Exchange Theory

This theory is based on social exchanges in economic terms and it suggests that an intervention involves voluntary exchange of resources. Individuals, groups, and organisations have resources they are willing to exchange for perceived benefits. The explanation used in the source refers to a social marketing context in which the "buyers" in this exchange are the members of the target audience. These people pay a price, such as money, time or effort when they "purchase" the product. Effort-related costs include inconvenience, physical and/or mental tasks, social standing, and comfort. It is important to identify which costs intended audience members are willing to incur and which costs they are eager to avoid.

In return for the costs paid by the audience, the "seller", or campaign planner, provides a tangible good, such as a smoking cessation kit; an intangible good, such as "health" a service, such as nutrition counseling; or an idea, such as the health risks posed by a high-fat diet.

To persuade someone to take part in an exchange, the person must believe the benefits of adopting preventative behaviours outweigh the costs of purchase/adoption. Incentives are benefits that intervention planners can offer to members of target audiences to encourage adoption of behaviour innovation.

Exchange Theory encourages explicit acknowledgement of the costs and benefits of actions to be promoted in a campaign, and efforts to minimise costs and maximise the benefits.