An Application of Equity Theory to Buyer-Seller Exchange...

An Application of Equity Theory to Buyer-Seller Exchange Situations The theory of cognitive dissonance posits that when an individual s cognitive elements are inconsistent with each other, a state of cognitive dissonance exists [15, 27]. Also, it is assumed that when such a condition is present an individual develops a need to restore equilibrium [15, 27]. Dissonance may be aroused from various sources: decision making, forced compliance, exposure to dissonant information, and disagreement with others [15]. When an individual is confronted with cognitive dissonance, several modes may be used to restore consonance: inconsistency repression, bolstering, the other inconsistency, object modification, peer devaluation,†¦show more content†¦[34] suggest, equity theory may be applied to a number of exchange situations. In the past most studies have involved employment situations where the variables of interest were changes in productivity and work quality, and the equity theory model has been shown to be useful for predicting subjects responses to inequitable work situations [19, 29, 32]. In the present study it was reasoned that if the equity model could be applied to consumer-retailer relationships, situations in which consumers feel they are being treated unfairly could be interpreted as inequitable, and subsequent behaviors employed by consumers in those situations could be interpreted as modes of inequity reduction. This study was designed to test some predictions derived from equity theory by having subjects rate the fairness of hypothetical retail exchange situations and choose a behavior they would be likely to perform in such situations. Hypothetical situations were used because the manipulations of inequity would have been very difficult to accomplish in actual situations. 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