The theoretical perspective on service quality and promotional incentives in customer satisfaction and customer loyalty has been reviewed to critically analyze and synthesize the existing theories on the relationship between service quality and promotional incentives in the realization of fulfilling customer satisfaction and customer loyalty. The following theories are reviewed: The Value Percept Theory and The Attribution Theory are reviewed under Customer Satisfaction, Social Exchange Theory and Cognitive Dissonance Theory are reviewed under customer loyalty, meanwhile, Service Quality Dimension Theory and Expectation-Perception Gap Model are reviewed under Service Quality, and finally B. F. Skinner’s ‘Reinforcement Theory of Motivation and the Game theory are reviewed under promotional incentives theory. In this paper, an endeavor has been made to provide an overview of various aspects of service quality and promotional incentives in customer satisfaction and customer loyalty through the review of existing theories in the literature.