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Customer Equity Models for Mainland China and Taiwan's Economy Hotels

The economy hotel industry in Mainland China has grown rapidly in the last 20 years. At the same time, Taiwan has aggressively marketed development for the last five years. This work develops a customer equity model for economy hotels and compares model differences for Mainland China and Taiwan. In total, 297 completed questionnaires were collected in Mainland China and 318 in Taiwan. Model testing was conducted through structural equation modeling (SEM). Analytical results reveal that travelers focused more on relationship equity and brand equity in Mainland China, while travelers in Taiwan focused on value equity and brand equity, and that strengthening these will strengthen customer equity. Finally, implications and suggestions for future research are discussed.