The shift from the transaction marketing paradigm containing

The shift from the transaction marketing paradigm containing concepts such as e.g. the marketing mix - to a relationship marketing paradigm. What does this mean? How do these paradigms differ, and why has this shift come about?

Solution

Answer:

Traditional marketing concept that focused on consumer marketing did not consider relationship as a crucial factor in the exchange process.

Relationship between exchange parties is crucial to a successful transaction. One party will not exchange with another party under poor relationship unless there is implicit value that no other parties are able to provide, or there are motives that other parties are unable to satisfy. In any transaction, people are at the center of the social interaction.

This shift came about when the competion in the market became so severe that it became imparative for the firms to diierentiate with some innovation in the way they were catering the needs of their customers. Then came the concept of relationship marketing.