Forest Owners’ Socio-demographic Characteristics as Predictors of Customer Value: Evidence from Finland

Abstract

Ageing, urbanization, and decreasing dependence of non-industrial private forest (NIPF) owners on forestry income have challenged the industrial timber supply of several developed countries in Europe and the US. NIPF ownership objectives have gradually also become more diverse in Finland, emphasizing the non-timber amenities of forests. The objective of this paper is to build a more in-depth understanding of NIPF owner objectives, and how information on owner attributes could be used in developing and marketing forestry services. The paper reports results from a survey of NIPF owners conducted in Finland in 2011 (n = 557). According to the results of an exploratory factor analysis a four-dimensional structure of NIPF owner objectives exists, illustrating how a traditional monetary value orientation is only one of the four forest ownership motives. In particular, while aesthetic values and biodiversity conservation are key forest ownership motivations for a segment of NIPF owners, these aspects are not yet fully covered by dominant forestry service organizations. The results therefore offer some understanding why currently available service offerings are failing to meet the objectives of some NIPF owners. From the perspective of developing new business models, recognizing customer pressure towards more diversified service offerings would appear to be essential.