Industrial Revolution: How Trend Shift Relational Exchange to Transactional Exchange

In the definition of relationship marketing we read that relationship marketing is the process of identifying, developing, maintaining and terminating relational exchange to purpose of enhancing performance. In the definition there are two type of exchanges: transactional exchange and relational exchange. Complete Marketing Blog (www.youthhelpers.blogspot.com)



From the beginning of 20th century there was huge focus on industries. Previously world economy relied on agriculture. Agricultural products was on highest demand. There was fights on agricultural land. Great Britten England captured India just because of it fruitful agricultural land. But with the start of industrial revolution, trend shifted from agriculture towards industry. People walked to the cities and transportation system got progress. Heavy industries were made till the technological revolution comes at the start of 1970’s. Complete Marketing Blog (www.youthhelpers.blogspot.com)

A general opinion about exchange is people were in the transactional exchange at the start. But theory said that this is wrong. Let me explain it. Could you think that in the barter system, when people exchange goods with goods, they just meet once in a life? No, because resources were too less to consume and necessities were definitely large so people tried to make relationship for longer period so they easily made their transaction. Complete Marketing Blog (www.youthhelpers.blogspot.com)

With the beginning of industrial revolution, when transportation system became so fast and quick and people were focusing on cities, then companies just started heavy production at massive level. With the help of transportation system it was so easy to reach the customer so at that time companies produced mass level production and sell it, just sell it. No long term relations were made in production era. Main focus were on production. Complete Marketing Blog (www.youthhelpers.blogspot.com)

Then technological revolution came and again people started believe on relationships. Companies try to identify their customers and then build relationships with them for longer period of time. Industrial revolution was focused on production at massive level so there was trend shifted toward transactional exchange. Complete Marketing Blog (www.youthhelpers.blogspot.com)

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