Elements of Transactional & Relationship Marketing Differences:

Transactional marketing

  • Orientation to single sale
  • Emphasis on single transactions
  • Discontinuous customer contact
  • Focus on product features
  • Short time scale
  • Little empahsis on customer service
  • Limited commitment to meeting customer expectations
  • Quality perceived as a concern of production staff

Relationship Marketing:

  • Orientation to customer retention
  • Emphasis on lifetime value
  • Continuous customer contact
  • Focus on customer value
  • Long time scale
  • High emphasis on customer service
  • High commitment to meeting customer expectations
  • Quality as the concern of all staff

List the difference in Transactional and relationship Marketing


Sheth (2000)

Three unique aspects to Relationship Marketing:

  1. one-to-one relationship between the marketer and the customer, on an individual level, not aggregate like a segment
  2. interactive process rather than an exchange, traditional marketing is based on exchange and transactions, while RM is based on interaction and activities
  3. it is value-added activity, through mutual interdependence and collaboration between suppliers and customers

Main drivers for RM:

  • Sustained value to key-stakeholders

RM perspectives:

  • Connected networks where interdependence and co-operation develop RM strategy

Appropriateness of RM


To develop and use resources and competencies to create value

Source of Transactional & Relationship Marketing Differences:

Based on Payne (1995)