Abstract:
The goal of this study is to provide a better understanding of new product
adoption by single family homebuilders. Information from this study will be useful to
producers of new and existing engineered wood products in targeting their market
development efforts.
Homebuilders are studied with the goal of segmenting them into groups based on
their openness to new products, or innovativeness. This study evaluates three methods of
measuring this trait. A hybrid innovativeness measure based on the time of adoption of
multiple products was chosen as the best measure. It captures both the time element, and
the degree of adoption element of innovativeness.
Adopter group segments are then profiled based on demographics and
communication characteristics. Innovative firms were found to be larger firms with
higher revenues. They were also more likely to build higher end homes and to work
primarily in new home construction rather than remodeling or commercial construction.
Most early adopters come from counties of medium sized populations, while later
adopters are more likely to be from large counties.
Early adopters scored higher than later adopters on a measure of opinion
leadership. They also were more likely to indicate that the use of new products was a
part of their firm's competitive premise.
