From transactional marketing to relationship marketing: A paradigm shift in business thinking and practices
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Ilorin Journal of Management Sciences
In response to the dynamic and competitive nature of the contemporary business environment, the transactional approach of attracting and retaining customers, through advertisement, sales promotion among others, are becoming inadequate in engaging customers for profitable growth. Against this background, this paper examines “relationship marketing” (RM) as a paradigm shift from the philosophical perspective of acquiring to retaining customers for mutual benefits. This paper employed descriptive research approach, using mainly secondary sources of information. The paper discovered that the frontier of relationship marketing in the contemporary literature has undergone dramatic changes in terms of approaches and applications. The paper also provided a strong confirmation of trust, familiarity, commitment, marketing communication, shared values, reciprocity and bonding as the major variables that are associated with relationship marketing success. Thus, these variables are necessary for building and enhancing stronger business relationships between firms and customers. The paper concluded that relationship marketing as opposed to transactional marketing encompasses mechanisms that focus solely on how firms can build sustainable mutual relationships with customers. On the basis of the aforementioned conclusion, the paper recommended that: (i) firms must be committed to relationship building to be able to influence and drive customers’ value, and (ii) the success of the RM practices significantly depends on mutual interdependence between organisation and their customers.
Transactional marketing , Relationship marketing , Paradigm shift . , Exchange , Traditional marketing approach
Rahim, A.G., & Omoera, C.I. (2018). From transactional marketing to relationship marketing: A paradigm shift in business thinking and practices, 5(1), 42-60