Aiming at tenant satisfaction: Wasted money or profitable business management?
||Kaleva, Hanna; Lahtinen R. and Olkkonen, Olli
||Aiming at tenant satisfaction: Wasted money or profitable business management?
||8th European Real Estate Society Conference (26-29 June 2001) Alicante, Spain
||The emergence of increased customer orientation has been one of main trends in the Finnish property sector in recent years. This trend has been seen in the increased interest in satisfying customersí needs among property investors in order to reach and maintain market positions in tightening competitive environment. Regular measurement of tenant satisfaction has become a commonly used tool in Finnish property business management. In the end, the core question in aiming at improving customer satisfaction is its effects on businessesí profitability. This question has been prevailing in business management literature in recent years. Are satisfied tenants more - or less - profitable than less satisfied? What are the true components behind customer satisfaction among different types of space users? Are tenants really willing to pay for better space and service? What kind of preferences and expectations do the tenants have concerning the relationship and interaction with the landlord? This paper aim at setting a basis for looking for the potential answers for these crucial questions. In this paper, suggestions are made for measuring the impact of different quantitative property business indicators on tenant satisfaction. Paper looks at the relationships between tenant satisfaction and other measures of property businessesí profitability in the Finnish commercial property market. The paper begins with a review on relevant business management literature. Emphasis is put on the description of KTIís relevant databases. Preliminary empirical study is made on the correlation between different measures on cross-sectional data. Preliminary conclusions and suggestions for further research are made on the basis of the results of this study. This paper is a starting point for examining the connections between different indicators of property business' success. A more thorough approach would require analysis of time series of different variables. Therefore, this paper is work in progress with follow-ups to come.
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