Price versus service satisfaction : the role of direct and indirect leasing in the B2B sector

Abstract

This study investigates the impact of direct and indirect leasing methods on tenant satisfaction in business-to-business (B2B) real estate markets, with a focus on small and medium-sized enterprises (SMEs) in Shenzhen, China. Grounded in transaction cost theory, agency theory, and relationship marketing theory, the research examines how leasing structures influence satisfaction across price, service quality, and overall tenant experience, while exploring the moderating effects of firm-level attributes. Using survey data from over 300 Shenzhen-based SMEs, regression analyses reveal distinct trade-offs between leasing methods. Direct leasing significantly enhances price satisfaction due to cost transparency but reduces service satisfaction by limiting access to professional management. Conversely, indirect leasing improves service satisfaction through specialized intermediaries but increases price dissatisfaction due to agency costs. Moderating effects are identified: sales per capita, employee size, and tenant owner age are found to be significantly shaping the relationships between leasing methods and customer satisfaction, willingness to renew and willingness to recommend, while locality, ownership structure (state-owned versus private), and business sector do not have a significant moderating effect. The study contributes to B2B marketing literature by bridging theoretical gaps between leasing economics and customer satisfaction research. Practically, it offers insights for property managers to optimize leasing strategies under Shenzhen’s evolving regulatory framework, which emphasizes market transparency and tenant protection.