The competitive position of wood as a residential siding material

Perceptual mapping, a consumer-based modeling technique adopted from consumer-related fields, is demonstrated to have diagnostic and strategic applications in the forest products industry. The technique is used to evaluate the threat of substitute products, an important competitive force acting upon all wood products, and to guide product positioning and new product strategies. Consumer perceptions are used to evaluate the threat that non-wood materials pose to solid wood, hardboard, and plywood sidings. Four hundred twelve professionals (homebuilders, remodelers, and siding contractors) nationwide rated 7 siding materials on 11 attributes. A perceptual map was constructed using multiple-discriminant analysis, and preferences were used to locate ideal points. Comparisons of users and non-users of each product are made, and general guidelines for using the perceptual map for positioning, promotion, and new product strategies are given. Negative perceptions of all wood products exist in terms of maintenance and weather resistance. Solid wood holds a niche in appearance/status, and remains competitive against brick because of brick’s application cost. While solid wood siding remains relatively free from substitution threats, vinyl’s threat would increase if repositioned to enhance its appearance/status. Vinyl poses a considerable threat to hardboard and plywood. While plywood has a small perceived advantage in application cost, hardboard’s lack of competitive advantage and position relative to vinyl makes it particularly vulnerable to vinyl substitution.

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