Can positioning strategies help influence willingness to pay for office space? Evidence on the moderating effect of office space grade and industry sector for occupiers of leased office space

ABSTRACT

This study examines the applicability of self-congruity theory with positioning strategies across office spaces types (Grade A and Non-Grade A) and sectors of the office space occupiers (Finance and Office & Gas Sectors) and the corresponding impact on rent performance through examining willingness to pay for different office spaces. Data were analysed using Partial Least Squares-Structural Equation Modeling via SmartPLS. The findings suggest that there are observed heterogeneity expectations of office grades and sectors about the benefits of positioning strategy towards the willingness to pay for different office spaces. The benefits sought by Grade A office occupiers are found to be Brand Name, Selectivity, Services, and Top of the Range; while Non-Grade A office occupiers pursue after Reliability, and Value for Money. The benefits sought by the Oil & Gas sector are Attractiveness, Selectivity and Services; while the Finance sector prefers spaces denoted as providing Reliability, and Value for Money.

KEYWORDS:

• Self-congruity theory
• positioning strategies
• willingness to pay
• office grade
• PLS-SEM

Disclosure Statement

No potential conflict of interest was reported by the author(s).