Dimensionality of quality from a customer perspective in the wood industry

Abstract

This research analyzes product quality from a customer perspective in the case of the wood products industry. Of specific interest is to understand better how environmental quality is perceived from a customer perspective. The empirical material used comprises four datasets from Finland, Germany and the UK, collected during 1992 – 2004. The methods consist of a set of quantitative statistical analyses. The results indicate that perceived quality from a customer perspective can be presented using a multidimensional and hierarchical construct, with tangible and intangible dimensions, that is common to different markets and products. This applies in the case of wood products but also more generally at least for some other construction materials. For wood products, tangible product quality has two main sub-dimensions: technical quality and appearance. For product intangibles, a few main quality dimensions seem detectable: Quality of intangibles related to the physical product, such as environmental issues and product-related information, supplier-related characteristics, service and sales personnel behavior. In the case of wood products, environmental quality and information are often perceived as being inter-related. Technical performance and appearance are the most important considerations for customers in the case of wood products. However, organizational customers in particular also clearly consider certain intangible quality dimensions to be important, such as service and supplier reliability. The high technical quality of the tangible product may be considered as a “license to operate”, but product appearance and intangible quality provide potential for differentiation for attracting certain market segments. Environmental quality may not have been used to its full extent to attract customers, and one possibility is to increase the availability of the environment-related information, or to develop environmentrelated product characteristics to also provide some specific individual benefits. The results indeed indicate that wood products markets are segmented with regard to quality demands.