Equity Theory in Consumer-Retailer Exchanges: How Free Samples Influence Consumer Behavior

Abstract

This paper studied how the equity theory applies to consumer-retailer exchanges and effects consumer behavior. Specifically, how cognitive dissonance and the norm of reciprocity play a role in consumer's purchasing decisions. The study observed how a free sample given to a customer in a frozen yogurt shop affects the ultimate purchase amount. The hypotheses in the study were based off of Adams (1963) methods of reducing cognitive dissonance. The hypotheses were that customers who take a sample from the retailer would purchase more yogurt because they are compelled by the norm of reciprocity; those customers who do not accept a sample will not sense inequity in the exchange and will not purchase more yogurt. These hypotheses were supported in the study and it was found that customers who accept a sample will purchase 15% than customers who do not take a sample. Implications for business managers are discussed.