Investigating the relationship between customer equity and the performance of Parsian International Hotels Corporation

Abstract

The purpose of this research was to investigate the relationship between customer equity and the performance of Parsian International Hotels Corporation. For this reason it’s an applied and descriptive research. A review of the current literature revealed three key determinants of customer equity: (1)value equity, (2) brand equity and (3) relationship equity. In order to examine the proposed hypothesis Structural Equation Modeling (SEM) was run using a sample of 384 guests of Parsian hotels.The main data were obtained from a questionnaire. The results demonstrate that value equity and brand equity are positively correlated with financial and non-financial performance of Parsian hotels. Also it was found that despite positive relationship between relationship equity and financial performance, this factor is not correlated with non-financial performance.

Keywords

• value equity
• Brand equity
• relationship equity
• Customer equity
• financial and non- financial performance