Customer value in the oriented strandboard industry

This study examines the attributes of oriented strandboard (OSB) sheathing that influence OSB wholesale buyers' perceptions of OSB value when choosing alternative OSB products/brands or suppliers in the marketplace. Mail surveys sent to a sample of 323 OSB wholesale sheathing buyers in the roof, wall, and floor segments in North America in Fall of 2003 generated a response rate of 22.3 percent (n = 72). The responding wholesale buyers represent 330 million square meters (10-mm thickness basis) of OSB sheathing products purchased in 2002. As expected in a commodity forest product, survey results indicate that price plays an important role in influencing wholesale buyers' perceived value of OSB sheathing. However, the value derived from low price by the OSB wholesalers is not as important as service and supplier attributes such as on-time delivery and personal relationship with the OSB supplier firm. In addition to the three attributes (delivery time, relationship, and price), packaging (in roof/wall sheathing segments) and brand image (in the floor sheathing segment) also significantly contribute to the value perceptions of responding OSB wholesale sheathing buyers. Study findings show that the perceived value of an OSB supplier and their sheathing products and services positively affects the volume of OSB purchased from that supplier. In other words, OSB wholesale buyers' largest supplier, accounting for 58 percent of their volume of OSB purchased in 2002, is perceived as their highest valued supplier for OSB sheathing products and services (a calculated value score of 2.4) compared to their second largest supplier (23 percent of OSB purchased in 2002 and a value score of 1.9) and their third largest supplier (accounting for 13 percent of OSB purchased in 2002 and a value score of 1.75).