UGC NET COMMERCE June 2019 Q31
- Option : A
- Explanation : Relationship marketing (RM) refers to all marketing activities directed toward establishing, developing and maintaining successful relational exchanges. It is widely held that the majority of marketers are in the transactional, and not in the relationship, mode. Transactional marketing (TM) fundamentally aims at viewing sales as a discrete terminating activity. Relationship marketing on the other hand, treats sales as a continuous relationship that goes beyond the sale. Experts share that TM’s orientation is on product features over a short-term period, while RM’s orientation is on product benefits over a long-term period. The transactional mode pays little attention to customer service and offers limited commitment to the customers. On the other hand, the relationship mode pays greater attention to customer service and commitment. Quality is primarily a concern for production in the former, whereas, quality is the concern of all in the latter. Table below provides the differences between Transactional and Relationship Marketing.
Table : Difference between Transactional and Relationship Marketing
Transactional Marketing Relationship Marketing ∎ Focus is on single sales ∎ Focus is on customer retention ∎ Orientation on product features ∎ Orientation on product benefits ∎ Short-time scale ∎ Long-time scale ∎ Little emphasis on customer service ∎ High customer service emphasis ∎ Limited customer commitment ∎ High customer commitment ∎ Moderate customer contact ∎ High customer contact ∎ Quality is practically a concern of production ∎ Quality is the concern of all
