ECONOMIC EXCHANGE AND PERSONAL RELATIONSHIP

Economic Exchange and Personal Relationship

Economic Exchange and Personal Relationship

Introduction

Economic exchange among people is as old as the existence of human. The term economic exchange refers to the system of exchanging of goods and services against the goods or services of the same worth. In clear words, economic exchange is the act of establishing communication for business/trade/economic purposes. Whereas, personal relationship in the context of economic exchange refer to the interest of an individual during economic exchange, as it is the nature of a human being to put his/er interest at first every time. Economic exchange at present occurs between people having some relationship. It is lly accepted that selfishness or interest based relationship is part of the human nature; this undeniable truth also applies on economic exchange (Donohue, Allen and Burrell, 2005). Whenever economic exchange activity is beginning between two or more individuals personal interest comes first. This view point has not been discussed widely but many researchers have focused on different angles on economic exchange, however, this study would reveal that whether economic exchange between people affect their personal relationship or not? Based on the answers of the first question this study would also examine the nature of effects on personal relation (i.e. positive or negative).

Research Question

This paper will attempt to answer the following question along with validating the research question from previous studies. Do economic exchange views negatively affect personal relationships?

Social Exchange Theory

Social Exchange theory is vital in the context of defining the exchanges between individuals and their relations. This is why social exchange theory has to be discussed here first in order to establish strong arguments in the paper. Social Exchange theory is based on the study of social interactions in economic terms. This theory suggests that an intervention involves a voluntary exchange of resources between individuals, groups and organizations that have resources which they wish to exchange for receiving something perceived as a benefit. The explanation to the source used in reference to a social marketing context in which the buyers in this exchange are members of the target audience. These people pay a price in money, time or effort, when buy the product. Costs related to the effort include inconvenience, physical effort and / or mental, social status and comfort. It is crucial to identify what costs target audiences are willing to engage and what costs would be avoided. In exchange for the costs incurred by the audience focus, the seller or who designed the campaign, provides a tangible asset (e.g. a quit kit), an intangible (a service related to health as nutritional advice, for example, an idea (such as risks to health from a diet high in fat). To persuade someone to take part in an exchange, an individual must believe the benefits of adopting preventive behaviors outweigh the cost of purchase / adoption. Incentives are the benefits of the intervention planners can offer to the chosen audience members, to foster innovation adoption behavior. Social Exchange Theory explicitly recognizes the costs ...