Using quality function deployment to achieve a market orientation: An application with wood products companies

Wagner, E R (2003) Using quality function deployment to achieve a market orientation: An application with wood products companies. PhD thesis, Oregon State University, USA.

Abstract

This document presents a new method for improving the market orientation of companies. In that regard, I developed a new Quality Function Deployment application (QFD), which compares customer needs with company competitive advantages, in order to determine those advantages that best satisfy customer wants and needs. The methodology was applied to the wood products industry. Companies from this industry are facing a new competitive environment, with challenges from overseas companies, fierce competition from substitute products, concentrated channel power from big box retailers, and the lobby of environmental groups, to name a few. Wood product companies, traditionally production and cost-driven, would really benefit of an effective method for improving their customer orientation, while keeping an eye on substitute materials. The study is cross-cultural including the US and Chile. The first part of the study included 37 qualitative interviews and almost 1300 mail questionnaires targeting architects of both countries, selected as key customers of the wood products industry. The second part of the study consisted of interviews with top wood products company executives. I performed 8 interviews in Chile and 35 in the US. The sample covered 37% of the US annual sales of wood products. The interviews provided the competitive advantages of the companies. Finally, an expert team assisted in developing a new QFD application, which used the results of both the architect and the company study. I determined that architects of both countries are rather similar: they are concerned about the diminishing quality of wood materials and they appreciate “honest” materials (the material is what it seems to be). The two groups differ with respect to environmental issues, which are far less important for Chilean than for U. S. architects. The results suggest a focus on product and business innovation by US wood products companies, as these topics present great potential for improvement. US companies should also become more global, as this characteristic allows a better customer focus and an improved competitive position. Chilean companies should focus their efforts in all types of innovation, and not rely only on their current low-cost producer advantage.

Item Type: Thesis (Doctoral)
Thesis advisor: Hansen, E N
Uncontrolled Keywords: Chile; architect; competition; innovation; market; quality function deployment
Index terms: quality function deployment, Chile, architect, executive, lobby, wood, competitive advantage, competition, questionnaire, methodology, environmental issue, interview
Subjects: data collection methods, profession, traditional and composite building materials, practitioner, environmental issues, research methods, architectural elements, Geography, market analysis, quality assurance
Topics: Roles and Professions, Construction Materials, Research Practice, Design Practice, Sustainability, Geographical Context, Quality Management
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here