study was to investigate the characteristics of industrial buying behaviour in the telecommunication industry. The purpose has been further developed in forms of research questions dealing with the buying process, buying center and choice criteria.

A case study was made with a customer, to the telecom supplier Ericsson, from the company HI3G Access, also known as 3. A highly topical company in the third generation telecom networks with Ericsson as one of their primary suppliers.

The conducted telephone interview indicates a swift buying process, influenced by word of mouth. Additional findings involve a small buying center, which is mainly controlled by the technical and procurement staff and the importance of price as a selection criteria as the product is becoming a commodity.

Author: Tina, Martin; Manaberi, Sam

Source: LuleƄ University of Technology

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