The Effect of Relationship Marketing towards Costumer Satisfaction and Customer Loyalty on Franchised Retails in East Java

This study aimed to analyse the effect of relationship marketing on customer satisfaction, customer satisfaction and customer loyalty on franchised in East Java. Specifically, the study analyse (a) the direct effect of relationship marketing on customer satisfaction and customer satisfaction and customer loyalty.This study also discussed and (b) indirect effect between of relationship marketing on customer loyalty. To determine the sample of this non-probability sampling study, purposive sampling method was applied. The sample was all customers who have conducted shopping transactions in franchised retails. With the Path Analysis technique, 100 respondents were involved. The analysis shows that relationship marketing plays as an ongoing process that requires a company to establish communication. Relationship marketing is more than just creating short-term transactions, but also building a long-term relationship with customers. A good relationship marketing, which meets the expectations of customers, is able to encourage the desire to continue to do transactions, respond to complaints of services, improve a long-term relationship and mutual trust, and keep the communication to flow well. This eventually will generate customer loyalty towards franchised retails. DOI: 10.5901/mjss.2016.v7n1p33