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1 abstract This study aims to explore the influence of customer relationship management (CRM) on the relationship marketing effect (RME) and business performance (BP) for hotels and motels in Taiwan, and compare the differences between the two. After surveying 224 hotels and 114 motels, the study establish a CRM effect model and finds that the implementation of CRM can have a significant and positive impact on the RME and BP for both types of establishments. 2 Research motive Few research focus on the detail comparison of hotels and motels industries on the relationship among CRM, relationship marketing effect and business performance. 3 Research purpose (1)To explore the impact of CRM on relationship marketing effect. (2)To investigate the impact of relationship marketing effect on business performance. (3)To model the relationships among CRM, relationship marketing effect, and business performance. (4)To compare the differences between motels and hotels with regard to the strengths of the relationship paths in their respective models. 4 Literature review 5 Literature review 2.1. CRM (customer relationship management) divides CRM into two dimensions: Customer relationship planning (CRP) Customer interaction system (CIS) 6 Literature review CRP consists of three functions: Customer analysis. Campaign management. Celationship optimization. CIS comprise the four building functions: Field sales. Telesales. Call center. Web. 7 Literature review 2.2. RME (relationship marketing effect) Present four characteristics for evaluating RME: Utility and project ability. Concepts of the time continuum dimension. Legitimacy. Reciprocity. 8 Literature review 2.3. BP (business performance) That BP consists of three dimensions: Financial performance. Operational performance. Organizational performance. This study divides BP indicators into two types: Financial. Non-financial. 9 Research hypotheses 3.1. The influence of CRM on RME (H1) H1a. The customer relationship planning (CRP) dimension of CRM has a positive and significant influence on the utility dimension of RME. H1b.The customer relationship planning (CRP) dimension of CRM has a positive and significant influence on the project ability dimension of RME. H1c.The customer relationship planning (CRP) dimension of CRM has a positive and significant influence on the legitimacy dimension of RME. H1d.The customer relationship planning (CRP) dimension of CRM has a positive and significant influence on the reciprocity dimension of RME. 10 Research hypotheses 3.1. The influence of CRM on RME (H2) H2a. The customer interaction system (CIS) dimension of CRM has a positive and significant influence on the utility dimension of RME. H2b. The customer interaction system (CIS) dimension of CRM has a positive and significant influence on the project ability dimension of RME. H2c. The customer interaction system (CIS) dimension of CRM has a positive and significant influence on the legitimacy dimension of RME. H2d. The customer interaction system (CIS) dimension of CRM has a positive and significant influence on the reciprocity dimension of RME. 11 Research hypotheses 3.2. The influence of RME on BP (H3.H4) H3a. The utility dimension of RME has a positive and significant influence on non-financial BP. H3b. The utility dimension of RME has a positive and significant influence on financial BP. H4a. The project ability dimension of RME has a positive and significant influence on non-financial BP. H4b. The project ability dimension of RME has a positive and significant influence on financial BP. 12 Research hypotheses 3.2. The influence of RME on BP (H5.H6) H5a. The legitimacy dimension of RME has a positive and significant influence on non-financial BP. H5b. The legitimacy dimension of RME has a positive and significant influence on financial BP. H6a. The reciprocity dimension of RME has a positive and significant influence on non-financial BP. H6b. The reciprocity dimension of RME has a positive and significant influence on financial BP. 13 Research hypotheses 3.3. The influence of financial BP on non-financial BP H7. Non-financial BP has a positive and significant influence on financial BP. 14 Research hypotheses 3.4. Comparing hotels and motels H8. The relationships among CRM, RME, and BP differ significantly between hotels and motels. 15 Reserach method 16 Result Analysis 5.1. Reliability and validity analysis(1) 17 Result Analysis 5.1. Reliability and validity analysis(2) 18 Result Analysis 5.1. Reliability and validity analysis(3) 19 Result Analysis 5.1. Reliability and validity analysis(4) 20 Result Analysis 5.1. Reliability and validity analysis(5) (< 3.0) (> 0.9) (> 0.8) (> 0.9) (< 0.95) (< 0.05) (< 0.05) 21 Result Analysis 5.2. Competing model analysis 5.2.1. Path analysis for hotels 22