• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Effects of the Internet of Bagozzi's exchange paradigm

Extracts from this document...


In what ways has the development of the Internet created challenges to Bagozzi's views of exchange? "Bagozzi's exchange paradigm has emerged as a framework for conceptualising marketing behaviour." (Bagozzi, 1975: pp. 32). This theory identifies the parties involved in any transaction, and the intangible and tangible entities are exchanged. By identifying the actors/parties, this theory acts as a valuable managerial tool, by helping to think what is being exchanged, and with whom. This theory has helped to see beyond the tangible products being exchanged, but to consider the intangible aspects of the transaction and all entities. The weakness of this being that it is difficult to identify all intangible entities within the transaction. The theory also states the exchange is reciprocal and mutually beneficial (Bagozzi, 1975: pp. 32), i.e. that the entities being exchanged are perceived to be of equal value. Furthermore, Bagozzi (1974) observed that complex exchanges could include both overt and covert coordination. Bagozzi identified three different types of exchange: restricted, generalised and complex. "Restricted exchange refers to two party reciprocal relationships", where both parties give and receive from the other party, (Bagozzi, 1975: pp. ...read more.


Personalisation allows a firm to identify individual consumer needs and inform them of products that will satisfy them. Historically this would be the role of a salesperson to a customer in a restricted exchange (Bagozzi, 1975: pp. 32). Bagozzi's theory applied well to the face-to-face transactions of the 70's, however exchanges over the Internet are very different from the in-store transactions that Bagozzi's theory of exchange applied to, and offer many challenges. Transactions over the Internet have more parties than traditional exchanges, as in order to access the Internet a user must use an Internet service provider. The Internet service provider gives access to the Internet, however it also logs the websites that the user has viewed. So here this could be seen as a "middle man", who receives information on the websites visited as well as a premium, and in return allows access to the Internet. This is part of all Internet exchanges, and so it needs to be identified as a party, as the information that they receive is used to target products and services. Figure 1: Note: Adapted and altered from Bagozzi: Marketing as Exchange (1975) ...read more.


For small exchanges or exchanges were the parties and entities within are clear, I feel Bagozzi's theory is still very important, but I feel it is not easily applied to the diverse range of exchanges brought about by the internet. The Internet was an unforeseen phenomenon that has influenced the exchange (Bagozzi, 1975: pp. 39). The theory still fits the exchange process, as it hasn't changed dramatically, however there are third parties that must be identified, such as the ISP, delivery firms, and other parties that receive information. Delivery is part of the exchange process, however this is part of the service offered by the merchant. If these were identified, it would be possible to differentiate the types of exchange as being restricted, generalised or complex. If this were done, then Figure 1 would be identified as a restricted exchange (Bagozzi, 1975: pp. 32). Within the exchange there is overt and covert coordination (Bagozzi, 1974: pp. 77-81), and think that majority of the third parties that collect information about the consumer's website habits is collected covertly, however it is still part of the process. For example, the ISP's collection of viewed websites is used for marketing purposes. Although it is not a party to the exchange, it should be recognised as a third party. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Internet section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Internet essays

  1. In assessing the competitive position of a large online trader, we would use the ...

    62,479,071 65 years and over 35,607,541 35,337,718 35,081,145 Total 287,973,924 285,093,813 282,177,754 From above table, people in the age range of 25 to 44 years were the biggest group in U.S. which was 84,461,957 people or around 29 percent of the whole U.S.

  2. ICT Solutions for individuals and society

    After searching for sites to do with my assignment using Google the BBC website came up with lots of information on what I am looking for. As well as Wikipedia Therefore, I will therefore use that website for this task.

  1. E-commerce Technology

    and this area of content is very important for many web designers. Website developer should incorporate Human-Computer Interaction principle to support visitors to find their way to the information and other goods offered within the site. Thurow, S. (2002) reports that, in order to get the best search engine visually,

  2. Critically analyse and evaluate current developments in consumer behaviour in relation to one transport ...

    Not saying that they did not have these rooms before, but some cruise liners did not offer this service for the disabled consumer group, and it was against the law. There should be no problems for disabled people finding a cruise liner suitable for them as all cruise liners now

  1. How technolgy effects my community

    Evaluation Security camera now a days are a necessity of life as they add insurance to business and homeowners allowing them to feel safe in their own homes and community. For this reason I feel security camera do a very good job but I do feel there are many bad

  2. online services

    Another advantage of shopping on ebay is that you get special online prices; prices on ebay are usually a lot cheaper than in shops. Ebay alerts are useful as it emails you if your bids have been successful or if they have been out bid.

  1. Searching the internet and features of PDA's

    Digital camera 7) Bluetooth 8) Password Protection 9) Be a phone as well 10) Contacts and Appointments 11) Memo pad 12) Calculator The report will know explain why these features are relevant to your company in the construction industry. Rebolj, D., Magdic, A. and Cu�-Babic, N (2000), looked at a 'multipurpose experimental, educational and research project called Mobile

  2. What are the possibilities of and obstacles to the development of global online communication?

    It is perceived as being the spread of various objects and experiences worldwide, to people in all corners of the globe. Online communication is a key example of this, as it shows how the introduction of the Internet, has globally effected how and why people consume this method of mass communication.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work