**Abstract**

Climate changes point to the needs to find sustainable materials for residential multistorey housing as a growing proportion of populations across the world live in urban areas. Despite positive environmental effects, wood has a limited use in multistorey constructions even in countries with a strong tradition to use wood in residential housing, such as Sweden. As new materials, techniques were developed and studies of properties of wood as a construction material were communicated, and legislation was altered in Sweden in the mid-1990s, allowing for the use of wood in multistorey housing. The expected market growth was slow and uneven even when incentivizing programs were developed. This chapter explains consumer perspectives in a town, Växjö, where the tradition of using wood in multistorey construction is strong. It points to the needs of knowing more about consumers' perspectives—in order to communicate added values, that is, environmental benefits, in suitable market channels.

**Keywords:** consumer perceptions, product-dominant logic, residential construction, service-dominant logic, sustainable development

### **1. Sustainable development in residential construction**

The world population is projected to increase by more than 1 billion people in the next 15 years, reaching 8.5 billion in 2030 and 9.7 billion in 2050 [1]. This forecasted growth in population points to an increase in demand for housing where a growing proportion of the population will live in cities. The projection points to an increase from the current 54 to 66% living in cities by the middle of this century [2]. Cities will continue to be the arena for residence and for commercial activities, a place with needs for sustainable changes.

Sustainable construction, for residential and commercial needs, can be seen as an opportunity for the construction industry. According to Bordeau [3, p. 364], the main challenge is "*to transform the demand for sustainable development into an opportunity, to create and access new markets, and to innovate responses which satisfy traditional industry demands and the new societal demands for sustainable development*." It is claimed that the construction and utilization of buildings could be reduced as much as 40% of the energy consumption, the use of extracted materials can be reduced by 50%, and the total GHG emission could be reduced 35% [4]). The call for sustainable methods in construction is clear, and goals are set up globally in Sustainable Development Goals as well as locally in political goals and corporate objectives.

#### *Timber Buildings and Sustainability*

In recent years, a positive spread of wooden multistorey construction (**WMC**) in the Nordic countries points to business opportunities as part of an emerging forestbased bioeconomy [5]. However, changes in construction practices in multistorey construction for residential use are slow. The aim of this chapter is to explain factors that influence consumer behavior, focused on purchasing an apartment in a wooden multistorey construction (house), which ultimately may decide how markets for WMC develop.

The following text starts with a brief overview of factors that influence the development of markets for wood-based residential construction. Perspectives on wood as a construction material, policy aspects, and market development serve as a background for understanding how consumer perceptions are developed. The following subchapters account for a theoretical understanding of consumer behavior, an empirical study in light of local market development and a discussion of what can be learned from the case study with regard to the consumers' roles in the development of markets for WMC. A case study of Växjö in Sweden serves as inspiration for learning about market development for WMC.

#### **1.1 Construction materials**

Perceptions of physical properties of wood-based materials influence the current practices as well as the development of policies that regulate the use of wood in construction. Properties of wood can be divided in accordance with a number of factors related to, for example, the production of the raw materials (wood), use of raw materials in construction of houses, use of the house or the apartment in the house itself, and last but not least, deconstruction of the house when it is no longer needed. A brief overview of wood properties that have a bearing on its use in construction from a product-dominant logic perspective is provided in **Table 1**.

The list of characteristics of wood can be made much longer, but these properties have a bearing for the empirical study and the context in which it is conducted (Sweden). The perceived characteristics are by no means static, which indicate that as new technologies, products as well as techniques, are developed, some of the perceptions of wood are renegotiated, which may lead to changes in policy and legislation.

#### **1.2 Markets**

Historically, wood and stone have served mankind as construction materials for residential housing as well as commercial buildings. The tradition of building residential single houses in wood is well established in Sweden [6] where about 90% of new residential houses are built in wood (wooden frames and/or wood exterior and interior as a major part of the construction material). However, the development of multistorey constructions has been slow in progress in spite of promotional activities to spur market development.

Since 1994 when the legislation for multistorey construction was altered in Sweden, to allow for wood as a construction material (again) in multistorey housing in Sweden, the market has been very slow in development. Promotional activities sanctioned by the Ministry of Industry in 2002 were followed up by more local initiatives, neither of which led to any major market developments. Lately, however, additional governmental efforts, based on political objectives in line with Sustainable Development Goals (**SDG**) and an increased insight in how forestry may serve in the development of bioeconomies, are made to promote wood as a construction material for WMC, for local as well as international markets [7].

**57**

*Communicating Added Value in Wooden Multistorey Construction*

objectives and agendas

architectural practices

on-site assembly

frames

**Characteristics Effects Perspective**

Carbon sink, an arena for ecosystem services (other productions on the same land), part of bioeconomy system and partial solution to some of the Sustainable Development Goals (SDGs) in more local political

Traditional material that is culturally grounded and part of

Skills are well developed for family housing construction

Suitable (light weight) material for prefabrication and fast

Product and process innovation has paved the way for fireresistant alternatives and safe use of wood in construction

Offers possibilities for modular prefabrication construction

Flexibility in the construction process makes it easier to adapt to the physical context for the construction. Wood is also a lighter material than concrete, which points to

Wood is naturally occurring in Sweden and the ownership structure promotes development of markets. In the future, forest-based resources may be given additional importance

but less so for multistorey house construction Part of the local construction culture

where the efficiency in material use is higher

usefulness when the grounds are not stable Wood materials offer a nice atmosphere when used internally in a construction. Moisture, fire, and sound properties need to be taken into account in the adaptation

of the production as well as use of the house

as part of creating bio-based economies

*Perceptions of wood properties in light of use in multistorey construction based on a review with minor* 

Society

Society Industry Consumer

Society Industry Consumer

Society Industry Forest owner

With a forecasted annual need for 93,000 new homes per year in Sweden, the predicted construction of 120,000 homes for 2018–2019 does not cover the forecasted market needs. Of these new homes, about 10% are currently flats in WMC apartment houses [6]. With an understanding of wood as a construction material and a political will to develop WMC markets, what are the views of consumers?

Consumers' views are greatly influenced by norms in society [8]. An increased awareness of human influence on sustainable development is reflected in societal dialog in channels such as media, social media, NGO influences, and more traditional elements of culture such as family and traditions. Consumer expectations, values, and communicational traditions are therefore of tremendous importance for understanding decision-making in purchasing an apartment (often referred to as an

Communication is seen as key in the purchasing process since it concerns a lot of money, and a product that consumers may not be capable of evaluating all aspects of *ex ante*. We assume that consumers need information to make a well-grounded decision about a major investment, their new home [9]. Given the understanding of wood properties, a need for housing, and consumers' need for information about an investment, their home, our aim is to explain the perceived advantages among

**1.3 Needs to learn about consumer perceptions**

apartment owners in wooden multistorey houses.

example of an investment product).

*DOI: http://dx.doi.org/10.5772/intechopen.83498*

Renewable, part of a circular bioeconomy

Traditional and suitable material for house construction

Physical properties with regard to temperature, sound, and weight

Availability and ownership of wood materials

*modifications from Sjöström [6].*

**Table 1.**

*Communicating Added Value in Wooden Multistorey Construction DOI: http://dx.doi.org/10.5772/intechopen.83498*


#### **Table 1.**

*Timber Buildings and Sustainability*

**1.1 Construction materials**

WMC develop.

legislation.

**1.2 Markets**

activities to spur market development.

In recent years, a positive spread of wooden multistorey construction (**WMC**) in the Nordic countries points to business opportunities as part of an emerging forestbased bioeconomy [5]. However, changes in construction practices in multistorey construction for residential use are slow. The aim of this chapter is to explain factors that influence consumer behavior, focused on purchasing an apartment in a wooden multistorey construction (house), which ultimately may decide how markets for

The following text starts with a brief overview of factors that influence the development of markets for wood-based residential construction. Perspectives on wood as a construction material, policy aspects, and market development serve as a background for understanding how consumer perceptions are developed. The following subchapters account for a theoretical understanding of consumer behavior, an empirical study in light of local market development and a discussion of what can be learned from the case study with regard to the consumers' roles in the development of markets for WMC. A case study of Växjö in Sweden serves as

Perceptions of physical properties of wood-based materials influence the current

practices as well as the development of policies that regulate the use of wood in construction. Properties of wood can be divided in accordance with a number of factors related to, for example, the production of the raw materials (wood), use of raw materials in construction of houses, use of the house or the apartment in the house itself, and last but not least, deconstruction of the house when it is no longer needed. A brief overview of wood properties that have a bearing on its use in construction from a product-dominant logic perspective is provided in **Table 1**. The list of characteristics of wood can be made much longer, but these properties have a bearing for the empirical study and the context in which it is conducted (Sweden). The perceived characteristics are by no means static, which indicate that as new technologies, products as well as techniques, are developed, some of the perceptions of wood are renegotiated, which may lead to changes in policy and

Historically, wood and stone have served mankind as construction materials for residential housing as well as commercial buildings. The tradition of building residential single houses in wood is well established in Sweden [6] where about 90% of new residential houses are built in wood (wooden frames and/or wood exterior and interior as a major part of the construction material). However, the development of multistorey constructions has been slow in progress in spite of promotional

Since 1994 when the legislation for multistorey construction was altered in Sweden, to allow for wood as a construction material (again) in multistorey housing in Sweden, the market has been very slow in development. Promotional activities sanctioned by the Ministry of Industry in 2002 were followed up by more local initiatives, neither of which led to any major market developments. Lately, however, additional governmental efforts, based on political objectives in line with Sustainable Development Goals (**SDG**) and an increased insight in how forestry may serve in the development of bioeconomies, are made to promote wood as a construction material for WMC, for local as well as international

inspiration for learning about market development for WMC.

**56**

markets [7].

*Perceptions of wood properties in light of use in multistorey construction based on a review with minor modifications from Sjöström [6].*

With a forecasted annual need for 93,000 new homes per year in Sweden, the predicted construction of 120,000 homes for 2018–2019 does not cover the forecasted market needs. Of these new homes, about 10% are currently flats in WMC apartment houses [6]. With an understanding of wood as a construction material and a political will to develop WMC markets, what are the views of consumers?

#### **1.3 Needs to learn about consumer perceptions**

Consumers' views are greatly influenced by norms in society [8]. An increased awareness of human influence on sustainable development is reflected in societal dialog in channels such as media, social media, NGO influences, and more traditional elements of culture such as family and traditions. Consumer expectations, values, and communicational traditions are therefore of tremendous importance for understanding decision-making in purchasing an apartment (often referred to as an example of an investment product).

Communication is seen as key in the purchasing process since it concerns a lot of money, and a product that consumers may not be capable of evaluating all aspects of *ex ante*. We assume that consumers need information to make a well-grounded decision about a major investment, their new home [9]. Given the understanding of wood properties, a need for housing, and consumers' need for information about an investment, their home, our aim is to explain the perceived advantages among apartment owners in wooden multistorey houses.


#### **Table 2.**

*Themes for the interview with residents in apartments in multistorey constructions, in Växjö and theoretical origin for the theme [9].*

#### **1.4 Approach**

An empirical case study was conducted with the ambitions to investigate consumer perceptions of the apartment they own (in a wooden multistorey house) [9]. A small town in Sweden, Växjö, was selected because the WMC tradition was well developed. Växjö is often referred to as "wood construction town", and it is seen as a forerunner for urban development in Sweden.

Three WMCs were selected (Strandsnäckan, Wälludden, and Portvakten), and in these houses, (11, 14, and 17, respectively), randomly selected residents were willing to contribute to the project in an interview (in February–March, 2018). After receiving an informed consent from the respondents and a promise for the respondents to be anonymous, the interview was made as a leisure dialog, based on open-ended thematic questions. Themes for the interview covered were connected to factors that the literature review had pointed to as key for making a residential purchasing decision (**Table 2**).

The result from the interviews in the selected houses and randomly selected residents does not lend itself to generalization. It should be seen as indicative of what might have explanatory power and what we need to investigate further.

#### **2. Understanding consumer perspectives**

Market development can be explained from various perspectives. Policy instruments, such as taxes, information campaigns, and legislation play instrumental roles in promoting desired behaviors. Industrial development such as research and public private partnerships may also account for market development. In this case, our focus rests on the role of the consumer.

#### **2.1 Marketing**

A traditional view of a theory for consumers' purchasing behaviors for investment products is described in these phases [10] as part of a planned behavior (theory of planned behavior):

**59**

*Communicating Added Value in Wooden Multistorey Construction*

IV.Actual purchase of the product or the service

Although the process appears to be linear, it is normally an iterative process, in which the consumer gains additional understanding of choices made and choices to be made. Communication fills important roles throughout the purchasing process [13]. It may seem strange that we did not focus on phase II–IV but rather on V, the after-purchase evaluation in our study. This is explained by our understanding that consumers' postpurchase behavior is assumed to influence their future purchases as well as in their roles as ambassadors, in communication with other consumers.

The marketing mix (product, price, promotion, and place) [10] serves as a starting point in the purchasing process. This model offers an understanding of marketing from a producer perspective. The classical model is reinterpreted, focusing on the four P's in terms of customer perspectives as *customer solutions, customer costs, communications, and convenience* [13] in order to understand consumer views. The big difference in perspective, from P:s to C:s, deserves to be emphasized as it gives the consumer a key role in a possible market development for the WMC apartments.

**3. The housing situation and markets for multistorey construction** 

The markets for residential constructions, houses as well as apartments in multistorey constructions in Sweden, are changing slowly and it does not meet captured in the word, *shortage*. The housing situation varies from one municipality to another, which in part can be explained by political ambitions and by corporate investments. In the metropolitan regions of Stockholm, Gothenburg, and Malmö, housing construction is expected to increase significantly over the coming years to meet the current housing shortage in the country [15] illustrated in **Figure 1**. The needs for residential house construction in **Figure 1** are clear. According to this forecast, some 90,000 additional homes are needed annually between 2018 and 2024 [15, p. 20]. Looking more closely on what has been completed in terms of residential houses since the late 1930s (**Figure 2**) further supports the understand-

**Figure 2** shows the number of apartments and single-family houses since the 1940s in Sweden. The new residential construction has been below the needs of markets since the 1970s. The graph also indicates that since 2010 the rate of construction for multistorey houses (apartment homes) is increasing. In 2017, some 51,500 new homes were completed in Sweden, which is a much needed increase. This is explained by a population growth and continued movement of individuals to urban contexts, especially metropolitan areas, from rural areas. However, even with this increase in new homes, it does not cover the forecasted needs of 90,000 new

A tradition to use wood in house construction in Sweden is well established. Of the approximately 10,000 new single houses that are built in Sweden on an annual basis, some 90% are built in wood [17]. The situation for multistorey construction

*DOI: http://dx.doi.org/10.5772/intechopen.83498*

V.Postpurchase evaluation

**2.2 Marketing communication**

**(WMC) in Sweden**

ing of market development needs [16].

(additional) homes on an annual basis [15].

**3.1 Traditions of using wood in construction**


IV.Actual purchase of the product or the service

V.Postpurchase evaluation

*Timber Buildings and Sustainability*

construction of the house?

wooden house

climate properties)

Awareness of living in a WMC apartment Where did you get information about the wooden

Information about climate-related properties of a

Channel for information (about wood properties and

**1.4 Approach**

*origin for the theme [9].*

**Table 2.**

forerunner for urban development in Sweden.

**2. Understanding consumer perspectives**

our focus rests on the role of the consumer.

II.Searching and gathering information

(theory of planned behavior):

I.Need recognition

III.Evaluating the alternatives

purchasing decision (**Table 2**).

An empirical case study was conducted with the ambitions to investigate consumer perceptions of the apartment they own (in a wooden multistorey house) [9]. A small town in Sweden, Växjö, was selected because the WMC tradition was well developed. Växjö is often referred to as "wood construction town", and it is seen as a

*Themes for the interview with residents in apartments in multistorey constructions, in Växjö and theoretical* 

**Themes for questions Theoretical starting point**

Factors that influenced the decision to buy the apartment *Decision-making* [10, 13, 14]

*Consumer awareness of alternatives in* 

*Information about wood properties* [11, 12]

*Channel for communication* [8]

*consumption* [10]

Three WMCs were selected (Strandsnäckan, Wälludden, and Portvakten), and in these houses, (11, 14, and 17, respectively), randomly selected residents were willing to contribute to the project in an interview (in February–March, 2018). After receiving an informed consent from the respondents and a promise for the respondents to be anonymous, the interview was made as a leisure dialog, based on open-ended thematic questions. Themes for the interview covered were connected to factors that the literature review had pointed to as key for making a residential

The result from the interviews in the selected houses and randomly selected residents does not lend itself to generalization. It should be seen as indicative of what might have explanatory power and what we need to investigate further.

Market development can be explained from various perspectives. Policy instruments, such as taxes, information campaigns, and legislation play instrumental roles in promoting desired behaviors. Industrial development such as research and public private partnerships may also account for market development. In this case,

A traditional view of a theory for consumers' purchasing behaviors for investment products is described in these phases [10] as part of a planned behavior

**58**

**2.1 Marketing**

Although the process appears to be linear, it is normally an iterative process, in which the consumer gains additional understanding of choices made and choices to be made. Communication fills important roles throughout the purchasing process [13]. It may seem strange that we did not focus on phase II–IV but rather on V, the after-purchase evaluation in our study. This is explained by our understanding that consumers' postpurchase behavior is assumed to influence their future purchases as well as in their roles as ambassadors, in communication with other consumers.

#### **2.2 Marketing communication**

The marketing mix (product, price, promotion, and place) [10] serves as a starting point in the purchasing process. This model offers an understanding of marketing from a producer perspective. The classical model is reinterpreted, focusing on the four P's in terms of customer perspectives as *customer solutions, customer costs, communications, and convenience* [13] in order to understand consumer views. The big difference in perspective, from P:s to C:s, deserves to be emphasized as it gives the consumer a key role in a possible market development for the WMC apartments.
