Marketing as exchange richard p. bagozzi, 1975

Universitas Sumatera Utara
www.usu.ac.id Create: Bambang suwarno
Richard P. Bagozzi
Marketing as Exchange
Journal of Marketing – Oct 1975
Marketing as
Exchange
Present by:
Bambang Suwarno
JOURNAL
Bagozzi, Richard P.
Journal of Marketing (pre-1986)
Oct 1975; Vol.39, 04, Page 32-39

Richard P. Bagozzi
The Exchange concept is a key factor
in understanding the expanding role of
marketing
• On Its Natural
• Scope
• Efficacy In Marketing

Richard P. Bagozzi
Generic Concept Of Marketing (Philips Kotler and Sidney J. Levy -1969:10-15)
Marketing Theory Is Concerned With Two Questions:
• Why do people and
organizations engage in
exchange relationships?
• How are exchanges created,
resolved, or avoided?

Richard P. Bagozzi
• The Types of Exchange
• The Media and Meaning
of Exchange
• Social Marketing
Agenda

Richard P. Bagozzi
The Types of Exchange
•Restricted Exchange
•Generalized Exchange
•Complex Exchange

Richard P. Bagozzi
• Restricted Exchange:
A buyer and a seller with
a content to exchange
such as product, service,
knowledge, time or a
gift. Both parties accrue
mutual benefit from the
exchange

Richard P. Bagozzi
• Generalized Exchange:
reciprocal relationship
with at least 3 parties
where each party does
not benefit directly from
the other. For ex: A
Vendor sponsors a
partner’s event with
giveaways for end users
attending the event.

Richard P. Bagozzi
•Complex Exchange:
Mutual relationships
with at least 3 parties
with at least one direct
exchange between
every 2 parties: Vendor
exchanges with
wholesaler exchanges
with Retailer.

Richard P. Bagozzi
The Media and Meaning of Exchange
•The Media of Exchange
•The Meaning of Exchange

Richard P. Bagozzi
The Media of Exchange
• The media of exchange are the vehicles with which
people communicate to, and influence, others in the
satisfaction of their needs.
• These vehicles include money, persuasion,
punishment, power (authority), inducement, and
activation of normative or ethical commitments.
• Products and services are also media exchange.

Richard P. Bagozzi
• Wilkinson has studied five
bases of power in the
channel of distribution -
reward, coercive, legitimate,
referent, and expert power -
and has tested aspects of
these relationships between
firms.
The Media of Exchange

Richard P. Bagozzi
The Meaning of Exchange
•Utilitarian Exchange
•Symbolic Exchange
•Mixed Exchange

Richard P. Bagozzi
Utilitarian Exchange is an interaction where by
goods by given in return for money or other goods
and motivation behind the actions lies in the
anticipated use or tangible characteristic commonly
associated with the object in the exchange
Economic Exchange

Richard P. Bagozzi
Utilitarian exchange theory is built on the foundation of
economic man. Thus, it is assumed that:
• Men are rational in their behavior.
• They attempt to maximize their satisfaction in
exchanges.
• They have complete information on alternatives
available to them in exchanges.
• These exchange are relatively free from external
influence.

Richard P. Bagozzi
Symbolic Exchange refers to the mutual transfer of
psychological, social, or other intangible entities
between two or more parties.

Richard P. Bagozzi
Mixed Exchange, marketing exchange involve both
utilitarian and symbolic aspects, and it is often very
difficult to separate the two.

Richard P. Bagozzi
Mixed Exchange. Thus, we see the emergence of marketing man, perhaps
based on the following assumption:
• Men is something rational, sometimes irrational.
• He is motivated by tangible as well as intangible rewards, by internal as
well as external forces.
• He engages is utilitarian as well as symbolic exchanges involving
psychological and social aspects.
• Although faced with incomplete information, he proceeds the best he
can and makes at least rudimentary and sometimes unconscious
calculations of the cost and benefits associated with social and
economic exchanges.
• Although occasionally striving to maximize his profits, marketing man
often settles for less than optimum gains in his exchanges.
• Finally, exchanges do not occur in isolation but are subject to a host of
individual and social constraints: legal, ethical, normative, coercive, and
the like.

Richard P. Bagozzi
Social Marketing
• Kotler and Andreasen defined Social Marketing as:
“Differing from other areas of marketing only with
respect to the objectives of the marketer, and his
or her organization.”
• “Social Marketing’s intention to produce change
which involves influencing the attitudes, beliefs and
behaviors of individuals or organizations for a social
benefit.”

Richard P. Bagozzi
What is Social Marketing?
• Social Marketing seeks to influence social
behaviors
• Not to benefit the marketer
• But to benefit the target audience and the
general society.

Richard P. Bagozzi
• Addresses a particular type of problem which, is
a subset of the generic concept of marketing.
• Attempts to determine the dynamics and nature
of the exchange behavior in these relationship.
• Relationships exhibit what may be called
generalized or complex exchange.
• Quid pro quo notion characteristic , term for
"something for something,"
Social Marketing

Richard P. Bagozzi
• Bartels’s query, ”Is marketing a specific function with
general applicability or a general function that is
specifically applied?” .
• Marketing is a general function of universal
applicability.
• Exchange is a central concept in marketing, and it may
well serve as the foundation for that elusive “general
theory of marketing.
• ”This article has attempted to explore some of the key
concept in the exchange paradigm.
• Future research and discussion must search for specific
social and psychological processes that create and
resolve marketing exchange.

Richard P. Bagozzi

Marketing as exchange richard p. bagozzi, 1975

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