IGNOU BRL 104 2026 - How do you apply Exchange Theory of Communication to retail

Question

How do you apply Exchange Theory of Communication to retail interactions?

01 Mar 2026

Answer :

Word Count : 456

Exchange Theory of Communication views communication as a process in which individuals interact with the expectation of receiving valued returns. In retail interactions, this theory can be applied by understanding that both the retailer and the customer enter into communication with certain expectations, costs, and rewards in mind. The retailer seeks sales, customer loyalty, and positive word-of-mouth, while the customer seeks value, satisfaction, quality products, and a pleasant shopping experience. Effective retail communication is achieved when the perceived rewards outweigh the perceived costs for both parties. In a retail setting, every

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