Social Exchange Theory Case Study

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Question One. Part (A) Exchange theory in social marketing proposed that social behave is a result of and process of exchange. This process of exchange purposes maximizing benefits and lowering the costs down. According to exchange theory, people weight the benefits and risks of social-relationship. People will terminate the relationship if the risks outweigh the rewards. Social exchange theory is essentially concerned about taking benefits and lowering the cost to indicate if the relationship is worthy or not. When the benefits outweigh the cost it will be a positive relationship, but if costs exceed the benefits it becomes a negative relationship. Exchange processes, theoretical or practical, required five prerequisites to take place which…show more content…
Which is why segmentation and targeting are important concepts for a business to consider them as tools which identify the market palace. Segmentation means, dividing the market place into units, these units contain homogenous groups with needs, wants, demands but mostly have common expectations and values for needed products. So, we all know that markets have a variety of people with different experiences which live in varying circumstances. After dividing the population regarding their needs, marketer should choose which particular target group to offer them a product which meets their needs and expectations. The chosen target should be big enough to be profitable and valuable to invest in. Profit earning is the view for commercial targeting, meanwhile, social targeting is interested in the group capacity or has a potential to achieve the desired impact on the tackled problem. Accessibility for the targeted group is important too, if it is not reachable by communication channels it will lead to a big failure, so a communication channel is an initial part for choosing the targeted groups. Marketer's capability to serve the chosen target also should be considered when targeting a group, marketers should ask their self , Can we serve this/these groups? If yes, the target is on the right track, if no, the marketer should ignore them and try to get another group that they can serve. p

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