ABSTRACT

Grönroos (1994) suggests a transaction-type strategy for fast-moving consumer goods (FMCGs) and a relationship strategy for service firms. However, due to supplementary services to products, and vice versa, items may move along this continuum depending on what they comprise. For example, airlines may take you from A to B, but will offer you various in-flight products which augment the core

Table 1 Key differences between transactional marketing and relationship marketing

Transactional marketing Relationship marketing

Focus on single sales Focus on customer retention Orientation to product features Orientation to customer value Short time scale Long time scale Little emphasis on customer service High customer service emphasis Moderate customer contact High customer contact Quality is primarily a concern of Quality is the concern of all production

Limited customer commitment

Source: Payne (2000).