The Relationship between Customer Equity and Satisfaction Experienced by Domestic Tourists Staying at Five- star Hotels of Tehran

Abstract

In marketing texts, value equity, brand equity, and relationship equity are frequently discussed as the three main dimensions of customer equity, which directly influence companies’ profitability. Satisfaction, the consequent loyalty, the repeated purchasing by customers, and finally the profitability, are objectives of all service and non-service organizations, which can be achieved by programming and continuously surveying on marketing activities.The present research is a survey type research and uses questionnaire to measure the effects and relationships of three major principles of equity with satisfaction level apprehended by domestic tourists that had stayed at least one night in one of the five-star hotels of Tehran in our research period. The sample population includes 267 individuals. Data were statistically analyzed by structural equation modeling. Results have manifested direct and meaningful effects of value equity, brand equity and relationship equity variables on the tourists' satisfaction level. 44% of the changes in the customers' satisfaction were reported to be due to these three variables, therefore it is proposed to improve these three dimensions of customer equity in order to increase and enhance tourists' satisfaction.

Keywords

• customer equity
• value equity
• brand equity
• relationship equity
• satisfaction