International Journal of Scientific & Engineering Research Volume 10, Issue 3, March-2019 826 ISSN 2229-5518 IJSER © 2019 http://www.ijser.org EFFECTS OF INTERN MARKETING AND SERVICE QUALITY ON CUSTOMER RELATIONSHIP QUALITY IN COMMERCIAL BANKS IN KENDARI CITY Melati, Alida Palilati, Endro Sukodjo, Sudirman Zaid Faculty of Economy and Business, Department Management and Business Haluoleo University E-mail : ulfiaisa09@gmail.com Abstract—This This research aims to determine and describe effects of intern marketing and service quality on customer relation quality in commercial banks in Kendari city. These research populations are employees and cus- tomers, namely 190 people. This research used Partial Least Square (PLS) analysis. Intern marketing gives positive significant effects on service quality. Meaning that good intern marketing applied by Commercial bank in Kendari city consisting of rewards and innovation, effective communication, effective em- ployee development, effective employee selection, effective employee recruitment, effective supporting system and healthy work environment can improve service quality given by employees that can be seen in tangibility, reliability, responsiviness, assurance and empathy. Service quality gives positive significant effects on relation- ship quality. Meaning that good service quality given by Commercial banks in Kendari city consisting of tangibility, reliability, responsiviness, assurance and empathy can improve service quality that can be seen from tangibility, reliability, responsiviness, assurance and empathy. Keywords: Intern Marketing, Service Quality, Relationship Quality ——————————  —————————— 1 INTRODUCTION ervice quality obtains special attention from a number of scientists in previous researches. There has been a concep- tualization of service quality in 1980’s at the time Par- asuraman et al. (1988) developing a SERVQUAL model to compare customer perception on the service given by organi- zation with their expectations. Parasuraman et Al. (1988) de- veloped five dimensions to measure service quality; Tangibil- ity, reliability, responsiveness, assurance, and empathy. The intern marketing can be seen since 1970’s that has been found out to solve problems, due to less service delivery by better quality (Panigyrakis, 2009), then company must work hard. Relationship quality means the quality perceived based on an eagerness and closeness of a relationship by both parties. More general concept of relationship quality according to Johnson (1999) in Susanto (2004) is an eagerness and closeness of a rela- tionship between supplier and distributor. In Commercial banks in kendari City, there is a gap of ser- vice quality namely a gap in customer expectation and man- agement perception. Such gap is a result of management mis- understanding on customer whole desire in term of financial matter service that they should obtain in shorter and integrat- ed period of time. The point is that the management has no ideas on what customers expect. Then, there is also a gap of service quality in term of service quality gap in which there are less thorough employees or one with less acquisition on their tasks mainly in term of cashier reporting or conflicts among cashiers. There is also a gap of service delivery with extern communication since the customers have less under- standing on the system of profit sharing given by Commercial banks in Kendari city, so there is a decreased relationship quality in terms of trust, commitment and satisfaction, refer- ring to the data from five past years in which there was a fluc- tuation. In such conditions as has been described above, there is still a disconformity of field conditions; initial survey results found problems in Commercial banks in Kendari city based on direct interviews with head of branch of each Commercial bank in Kendari city; among others are financing in bad credit, conflict in cashier reporting and others. By referring to existing data in Indonesia Bank Kendari city , there was an insignifi- cant development in the last six years but, seeing at the phe- nomena in commercial banks in Kendari city, there was a sig- nificant development in 2014. Problems faced by commercial banks in Kendari city indicate lack of improvement on intern marketing, service quality and relationship quality in Com- mercial banks in Kendari city. A Problem Formulations Problem formulation in this research is: 1. Is there any Commercial Bank internal marketing effect on S IJSER