Shifts of Guests’ Perception on Drivers of Customer Equity for Loyalty over Time: A Multiple Mediation Analysis

Abstract

ABSTRACT This study aims to explore a model of customer equity and to examine the moderating effects of relationship age on relation between drivers of customer equity and customer loyalty for chain hotels. Data were collected from 947 guests at five stars of chain hotels which are located in Busan, South Korea and analyzed using structural equation modeling. A developed model endorsed that all three key drivers of customer equity were significant factors to develop customer loyalty in chain hotels and especially guest perceived value equity as the most forceful factor for loyalty development. The guests’ perception on drivers of customer equity for loyalty development shifts over time. Guests with early years of relationship with a chain hotel perceived value equity as the most influential driver for loyalty, those with middle years of relationship considered relationship equity as, and those with mature years of relationship rated brand equity as. This article ends with more of discussions for the implications and directions of future study.