Hardwood Lumber Buyer Purchase Attributes and Relationships with Suppliers

Abstract

The purpose of this study was to examine product and supplier attributes that influence purchase decisions of hardwood lumber buyers in the United States. Specifically, this article explores the influence of buyer–seller relationships compared with other attributes. Results of an electronic survey of 78 hardwood lumber buyers in the United States (National Hardwood Lumber Association's hardwood lumber buyers list) show that product quality, followed by relationship with suppliers, overall service, and price are the top four attributes that affect purchase decisions. Respondent hardwood lumber buyers purchased more than 50 percent of their lumber volume in 2006 from their top two suppliers (Supplier 1 accounted for about 32% and Supplier 2 accounted for 19% of the total purchase volume). When comparing their top supplier with their second most important supplier, buyers indicated that the top supplier provided higher overall satisfaction, seemed more willing to invest resources and time, and had a greater long-term focus. Our results indicate that unless a supplier is the top supplier, opportunities for partnership and future profitability may not be realized.