| Using the relational marketing perspective theory of the firm to establish a theoritical foundation, this study serves to fill a gap in the relationship marketing management literature with respect to service quality and customer loyalty. The sample used for this study consist of 588 respondents from four stars hotel customers in Jakarta. Confirmatory Factor Analyses provided evidence of adequate model fit, convergent and discriminant validity for the underlying variables, and respective factors in the model. The conceptual model and the hypothesized are tested using Structural Equation Modeling. Support was found for the causal relationship between variables in the models that service quality based on relationship marketing by simulant directly had positive contribution on relational quality; relational quality directly had positive impact on customer loyalty; interestingly, service quality had no significant relationship on customer loyalty. It’s showed that hotel industry is quite different from other service industry, and switching cost of four stars hotel customer is relatively lower. This research indicated that the service quality at the four stars hotel are necessary resources to strengthen strategic competitive advantage of the firms. Professionals in the four stars hotel are endeavoring to improve customer relationship and to integrate these service quality and relationship quality activities in the strategy will increase firm’s performance. |