Good Evening ladies and gentlemen my name is xxxxx and today I shall edify you about a really interesting theory refering consumer behavior and Marketing. As practising sellers, we are good cognizant of the impact that a famous persons indorsement can hold on consumer behavior but I am reasonably certain most of you wouldn’t cognize the concluding behind such a phenomenon. What is the Balance Theory?
Ever wondered why houses use famous persons to back their merchandises? Well inquire no farther because Fritz Heider proposed with his Balance theory that people attempt to keep a psychological balance and organize relationships that balance out their likes and disfavors. For illustration if Person A likes a famous person and the famous person likes a merchandise but Person A originally disliked the merchandise, so Person A is likely to stop up increasing his enjoyment of the merchandise or diminishing his liking of the famous person or both. All these options create equilibrium. As sellers, it is our end to accomplish market the merchandise successfully to the mark audience. For illustration if we were to utilize Michael Jordan to market golfing merchandises, so the mark consumer would most likely end up disliking the merchandise. However, if we were to utilize Tiger Woods to market the golfing merchandises, so consumers of golfing merchandises would most likely stop up wishing the merchandises.
What Is The Balance Theory
The Balance Theory Explained
So the Balance Theory is made up of a Triangle that consists of 3 elements. The relationship between these 3 elements is known as sentiment dealingss. So the first component is PO, the 2nd component is PX and the 3rd component is OX. If the consequences of the generation of the positive or negative marks of any 2 elements yields a positive consequence, so the consistence in the three is maintained and frailty versa. This theoretical account may look complicated but it is in kernel really basic. So allow me simplify this for you with an illustration.
Let us presume P is John a hoops fan, O is Michael Jordan a famous person Basketball participant and Ten is the merchandise being marketed and in this instance let’s presume it is a limited edition hoops. So if John is a fan of Michael Jordan, so the sentimental relation PO will be positive. Since Michael Jordan is approves of the merchandise he endorsed, the relationship OX is positive excessively. Therefore, by default, PX would be positive excessively.
However, say if P were to stay John, O were to go Tiger Woods and X were to go a golf set, so PO would go negative since Tiger Woods is a golf player and hence John would non be able to associate to him, OX would stay positive since Tiger Woods loves the merchandise he is backing and the eventual consequence of this would be a negative PX which would intend consistence in the Triad is non maintained and that the famous person indorsement has non been successful in advancing this merchandise to the consumer.
Importance of this theory to us
This theory is of involvement to us as future sellers as it helps us understand consumer behavior and psychological science with respects to mascots used to endorse/market a merchandise. It besides educates us on the 3 manner relationship that transpires between merchandise, famous person and consumer and in bend, we would be able to market our merchandises utilizing the right famous persons for the right merchandise.
The EndAnd that ladies and gentlemen concludes my presentation on Fritz Heider’s Balance Theory. Thank you all for your sort attending.
Bibliography1. hypertext transfer protocol: //www.investorwords.com/15193/balance_theory.html2. hypertext transfer protocol: //changingminds.org/explanations/theories/balance_theory.htm 3. Roy, Subhadip, Gammoh, Bashar S. , Koh Anthony C. ( 2012 ) . Predicting the effectivity of famous person indorsements utilizing the balance theory..Journal of Customer Behaviour. 11 ( 1 ) , p33-52.