Exchange:-
Exchange is the act of obtaining a product from someone by offering something in return. People can obtain products through self-production, coercion, supplication and exchange. Self-production involves producing everything one needs as was done in the primitive hunting and gathering societies. Self-production is not practical and feasible in the modern age. coercion, the use of force in obtaining products from other people (theft and robbery) is socially unacceptable. Supplication or begging for products, although practiced by some, is not a feasible method for all people. The only feasible and socially acceptable approach for obtaining products is through the process of exchange. Marketing emerges only through the process of exchange. For successful exchange, the following five conditions should be present:-
1) There must be at least two parties.
2) Each party has something of value to offer to the other party.
3) Each party can communicate with the other party and also deliver the product.
4) Each party is free to accept or reject the offer.
5) Each party feels that it is appropriate of desirable to deal with the other party.
Transaction:-
A transaction is the trade of values between two or more parties. In the exchange process, two parties negotiate and move toward an agreement setting the terms and conditions of exchange. When an agreement is made, it results into a transaction. Transaction can either be barter of monetary. Under barter transaction, goods and/or services. In monetary transaction, goods and services are exchanged for money.
Exchange is the act of obtaining a product from someone by offering something in return. People can obtain products through self-production, coercion, supplication and exchange. Self-production involves producing everything one needs as was done in the primitive hunting and gathering societies. Self-production is not practical and feasible in the modern age. coercion, the use of force in obtaining products from other people (theft and robbery) is socially unacceptable. Supplication or begging for products, although practiced by some, is not a feasible method for all people. The only feasible and socially acceptable approach for obtaining products is through the process of exchange. Marketing emerges only through the process of exchange. For successful exchange, the following five conditions should be present:-
1) There must be at least two parties.
2) Each party has something of value to offer to the other party.
3) Each party can communicate with the other party and also deliver the product.
4) Each party is free to accept or reject the offer.
5) Each party feels that it is appropriate of desirable to deal with the other party.
Transaction:-
A transaction is the trade of values between two or more parties. In the exchange process, two parties negotiate and move toward an agreement setting the terms and conditions of exchange. When an agreement is made, it results into a transaction. Transaction can either be barter of monetary. Under barter transaction, goods and/or services. In monetary transaction, goods and services are exchanged for money.
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