Richard P.

Bagozzi

Marketi ng as Exchange
The exchange concept is a key factor in understanding
the expanding role of marketing.

T HE exchange paradigm has emerged as a

framework useful for conceptualizing mar-
keting behavior. Indeed, most contemporary
created, resolved, or avoided? The domain for the
subject matter of marketing is assumed to be
quite broad, encompassing all activities involving
definitions of marketing explicitly include ex- "exchange" and the cause and effect phenomena
change in their formulations.' Moreover, the cur- associated with it. As in the social and natural
rent debate on "broadening" centers on the very sciences, marketing owes its definition to the out-
notion of exchange: on its nature, scope, and come of debate and competition between diver-
efficacy in marketing. gent views in an evolutionary process that Kuhn
This article analyzes a number of dimensions of terms a "scientific revolution."3 Although the de-
the exchange paradigm that have not been dealt bate is far from settled, there appears to be a
with in the marketing literature. First, it attempts growing consensus that exchange forms the core
to show that what marketers have considered as phenomenon for study in marketing. Whether the
exchange is a special case of exchange theory that specific instances of exchange are to be limited to
focuses primarily on direct transfers of tangible economic institutions and consumers in the tradi-
entities between two parties. In reality, marketing tional sense or expanded to all organizations in
exchanges often are indirect, they may involve in- the broadened sense deserves further attention by
tangible and symbolic aspects, and more than marketing scholars and practitioners. Significant-
two parties may participate. Second, the media ly, the following principles apply to exchanges in
and meaning of exchange are discussed in order both senses.
to provide a foundation for specifying underlying
mechanisms in marketing exchanges. Finally, so- The Types of Exchange
cial marketing is analyzed in light of the
In general, there are three types of exchange:
broadened concept of exchange. restricted, generalized, and complex.' Each of
The following discussion proceeds from the as-
these is described below.
sumptions embodied in the generic concept of
marketing as formulated by Kotler, Levy, and Restricted Exchange
others.' In particular, it is assumed that market- Restricted exchange refers to two-party recip-
ing theory is concerned with two questions: (1) rocal relationships which may be represented
Why do people and organizations engage in ex- diagrammatically as A~B, where "~" signifies
change relationships? and (2) How are exchanges "gives to and receives from" and A and B repre-
1. See, for example, Marketing Staff of The Ohio State sent social actors such as consumers, retailers,
University, "A Statement of Marketing Philosophy," JOUR- salesmen, organizations, or collectivities.' Most
NAL OF MARKETING, Vol. 29 (January 1965), pp. 43-44; E. treatments of, and references to, exchange in
Jerome McCarthy, Basic Marketing, 5th ed. (Homewood, Ill.:
Richard D. Irwin, 1975); Philip Kotler, Marketing Manage-
ment, 2nd ed. (Englewood Cliffs, N.J.: Prentice-Hall, 1972), p. 3. Thomas S. Kuhn, The Structure of Scientific Revolu-
12; and Ben M. Enis, Marketing Principles (Pacific Palisades, tions, 2nd ed. (Chicago: The University of Chicago Press,
Calif.: Goodyear Publishing Co., 1974), p. 21. 1970).
2. Philip Kotler, "A Generic Concept of Marketing," 4. The distinction between restricted and generalized ex-
JOURNAL OF MARKETING, Vol. 36 (April 1972), pp. 46-54; and change was first made by anthropologist Claude Levi-
Philip Kotler and Sidney J. Levy, "Broadening the Concept Strauss in The Elementary Structures of Kinship (Boston:
of Marketing," JOURNAL OF MARKETING, Vol. 33 (January Beacon Press, 1969). An extended critical analysis of re-
1969), pp. 10-15. stricted and generalized exchange may be found in Peter P.
Ekeh, Social Exchange Theory: The Two Traditions (Cam-
bridge, Mass.: Harvard University Press, 1974), Chap. 3.
Journal of Marketing, Vol. 39 (October 1975), pp.32-39. 5. Ekeh, same reference as footnote 4, p. 50.

32
Marketing as Exchange 33

the marketing literature have implicitly dealt actors, for instance, generalized exchange may be
with restricted exchanges; that is, they have represented as A~~C~A, where "~" signifies
dealt with customer-salesman, wholesaler-retailer, "gives to." In generalized exchange, the social ac-
or other such dyadic exchanges. tors form a system in which each actor gives to
Restricted exchanges exhibit two characteris- another but receives from someone other than to
tics: whom he gave. For example, suppose a public bus
First, there is a great deal of attempt to company (B) asks a local department store chain
maintain equality. This is especially the (A) to donate or give a number of benches to the
case with repeatable social exchange acts. bus company. Suppose further that, after the de-
Attempts to gain advantage at the expense partment store chain (A) gives the benches to the
of the other is [sic] minimized. Negatively, bus company (B), the company (B) then places the
the breach of the rule of equality quickly benches at bus stops for the convenience of its
riders (C). Finally, suppose that a number of the
leads to emotional reactions. . . . Secondly,
there is a quid pro quo mentality in re- riders (C) see the advertisements placed on the
stricted exchange activities. Time intervals benches by the department store chain (A) and
later patronize the store as a result of this expo-
in mutual reciprocities are cut short and
sure. This sequence of exchange, A~~C~A, is
there is an attempt to balance activities
known as generalized exchange; while it fails to
and exchange items as part of the mutual
conform to the usual notions of quid pro quo, it
reciprocal relations."
certainly constitutes a marketing exchange of in-
The "attempt to maintain equality" is quite evi- terest.
dent in restricted marketing exchanges. Retailers,
for example, know that they will not obtain re- Complex Exchange
peat purchases if the consumer is taken advan- Complex exchange refers to a system of mutual
tage of and deceived. The "breach" in this rule of relationships between at least three parties. Each
equality-which is a central tenet of the market- social actor is involved in at least one direct ex-
ing concept-has led to picketing, boycotts, and change, while the entire system is organized by
even rioting. Finally, the fact that restricted mar- an interconnecting web of relationships.
keting exchanges must involve a quid pro quo no- Perhaps the best example of complex exchange
tion (something of value in exchange for some- in marketing is the channel of distribution. Let-
thing of value) has been at the heart of Luck's ting A represent a manufacturer, B a retailer, and
criticism of broadening the concept of market- C a consumer, it is possible to depict the channel
ing.? However, as will be developed below, there as A~B~C. Such open-ended sequences of direct
are important exceptions to the quid pro quo re- exchanges may be designated complex chain ex-
quirement in many marketing exchanges. changes.
But many marketing exchanges involve rela-
Generalized Exchange tively closed sequences of relationships. For
example, consider the claim made by Kotler that
Generalized exchange denotes univocal, recip- a "transaction takes place ... when a person de-
rocal relationships among at least three actors in cides to watch a television program."? Recently,
the exchange situation. Univocal reciprocity oc- Carman and Luck have criticized this assertion,
curs "if the reciprocations involve at least three maintaining that it may not exhibit an ex-
actors and if the actors do not benefit each other change.!? The differences stem from: (1) a dis-
directly but only indirectly."8 Given three social agreement on whether exchange must consist of
transfers of tangible (as opposed to intangible)
6. Ekeh, same reference as footnote 4, pp. 51-52.
7. David J. Luck, "Broadening the Concept of things of value, and (2) a neglect of the possibility
Marketing-Too Far," JOURNAL OF MARKETING, Vol. 33 of systems of exchange. Figure 1 illustrates the
(January 1969), pp. 10-15; and Luck, "Social Marketing: exchange between a person and a television pro-
Confusion Compounded," JOURNAL OF MARKETING, Vol. 38
(October 1974), pp. 70-72. gram and how it may be viewed as a link in a
8. Ekeh, same reference as footnote 4, pp. 48 and 50. system termed complex circular exchange.11 In this

• ABOUT THE AUTHOR. 9. Kotler, same reference as footnote 2, p. 48 .

10. James M. Carman, "On the Universality of Market-
Richard P. Bagozzi is a doctoral candidate in the ing," Journal of Contemporary Business, Vol. 2 (Autumn
Marketing Department of the Graduate School of 1973), p. 5; and Luck, "Social Marketing," same reference as
Management, Northwestern University, Evanston, Il- footnote 7, p. 72.
linois. 11. A form of circular exchange in primitive societies was
34 Journal of Marketing, October 1975

E n t er talnmen
' , enJoymen ,
product information, etc.
Television:
Person Programs and
Commercials
A Attention, support, potential
for purchase, etc.
A

Opportunity
$10.00 Book $.80 to pia ce ad
on pr ogram

$1.00
Advertising
Publisher Agency

Exposure of product in
mass media

FIGURE I. An example of complex circular exchange.

system of exchange, the person experiences a di- there is an overt coordination of activities and
rect transfer of intangibles between himself and expectations, which Alderson called an organized
the program. That is, he gives his attention, sup- behavioral system and which he reserved for the
port (for example, as measured by the Nielsen household, the firm, and the channel of distribu-
ratings), potential for purchase, and so on, and tion.P However, it should be evident that the
receives entertainment, enjoyment, product in- designation "organized" is a relative one and
formation, and other intangible entities. The per- that other exchange systems, such as the one
son also experiences an indirect exchange with shown in Figure 1, also evidence aspects of overt
the television program via a sequence of direct, coordination in an economic, social, and sym-
tangible exchanges. Thus, after being informed of bolic sense.
the availability of a book through an exchange Generalized and complex exchanges are also
with the television program and its advertising, a present in relatively unconscious systems of social
person may purchase it for, say, $10.00. The and economic relationships. Thus, a modern
book's publisher, in turn, may purchase the ser- economy may experience a covert coordination of
vices of an advertiser, paying what amounts to a activities through exchanges that occur when
percentage of each sale, say, $1.00. Finally, the many individuals, groups, and firms pursue their
advertiser receives the opportunity to place a own self-interest. This is what Adam Smith
commercial on the air from the television net- meant by his reference to an "invisible hand."13
work in exchange for what again amounts to a Similarly, in his analysis of primitive societies
percentage of each sale, say, $.80. In this particu- and marketing systems, Frazer has shown that
lar example, the occurrence of the direct intangi- exchange and the pursuit of self-interest can be
ble exchange was a necessary prerequisite for the the foundation for the web of kinship, economic,
development of the series of indirect tangible ex- and social institutions.r' The recent exchange
changes. Thus, an exchange can occur between a theories of Homans and Blau are also based on
person and a television program. this individualistic assumption of self-interest. I 5 It
Complex chain and complex circular exchanges
involve predominantly conscious systems of so- 12. Wroe Alderson, Dynamic Marketing Behavior
cial and economic relationships. In this sense, (Homewood, Ill.: Richard D. Irwin, 1965), Chap. 1.
13. For a modern treatment of Adam Smith's contribu-
tion to exchange theory, see Walter Nord, "Adam Smith and
first suggested by Bronislaw Malinowski in Argonauts of the Contemporary Social Exchange Theory," The American
Western Pacific (London: Routledge and Kegan Paul, 1922), Journal of Economics and Sociology, Vol. 32 (October 1974),
p. 93; but in his concept the same physical items were pp.421-436.
transmitted to all parties, while in complex circular ex- 14. Sir James G. Frazer, Folklore in the Old Testament,
change as defined here different tangible or symbolic en- Vol. 2 (London: Macmillan & Co., 1919).
tities may be transferred. 15. George C. Homans, Social Behavior: Its Elementary
Marketing as Exchange 35

should be stressed, however, that the exchange anticipating future needs, and these activities do
tradition developed by Levi-Strauss is not an in- not necessarily entail attempts to influence or
dividualistic one but rather is built on social, col- persuade.
lectivistic assumptions associated with general- To illustrate the multivariate nature of media
ized exchange." These differences will become in marketing exchanges, consider the example of
more apparent when social marketing is analyzed the channel of distribution, a complex chain ex-
below. change. The firms in a channel of distribution are
engaged in an intricate social system of be-
The Media and Meaning of Exchange havioral relationships that go well beyond the vis-
In order to satisfy human needs, people and ible exchange of products and money.t? Typically,
organizations are compelled to engage in social the traditional channel achieves its conscious
and economic exchanges with other people and coordination of effort through the mutual expec-
organizations. This is true for primitive as well as tations of profit. In addition, each firm in the
highly developed societies. Social actors obtain channel may influence the degree of cooperation
satisfaction of their needs by complying with, or and compliance of its partners by offering in-
influencing, the behavior of other actors. They do ducements in the form of services, deals, or other
this by communicating and controlling the media benefits or by persuading each link in the channel
of exchange which, in tum, comprise the links that it is in its own best interest to cooperate. A
between one individual and another, between one firm may also affect the behavior or decisions of
organization and another. Significantly, market- another firm through the use of the power it may
ing exchanges harbor meanings for individuals possess. Wilkinson has studied five bases of power
that go beyond the mere use of media for obtain- in the channel of distribution-reward, coercive,
ing results in interactions. legitimate, referent, and expert power-and has
tested aspects of these relationships between
The Media of Exchange firms." Finally, a firm may remind a delinquent
The media of exchange are the vehicles with member in the channel of its contractual obliga-
which people communicate to, and influence, tions or even threaten the member with legal ac-
others in the satisfaction of their needs. These tion for a breach of agreement. This influence
vehicles include money, persuasion, punishment, medium is known as the activation of commit-
power (authority), inducement, and activation of ments.
normative or ethical commitments.'? Products The Meaning of Exchange
and services are also media of exchange. In con-
sumer behavior research, marketers have exten- Human behavior is more than the outward re-
sively studied the effects of these vehicles on be- sponses or reactions of people to stimuli. Man not
havior. Moreover, it has been suggested that a only reacts to events or the actions of others but
number of these vehicles be used in conjunction he self-generates his own acts." His behavior is
with sociopsychological processes to explain the purposeful, intentional. It is motivated. Man is an
customer-salesman relationship. IS It should be information seeker and generator as well as an
noted, however, that marketing is not solely con- information processor. In short, human behavior
cerned with influence processes, whether these is a conjunction of meaning with action and reac-
involve manufacturers influencing consumers or tion.
consumers influencing manufacturers. Marketing Similarly, exchange is more than the mere
is also concerned with meeting existing needs and transfer of a product or service for money. To be
sure, most marketing exchanges are characterized

Forms, rev. ed. (New York: Harcourt Brace Jovanovich,

1974); and Peter M. Blau, Exchange and Power in Social Life 19. See, for example, Louis W. Stern, Distribution Chan-
(New York: John Wiley & Sons, 1964). nels: Behavioral Dimensions (New York: Houghton Mifflin
16. Levi-Strauss, same reference as footnote 4. See also, Co., 1969).
Ekeh, same reference as footnote 4, Chaps. 3 and 4. 20. Ian Wilkinson, "Power in Distribution Channels,"
17. Talcott Parsons, "On the Concept of Influence,' Public Cranfield Research Papers in Marketing and Logistics, Session
Opinion Quarterly, Vol. 27 (Spring 1963), pp. 37-62; and Par- 1973-1974 (Cranfield School of Management, Cranfield, Bed-
sons, "On the Concept of Political Power," Proceedings of the fordshire, England); and Wilkinson, "Researching the Dis-
American Philosophical Society, Vol. 107 (June 1963), pp. tribution Channels for Consumer and Industrial Goods: the
232-262. See also, Richard Emerson, "Power Dependence Power Dimension," Journal of the Market Research Society,
Relations," American Sociological Review, Vol. 27 (February Vol. 16 (No.1, 1974), pp. 12-32.
1962), pp. 31-40. 21. This dynamic, as opposed to mechanistic, image of
18. Richard P. Bagozzi, "Marketing as an Organized Be- human behavior is described nicely in R. Harre and P. F.
havioral System of Exchange," JOURNAL OF MARKETING, Vol. Secord, The Explanation of Social Behavior (Totawa, N.J.:
38 (October 1974), pp. 77-81. Littlefield, Adams & Co., 1973).
36 Journal of Marketing, October 1975

by such a transfer. But the reasons behind the havior that assumes many of the features of
exchange-the explanation of its occurrence-lie economic man.>' His model is based on the theory
in the social and psychological significance of the of purposive action, which posits that each "actor
experiences, feelings, and meanings of the parties will choose that action which according to his
in the exchange. In general, marketing exchanges estimate will lead to an expectation of the most
may exhibit one of three classes of meanings: beneficial consequences."25 Among other things,
utilitarian, symbolic, or mixed. the theory may be used to predict the outcomes
Utilitarian Exchange. A utilitarian exchange is and degree of control social actors have for a set
an interaction whereby goods are given in return of collective actions in an exchange system.
for money or other goods and the motivation be- Symbolic Exchange. Symbolic exchange refers
hind the actions lies in the anticipated use or tan- to the mutual transfer of psychological, social, or
gible characteristics commonly associated with other intangible entities between two or more
the objects in the exchange. The utilitarian ex- parties. Levy was one of the first marketers to
change is often referred to as an economic ex- recognize this aspect of behavior, which is com-
change, and most treatments of exchange in mar- mon to many everyday marketing exchanges:
keting implicitly rely on this usage. As Bartels
. . . symbol is a general term for all in-
notes with regard to the identity crisis in market-
stances where experience is mediated
ing:
rather than direct; where an object, action,
Marketing has initially and generally been word, picture, or complex behavior is un-
associated exclusively with the distributive derstood to mean not only itself but also
part of the economic institution and function. some other ideas or feelings.
The less concern there is with the con-
The question, then, is whether marketing is crete satisfactions of a survival level of exis-
identified by the field of economics in which tence, the more abstract human responses
the marketing techniques have been de- become. As behavior in the market place is
veloped and generally applied, or by the so- increasingly elaborated, it also becomes in-
called marketing techniques, wherever they creasingly symbolic. This idea needs some
may be applied. examination, because it means that sellers
If marketing relates to the distributive of goods are engaged, whether willfully or
function of the economy, providing goods and not, in selling symbols, as well as practical
services, that physical function differentiates merchandise. It means that marketing
it from all other social institutions.P managers must attend to more than the rel-
atively superficial facts with which they
Most marketers have traditionally conceptualized
usually concern themselves when they do
the subject matter of the discipline in these terms,
not think of their goods as having symbolic
and they have proceeded from the assumptions
significance.... People buy things not only
embodied in utilitarian exchange.
for what they can do, but also for what they
In general, utilitarian exchange theory is built
mean. 26
on the foundation of economic man. 23 Thus, it is
assumed that: Mixed Exchange. Marketing exchanges involve
1. Men are rational in their behavior. both utilitarian and symbolic aspects, and it is
often very difficult to separate the two. Yet, the
2. They attempt to maximize their satisfaction
very creation and resolution of marketing ex-
in exchanges.
changes depend on the nature of the symbolic
3. They have complete information on alterna- and utilitarian mix. It has only been within the
tives available to them in exchanges. past decade or so that marketers have investi-
4. These exchanges are relatively free from ex- gated this deeper side of marketing behavior in
ternal influence. their studies of psychographies, motivation re-
Coleman has developed an elaborate mathemati- search, attitude and multiattribute models, and
cal framework for representing exchange be- other aspects of buyer and consumer behavior.

22. Robert Bartels, "The Identity Crisis in Marketing," 24. James S. Coleman, "Systems of Social Exchange,"
JOURNAL OF MARKETING, Vol. 38 (October 1974), p. 75. Em- Journal of Mathematical Sociology, Vol. 2 (December 1972).
phasis added. 25. James S. Coleman, The Mathematics of Collective Ac-
23. For a modern treatment of economic man, see Harold tion (Chicago: Aldine-Atherton, 1973).
K. Schneider, Economic Man (New York: The Free Press, 26. Sidney J. Levy, "Symbols for Sale," Harvard Business
1974). Review, Vol. 37 (July-August 1959), pp. 117-119.
Marketing as Exchange 37

Out of this research tradition has emerged a pic- Bartels recently muddied the waters with still
ture of man in his true complexity as striving for a new definition that is vastly different from
both economic and symbolic rewards. Thus, we those previously suggested. For him, social mar-
see the emergence of marketing man, perhaps keting designates "the application of marketing
based on the following assumptions: techniques to nonmarketing fields."30 Since these
1. Man is sometimes rational, sometimes irra- definitions cover virtually everything in market-
tional. ing and even some things outside of marketing, it
is no wonder that one author felt compelled to
2. He is motivated by tangible as well as intan-
express his "personal confusion" and "uncom-
gible rewards, by internal as well as external
fortable" state of mind regarding the concept.t'
forces.s?
But what is social marketing? Before answering
3. He engages in utilitarian as well as symbolic this question, we must reject the previous defini-
exchanges involving psychological and so- tions for a number of reasons. First, we must re-
cial aspects. ject the notion that social marketing is merely the
4. Although faced with incomplete informa- "use" or "application" of marketing techniques or
tion, he proceeds the best he can and makes skills to other areas. A science or discipline is
at least rudimentary and sometimes uncon- something more than its technologies. "Social
scious calculations of the costs and benefits marketing" connotes what is social and what is
associated with social and economic ex- marketing, and to limit the definition to the tools
changes. of a discipline is to beg the question of the mean-
5. Although occasionally striving to maximize ing of marketing. Second, social marketing is not
his profits, marketing man often settles for solely the study of marketing within the frame of
less than optimum gains in his exchanges. the total social system, and it is even more than
6. Finally, exchanges do not occur in isolation the subject matter of the discipline. Rather, the
but are subject to a host of individual and meaning of social marketing-like that of market-
social constraints: legal, ethical, normative, ing itself-is to be found in the unique problems
coercive, and the like. that confront the discipline. Thus, as the
philosopher of science, Popper, notes:
The important research question to answer is:
What are the forces and conditions creating and The belief that there is such a thing as
resolving marketing exchange relationships? The physics, or biology, or archaeology, and that
processes involved in the creation and resolution these "studies" or "disciplines" are distin-
of exchange relationships constitute the subject guishable by the subject matter which they
matter of marketing, and these processes depend investigate, appears to me to be a residue
on, and cannot be separated from, the fundamen- from the time when one believed that a
tal character of human and organizational needs. theory had to proceed from a definition of its
own subject matter. But subject matter, or
Social Marketing kinds of things, do not, I hold, constitute a
basis for distinguishing disciplines. Disci-
The marketing literature is replete with con- plines are distinguished partly for historical
flicting definitions of social marketing. Some have reasons and reasons of administrative con-
defined the term to signify the use of marketing venience (such as the organization of teach-
skills in social causes." while others have meant ing and of appointments), and partly because
it to refer also to "the study of markets and mar- the theories which we construct to solve our
keting activities within a total social system."29 problems have a tendency to grow into
unified systems. But all this classification and
27. It should be stressed that man is motivated by the distinction is a comparatively unimportant
hope or anticipation of future rewards, and these may con- and superficial affair. We are not students of
sist of classes of benefits not necessarily experienced in the
past. See Homans's individualistic exchange theory, a learn- some subject matter but students of problems.
ing perspective, same reference as footnote 15; Levi- And problems may cut right across the bor-
Strauss's collectivistic, symbolic perspective, same refer- ders of any subject matter or discipline.P
ence as footnote 4; and Ekeh, same reference as footnote 4,
pp. 118-124, 163.
28. Philip Kotler and Gerald Zaltman, "Social Marketing:
An Approach to Planned Social Change," JOURNAL OF MAR- 30. Same reference as footnote 22. Emphasis added.
KETING, Vol. 35 (July 1971), p. 5. 31. Luck, "Social Marketing," same reference as footnote 7,
29. William Lazer and Eugene J. Kelley, eds., Social Mar- p.70.
keting: Perspectives and Viewpoints (Homewood, Ill.: Richard 32. Karl R. Popper, Conjectures and Refutations (New
D. Irwin, 1973), p. 4. Emphasis added. York: Harper & Row, 1963), p. 67.
38 Journal of Marketing, October 1975

The Needy and Dependent in Society

The Rest of Society

FIGURE 2. Social marketing and exchange.

Social marketing, then, addresses a particular that there is most definitely an exchange in social
type of problem which, in turn, is a subset of the marketing relationships, but the exchange is not
generic concept of marketing. That is, social mar- the simple quid pro quo notion characteristic of
keting is the answer to a particular question: Why most economic exchanges. Rather, social market-
and how are exchanges created and resolved in ing relationships exhibit what may be called
social relationships? Social relationships (as op- generalized or complex exchanges. They involve
posed to economic relationships) are those such the symbolic transfer of both tangible and intan-
as family planning agent-client, welfare agent- gible entities, and they invoke various media to
indigent, social worker-poor person, and so on." influence such exchanges.
Social marketing attempts to determine the Figure 2 illustrates a typical social marketing
dynamics and nature of the exchange behavior in exchange. In this system, society authorizes
these relationships. government-through its votes and tax pay-
But is there an exchange in a social relation- ments-to provide needed social services such as
ship? Luck, for example, feels that "a person who welfare. In return, the members of society receive
receives a free service is not a buyer and has con- social insurance against common human
ducted no exchange of values with the provider of maladies. Government, in turn, pays the salaries
the service."34 It is the contention in this article of social workers, gives them authority to provide
social services, and so on. It also distributes wel-
33. For a conceptual framework comparing marketing fare payments directly to the needy. These rela-
and other social relationships, see Richard P. Bagozzi, tively contemporaneous transfers make this mar-
"What is a Marketing Relationship?" Der Markt, No. 51,
1974, pp. 64-69.
keting system one of generalized exchange. In
34. Luck," Social Marketing," same reference as footnote 7, addition, a number of symbolic and delayed trans-
p.71. fers occur that make the system also one of complex
Marketing as Exchange 39

exchange. For example, as shown by dotted lines 1. Why do marketing exchanges emerge? How
in the figure, in many cases the needy and depen- do people and organizations satisfy their
dent have given to the government in the past, needs through exchange?
since they may have paid taxes and voted. 2. Why do some marketing exchanges persist
Moreover, members of society anticipate that in ongoing relationships while others fall
they, or a number of their members, will become apart?
dependent and that social services represent an 3. What are the processes leading to changes in
investment as well as an obligation. Hence, in one marketing exchange relationships? How do
sense there is a mutual exchange between society the social actors or third parties influence or
and the needy separated, in part, by the passage control an exchange?
of time. Finally, it should be noted that there are 4. What are the consequences of imbalances in
other tangential exchanges and forces occurring power, resources, knowledge, and so on, in a
in this social marketing system that, depending marketing exchange? What is an equitable
on their balance, give it stability or promote exchange?
change. The system achieves stability due, first, to
5. What are the relationships between conflict,
the presence of the exchanges described above,
cooperation, competition, and exchange?
which create mutual dependencies and univocal
reciprocities; and, second, to symbolic exchanges, 6. At what level may marketing exchanges be
which reinforce the overt transfers. For example, analyzed? What are the consequences of
the social worker gives to the needy but also re- viewing exchanges as single dyads or com-
ceives back gratitude and feelings of accomplish- plex systems of relationships? What are the
ment. The system undergoes change due to the consequences of employing the individualis-
dynamics of competing interests, as is exemplified tic reductionism of Homans versus the col-
in the efforts of lobbies and pressure groups to lectivistic orientation of Levi-Strauss for un-
bring their needs to bear on the legislative pro- derstanding exchange behavior?
cess. 7. Is the exchange paradigm universal? Does it
Thus, social marketing is really a subset of the apply to the free-enterprise countries of the
generic concept of marketing in that it deals with western world, the planned economies of the
the creation and resolution of exchanges in social communist countries, and the primitive
relationships. Marketers can make contributions economies of the third world?
to other areas that contain social exchanges by 8. How well does the exchange paradigm meet
providing theories and techniques for the under- the requirements for theory as, specified by
standing and control of such transactions. They philosophy of science criteria?
do not usurp the authority of specialists in areas
such as social work, but rather they aid and com- Although marketing seems to defy simple
plement the efforts of these social scientists. It is definition and circumscription, it is essential that
not so much the fact that the subject matter of marketers locate the distinctive focus (or foci) of
marketing overlaps with that of other disciplines the discipline. Failure to do so impedes both the
as it is that the problems of marketing are univer- growth of the discipline and the character of its
sal. In answer to Bartels's query, "Is marketing a performance. Exchange is a central concept in
specific function with general applicability or a marketing, and it may well serve as the founda-
general function that is specifically applied?"35 tion for that elusive "general theory of market-
-<lne may state that it is neither. Rather, market- ing." This article has attempted to explore some
ing is a general function of universal applicability. of the key concepts in the exchange paradigm.
It is the discipline of exchange behavior, and it Future research and discussion must search for
deals with problems related to this behavior. specific social and psychological processes that
create and resolve marketing exchanges.
Conclusions and Implications
A number of broad research questions may be The author wishes to acknowledge his gratitude to Profes-
posed: sors Clewett, Kotler, and Levy and Associate Dean Westfall
of Northwestern University, and to the reviewers, for the
35. Same reference as footnote 22, p. 73. exchange of ideas that led to this article.