Effect of wood attributes on the price persistence of acoustic guitars

Abstract

Wood attributes are important, because they directly affect the price persistence of wood products. Consumers consider the “aesthetic,” “traditionality,” “decay resistance,” and “scarcity” attributes important when evaluating wood. This study analyzed the impact of these four attributes on the price persistence of acoustic guitars. We obtained data from a Japanese internet auction platform and winning-bid data for two representative brands, Martin and Yamaha. We performed a quantitative analysis using the winning bid price as the dependent variable and the adoption of various wood attributes in each part of the guitar corresponding to the four attributes as explanatory variables. We found that rosewood, mahogany, palisander, and ebony have a significant impact on price persistence, and that all of them fit the four attributes of traditionality, decay resistance, scarcity, and aesthetics. We also found that traditionality was the key attribute among the four. Using wood in luxury brands without traditionality was not effective, even if other attributes were present. For mass-market brands, scarcity and decay resistance had positive effects on price persistence. The finding that scarcity and decay resistance were important only for mass-market brands can help companies understand market demand, determine product attributes, and achieve product–market fit.