Expectation Confirmation theory: Expectations-confirmation theory posits that expectations, coupled with perceived performance, lead to post-purchase satisfaction.

This effect is mediated through positive or negative disconfirmation between expectations and performance. If a product outperforms expectations (positive disconfirmation) post-purchase satisfaction will result. If a product falls short of expectations (negative disconfirmation) the consumer is likely to be dissatisfied. The four main constructs in the model are: expectations, performance, disconfirmation, and satisfaction. Expectations reflect anticipated behavior. They are predictive, indicating expected product attributes at some point in the future. Expectations serve as the comparison standard in ECT what consumers use to evaluate performance and form a disconfirmation judgment. Disconfirmation is hypothesized to affect satisfaction, with positive disconfirmation leading to satisfaction and negative disconfirmation leading to dissatisfaction. A major debate within the marketing literature concerns the nature of the effect of disconfirmation on satisfaction. The root of the problem lies in the definition of predictive expectations as the comparison standard for perceived performance. In such case, the confirmation of negative expectations is not likely to lead to satisfaction. To overcome this problem, researchers have proposed other comparison standards such as desires, ideals, equity, or past product and brand experience. John Stacey Adams' Equity Theory

The Give and Take Relationship: Identified by Adams as input-outcome relationship, the give-and-take ratio is the pivotal aspect of this theory. It is in trying to balance the perceived give against the expected take that this theory comes into play. Reference Points and Comparisons: Give-and-take alone is not what sets the equity theory into motion. There has to be a reference to others and a comparison of the ratio of give-and-take of oneself with others who are working under same conditions, giving proportionate, if not same, input. Relative Theory: The equity theory of motivation is not based on absolute premises. Its structure and beliefs are based on PERCEIVED, and not established, equity. Perception being a volatile and random psychological premise, the equity theory can assuredly be called a relative theory. The equity theory is not just restricted to organizational behavior it applies to relationships as much as it does to management and employee motivation, though in a more subtle, subconscious way. The equity theory definition stands on the three cornerstones of Inputs, Outcomes and Equity and builds up on the inter-relationship among these three. Let us elaborate on each of these three aspects and see what possibilities come under the purview of each aspect.

INPUT Skills, efforts, hard work, loyalty, determination, dedication, enthusiasm, trust in superiors and organization, cooperation with colleagues, support to subordinates, tolerance, time, personal sacrifice, commitment, flexibility, experience, etc.

OUTCOME Salary, allowances, perquisites, benefits, recognition, appreciation, responsibility (additional), promotion, training, cooperation from organization and colleagues, sense of achievement, growth and development, additional opportunities within organization, etc.

EQUITY

The feeling that the points under INPUT and OUTCOMES are balanced and the proportion is equivalent to that of others' (colleagues and peers) INPUT:OUTCOME ratios.

Now that the possible constituents of each of the three cornerstones have been identified, let us try and depict the equity theory in a simple equation. The equation of Equity would be as follows: Expected Individual Outcome = Perceived Individual Input Equity Relational Individual's Input Theory in Management Relational Individual's Outcome

Equity theory in management pertains majorly to organizational behavior and employees' expectation of management's fair play. An understanding of this theory would help understand a lot of gray areas of personnel management which result due to employee dissatisfaction despite fair remuneration. A senior staff at an organization may be initially satisfied with more pay, owing to his experience being more than his colleagues but the thought of getting more than he is offering may act as a demotivating factor for him to produce quality work. It becomes a "taken for granted" situation where an employee, who feels he is getting more than he is putting in, becomes complacent.

On the other hand, an employee who feels he/ she is over-compensated may increase his/her work efforts to live up to the standards, which he/she feels, have been set by the (perceived) high compensation. This may result in a "burn-out" situation where the employee, in a bid to balance professional effort with compensation, may end up unbalancing his/her professional and personal life. Theory of Relationships

Equity

In case of personal relationships also, be it intimate, people tend to make efforts

towards establishing equity. Even when it comes to love, care, affection and sharing joint responsibilities, both or all the parties tend to evaluate their extended efforts against their received benefits and compare these with those involved in the relationship. For instance, let us take a romantic relationship involving two intimate partners. "He" would expect from "Her" a perceived similar amount of attention and affection which "He" showers "Her" with and vice versa. In case if "He" feels that "She" is investing in the relationship more than "Him", "He" would either start feeling guilty or try to make up for his perceived lacuna by other ways such as treating "Her" to vacations or exclusive dates, giving "Her" gifts very often, etc. Same applies to "Her". In the reverse case, where one partner feels that he/she is getting less than he/she is giving the other, dissatisfaction and frustration settles in, straining the relationship. A very common example of the play of equity theory of relationships can be seen in the contemporary work-life scenario. Working parents often indulge their kids as a way of compensating for less time spent with them. People who are often kept away from their families owing to work are seen to have the tendency of treating their families to exclusive vacations and amusements, as a way to save themselves from an emotional guilt trip. Nature is all about establishing equilibrium, sometimes even resorting to chaos to restore order. Likewise, all creations of Nature have inherited this trait. It is, therefore, understandable that Man, being a creature with the most complex mental structure, would go a step forward and strive for psychological and perceptional equilibrium to feel at ease with himself and his surroundings. Equity theory identifies and acknowledges this this innate behavioral peculiarity of the human mind and makes an attempt to explain why humans feel dissatisfied even when they get more than they put in! Well, that was some heavy psychology lesson! ATTRIBUTION THEORY Attribution - to explain by indicating a cause ATTRIBUTION THEORY - motivational theory looking at how the average person constructs the meaning of an event based on his /her motives to find a cause and his/her knowledge of the environment. Att. Theory basically looks at how people make sense of their world; what cause and effect inferences they make about the behaviors of others and of themselves. Heider states that there is a strong need in individuals to understand transient events by attributing them to the actor's disposition or to stable characteristics of the environment. The purpose behind making attributions is to achieve COGNITIVE CONTROL over one's environment by explaining and understanding the causes behind behaviors and environmental occurrences.

Making attributions gives order and predictability to our lives; helps us to cope. Imagine what it would be like if you felt that you had no control over the world. (talk about later) When you make attributions you analyze the situation by making inferences (going beyond the information given) about the dispositions of others and yourself as well as inferences about the environment and how it may be causing a person to behave. Two basic kinds of attributions made: INTERNAL and EXTERNAL INTERNAL - dispositional EXTERNAL - situational Consequences of making inferences: 1) gives order and predictability; 2) inferences lead to behavior - you will or will not behave in certain ways toward the actor based on your inferences and you will form expectations as to how the actor will behave. The meaning of a behavior depends on the cause to which it is attributed (e.g. bystander studies - if we don't perceive the situation is caused by an emergency then we don't act like it is an emergency). INACCURACIES in attribution: 1) misplaced blame (trials, eyewitness studies, whites vs. blacks); 2) blinds people to other causes ATTRIBUTION THEORIES: 1) CORRESPONDENT INFERENCE THEORY (HEIDER AND JONES) Given that an individual has POWER (is capable of being responsible for his own behavior) the factors affecting the attributions that the observer will make are: 1) the observer's (o's) knowledge of environmental factors impinging on the actor (a) 2) the observer's motives 3) the observer's perspective as a bystander or an actor 1) o's knowledge of the envir.

a) free choice? was the A pushed into his action by environmental forces (Bill hit Mary) or did he freely choose his action CORRESPONDENT INFERENCE - describing a persons disposition in terms of his/her behavior DISCOUNTING PRINCIPLE - the greater the awareness of the env. the less likely one is to make a C.I. The role of a given cause in producing a given effect is discounted if other plausible causes are present NONCOMMON EFFECTS - the tendency to infer dispositional causes is influenced by what we initially expect an A to do. Unexpected events elicit a search for explanation.The more deviant the behavior from the expected, the greater the likelihood of making a CI b) rewards and punishments social approval (social desirability) - if A acts in a socially approved manner, can we be sure that the behavior was truly intended? If a person acts in a socially disapproved manner what do we think? Jones and Davis - interview study: Ss(subjects) listened to an interview . They were told what the ideal candidatewould be like. The candidate acted either consistently or inconsistently with the description. Ss judged the true dispositions of the As. What do you think happened? What kinds of attributions were made of the As? c) status relationships if a person has a high status, envir. factors are perceived as playing less of a role in his/her good behaviors and more in h/h bad behaviors.

2) the observer's motives an observer's interest and needs become entangled in h/h attributions in many ways: 1.) they determine whether an attribution will be made; 2.) whether h/h seeks understanding in an open-minded way; 3.) whether h/h is preoccupied with a particular causal question; 4.) whether h/s will arrive at certain explanations rather than others

3) perspective of the observer as bystander or actor - (Actor/Observer effect) leads to the fundamental attribution error Two roles: Actor and Observer Fundamental attribution error: the actor tends to attribute his/her behaviors to the situation while the observer tends to attribute the actor's behavior to his/her disposition. Contributing factors: cognitive - information processing and perception differences motivational - differences in self-presentation concerns and other motives Perception and information processing: (Cognitive reasons )meaning is heavily related to the context in which it occurs and contextual information may be interpreted differently by A and O. There are two types of contextual information : cause and effect. cause:

environmental (task difficulty, incentives, etc. intent (what the A meant to do) knowledge of the envir. can be = for A and O knowledge of intent of A can only be inferred by O

effect:

a) information about the nature of the act and its outcome b) information about the A's experiences or feelings a can be = for A and O b only known to A, inferred by O

historical info about the A - not equal for A and O A's focus in on the task and the situation; O's focus is on the actor

Consumerism In the good olden days the principle of Caveat emptor', which meant buyer beware governed the relationship between seller and the buyer. In the era of open markets buyer and seller came face to face, seller exhibited his goods, buyer thoroughly examined them and then purchased them. It was assumed that he would use all care and skill while entering into transaction. The maxim relieved the seller of the obligation to make disclosure about the quality of the product. In addition, the personal relation between the buyer and the seller was one of the major factors in their relations. But with the growth of trade and its globalization the rule no more holds true. It is now impossible for the buyer to examine the goods before hand and most of the transactions are concluded by correspondence. Further on account of complex structure of the modern goods, it is only the producer / seller who can assure the quality of goods. With manufacturing activity becoming more organized, the producers / sellers are becoming more strong and organised whereas the buyers are still weak and unorganized. In the age of revolutionized information technology and with the emergence of e-commerce related innovations the consumers are further deprived to a great extent. As a result buyer is being misled, duped and deceived day in and day out. Mahatma Gandhi, the father of nation, attached great importance to what he described as the "poor consumer", who according to him should be the principal beneficiary of the consumer movement.He said "A Consumer is the most important visitor on our premises. He is not dependent on us we are on him. He is not an interruption to our work; he is the purpose of it. We are not doing a favour to a consumer by giving him an opportunity. He is doing us a favour by giving an opportunity to serve him." Inspite of these views consumerism is still in its infancy in our country, thanks to the sellers market and the government monopoly in most services. Consumer awareness is low due to the apathy and lack of education among the masses. No one has told them about their rights - to be informed about product quality, price, protection against unsafe products, access to variety of goods at competitive prices, consumer education etc. What consumerism lacks here is education and information resources, testing facilities, competent leadership, price control mechanism, and adequate quasi-judicial machinery. The providers of goods and services have been reluctant to give due consideration to consumer interest protection. In present situation, consumer protection, though as old as consumer exploitation, has assumed greater importance and relevance. Consumerism is a recent and universal phenomenon. It is a social movement. Consumerism is all about protection of the interests of the consumers. According to McMillan Dictionary (1985) "Consumerism is

concerned with protecting consumers from all organisations with which there is exchanged relationship. It encompasses the set of activities of government, business, independent organisations and concerned consumers that are designed to protect the rights of consumers". The Chamber's Dictionary (1993) defines Consumerism as the protection of the interests of the buyers of goods and services against defective or dangerous goods etc. "Consumerism is a movement or policies aimed at regulating the products or services, methods or standards of manufacturers, sellers and advertisers in the interest of buyers, such regulation maybe institutional, statutory or embodied in a voluntary code occupied by a particular industry or it may result more indirectly from the influence of consumer organisations" As commonly understood consumerism refers to wide range of activities of government business and independent organisations designed to protect rights of the consumers. Consumerism is a process through which the consumers seek redress, restitution and remedy for their dissatisfaction and frustration with the help of their all organised or unorganised efforts and activities. It is, in-fact a social movement seeking to protect the rights of consumers in relation to the producers of goods and providers of services. Infact consumerism today is an all-pervasive term meaning nothing more than people's search for getting better value for their money. Consumer is the focal point of any business. Consumers' satisfaction will benefit not only business but government and society as well. So consumerism should not be considered as consumers' war against business. It is a collective consciousness on the part of consumers, business, government and civil society to enhance consumers' satisfaction and social welfare which will in turn benefit all of them and finally make the society a better place to live in. Components of Consumerism There are various components of consumerism. First and foremost is self-protection by consumers. Consumer must be aware of his rights, raise voice against exploitation and seek redressal of his grievances. Consumers' consciousness determines the effectiveness of consumerism. It is the duty of the consumer to identify his rights and to protect them. Voluntary Consumer Organisations engaged in organising consumers and encouraging them to safeguard their interests is another important element of consumer movement The success of consumerism lies in the realisation of the business that there is no substitute for voluntary self-regulations. Little attention from the business will not only serve consumers interest but will also benefit them. Some businesses in India have come together to adopt a code of conduct for regulating their own activities. Regulation of business through legislation is one of the important means of protecting the consumers.Consumerism has over the time developed into a sound force designed to aid and protect the consumer by exerting, legal, moral and economic pressure on producers and providers in some of the developed countries.

EFFECTS OF CONSUMERISM Consumerism is becoming the hallmark of most world economies. In the West, it is a common phenomenon, but now even developing countries in the world are resorting to it. Consumerism refers to the consumption of goods at a higher rate. The economy is judged by the production and selling of goods. The gross national product is the sum total of goods and services produced for a specific period at a specific time. The more goods produced and consumed by society the higher the growth rate of the economy. The prosperity of a nation is judged by the per capita income of individuals residing in it. The economy is considered to be doing well if the purchasing power of the people is high. In consumer society, people replace their goods with newer ones. They purchase goods, use them and throw them away. New goods when they become old are replaced by newer ones. The question of repair does not arise People have money to purchase goods in plenty. In case, they do not do so as it leads to recession and depression and also results in unemployment. What are the effects of the consumerism? Consumerism is appreciated in Western economies since a persons standard of living is valued by his or her material possessions. There are certain positive effects such as: Positive Consumerism Primary positive consumerism effects are:

Effects:

More industrial production. A higher growth rate economy. More goods and services available. More advertising since goods manufactured have to be sold. Increased production will result in more employment opportunities. A variety of goods and services to choose from. More comforts for a better living style.

There are always certain pitfalls to a given situation in a society. Material prosperity may be there in consumerism but, it has its negative effects on the people and society at large. Negative Consumerism Top negative consumerism effects are: Effects:

Craving for goods is high. The wants and desires of the people increase. The better their income, the better their purchasing power. But in case, they are not able to do so, then they feel dissatisfied. One is in a rat race to earn more and is forced to cope up with stress and other work related tensions. Material wealth is the deciding factor about whether a society is highly developed or not. Spiritual values are underplayed. This may not be suitable to a person from the East, who generally is appreciative of spiritual values. Over-dependence on labor saving devices. A car for each individual would mean gradual erosion of public transport. Crime rate also increases as wants to possess expensive gadgets increase. Thefts become common and daylight robberies take place. Personal relationships also get affected as people are busy trying to earn more to maintain their standard of living. Cheaper goods are imported from other goods affecting the growth of locally based manufacturing industries. Consumerism has also resulted in ecological imbalances. The natural habitat is being destroyed to create more goods and build more buildings affecting the weather. Global warming will eventually result in health problems. Industrial pollution is affecting people in many ways. People lifestyles have also changed in the sense they are more lavish, full of material comforts rather than focusing on simplicity. The Eastern spiritualism and philosophy has always laid emphasis on simplicity. Gandhian principles and values favor a non-materialistic approach to life. Even well known sages such as Jiddu Krishnamurthi have also eulogized simplicity in ones lifestyles and thinking. Consumerism is also depleting the natural resources of the respective country. Psychological health also can get affected if ones desires are not meant such as depression. Jealousy and envy can lead to crime.

The United States is a consumer economy and is known for its material growth and prosperity. But presently, the economy is reeling under the pressure of recession. People who have lost their jobs are finding it difficult to meet both their ends. In the East, India is also progressing towards materialism, although this goes against its ancient philosophical approach towards materialism, which favors a simple, nonmaterialistic life.