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Exchange Theory of Communication views communication as a process in which individuals interact with the expectation of mutual benefit. In retail management, this theory can be applied to understand how retailers and customers engage in interactions that are based on perceived rewards and costs. Every retail interaction, whether it occurs in a physical store or through digital platforms, involves an exchange of information, value, emotions, and expectations. The success of the interaction depends on how effectively both parties perceive the benefits outweighing the costs. In a retail setting, customers enter the store with certain expectations such as quality products, fair pricing, convenience, and respectful treatment. Retailers, on the other hand, expect revenue, customer loyalty, positive word-of-mouth, and repeat purchases. By applying Exchange Theory, retail managers can _______ __________ _____ _______ ________ _____ ____.
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