FACULTY OF COMMUNICATION AND MEDIA STUDIES

COMMUNICATION THEORY (COM 530)

TITLE:

SOCIAL EXCHANGE THEORY

PREPARED FOR:

MDM NORHAYATI BINTI MOHD RAMLEE

MEMBERS:

RAFIQAH MAISARAH BT MOHAMAD RIDZWAN (2019455896)

NUR AISYAH AQILAH BINTI MD YUSOF (2019489558)
MOHAMAD AQIL FITRI B MOHD ROSLI (2019456068)
NUR DIYANNA BINTI NORHATA (2019489032)
HAZNILA BINTI LAZMAN (2019489124)

GROUP: MC244S1A
TABLE OF CONTENT

DESCRIPTION PAGES

Introduction 3-4

Objectives 5

Scope of Project 6

Significant 7

Overview 8

Literature Review 9-10

Video Outline 11-15

Schedule, Budget & Role of Members 16-17

Conclusion 18

References 19

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INTRODUCTION

Social Exchange Theory was developed by thinkers; George C. Homans, John W.

Thibaut, Harold H. Kelley and Peter M. Blau in the late 1950s. They proposed an
ideology arguing that social behavior is the result of an exchange process.

Sociologist George Homans (1950, 1958, 1961) proposed that this theory is based
on a concept where people think about their relationship in economic terms as they
tab a score of rewards and costs based on their relationship. This can occur when
one party provides another a valued and beneficial resource and the other party is
obliged to return the beneficial source. People decide to start a relationship or
continue a relationship after a positive cost-benefit analysis has been done, which is
when the benefits in that relationship outweigh the cost (Cherry, 2015). In simpler
terms, if the risks dominate more than the benefits, people will choose to put an end
or abandon a certain relationship. A commitment in a relationship is depending on
someone’s profitability.

This theory suggested that these counts occur on romantic relationships, friendships,
professional relationships and a passing relationship as simple as exchanging words
with a stranger in public transport rides (Jeni Mcray, 2015). It is also said that this
theory can be applied to a larger audience such as in the working environments or in
class and not only in interpersonal relationships.

There are said to be 2 types of relationships in Social Exchange Theory. There is the
positive relationship where the rewards outweigh the costs. Rewards can be defined
as elements of relational life with positive value.

Negative relationships represent the side where a relationship does not give any
benefits although one puts up with the costs. Costs can be defined as elements of
relational life with negative value. If one has decided the outcomes, they will continue
or terminate the relationship depends on the calculations

The Social Exchange perspective argues that people calculate the overall worth of a
relationship by subtracting its costs from the rewards (Monge & Contractor, 2003):

Worth = Rewards – Costs

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Laura Stafford (2008) qualifies that these economic and social exchanges have
differences. Social exchanges involve a connection with another person which
involved trust, more flexible, no legal obligations and rarely involve explicit
bargaining.

This theory received many criticisms and repercussions as most of the people think
that it attributes narcissistic motives to any behavior, by assuming that these
decisions are made to be taken rationally. As Social Exchange Theory may appear
to be an intensively intense theory, it indicates that all human actions to rational
decisions in a different and interesting perspective of how the society functions.

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OBJECTIVES

We have chosen Social Exchange Theory to complete our video assignment

because we agreed that this theory can be very useful to our audience and the
message we provided in the video could spread awareness on self-worth. Therefore,
listed are our objectives on making this project happen;

• To inform the audience about Social Exchange Theory.

The video is made for the audience to learn and evaluate the sociological framework
of worth that involved costs and rewards in Social Exchange Theory. It will also
make them understand the interdependence of relationships and the set of norms
that is conducted in the contractual relationships.

• To make our audience understand about the importance of self-worth.

In this video, we portray that an individual has to discover the benefits and risks
before forcing any relationship. These two components which is rewards and costs
must be considered before continuing or leaving the certain relationship. And
individual should know that they do not owe anyone anything if they are treated
unfairly and they can choose to stay away from toxicity in a relationship by
prioritizing their own feelings.

• To reflect our audience in the nature of interpersonal relationship based

on the theory.

As a whole, relational life is a process. We would want the audience to grasp in the
video that relationships are mutual where they depend on each other. Spreading this
message could also make our audience understand that no one should live by
themselves and everyone need a company in order for them to make rational
decision.

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SCOPE OF PROJECT

This project is to study the Social Exchange Theory. Social Exchange theory
proposes that social behavior is the result of an exchange process. The purpose of
this exchange is to maximize benefits and minimize costs. Social Exchange theorists
provided two type of assumptions; one that is based on human nature and the one
that is bases on human nature in relationship.

Assumption that Social Exchange Theory makes about human nature includes;

• Human seek rewards and avoid punishments.

• Human are rational beings.
• The standards that human use to evaluate costs and rewards vary over time
and from person to person.

Assumptions that Social Exchange Theory makes about the nature of relationships
includes;

• Relationships are interdependent.

• Relational life is a process.

We have fully utilized these assumptions in our video to explain the meaning of
these assumptions through a storyline presented in the video. We have also further
explained the message in each assumption in our literature review.

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SIGNIFICANT

The project that we are assigned to do can help explain briefly on the theory of
Social Exchange Theory. It also provides information on how the theory can be
practiced by individuals or in a relationship. In our video, we have prepared
situations that allows Social Exchange Theory to be used by an individual to make
decision on self-worth and a method used by people in relationship to determine how
their life is interdependent. Therefore, this theory is significant to;

1) Individual

Our video shows that an individual can calculate their worth if they are no longer
comfortable with their partner. This calculation is to determine the outcome for one’s
relationship. Positive outcome may help the individual to figure out ways to make the
relationship work again while negative outcome can result to the end of the
relationship. Every person, no matter the situation, can also practice Social
Exchange Theory to help them make a better decision and also to know their self-
worth.

2) Society

This theory helps the society to realize that everyone in this world seek rewards and
not punishments. As said in the Social Exchange Theory, when humans felt driven,
they will tend to avoid the feelings in return. The video that we have prepared also
shows that how much an individual think they love someone, once their partner does
inappropriate things to them, they will consider leaving the relationship as it is
abusive and brings negativity in life.

3) Academic

The video that we have prepared help students understand the idea behind Social
Exchange Theory and how it could help in decision making in a relationship and how
costs and rewards can be used both for individual and relationship. Therefore, it
could also help students to understand how individual can evaluate their worth in any
relationships.

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OVERVIEW

In this project, we were assigned to make a video on a topic learned in the course
Introduction to Communication Theory. The topic that we choose is based on the
research of John Thibaut and Harold Kelley which is the Social Exchange Theory.

In the video, we put on a play in which we act out a script in the service of delivering
the content. We come up with a real-life event based on the topic. Overall, Social
Exchange Theory is based on the notion of that people think about their relationships
in economic terms. Social Exchange theory proposes that social behavior is the
result of an exchange process. The purpose of this exchange is to maximize benefits
and minimize costs.

Therefore, we have chosen a storyline that tells about the use of Social Exchange
Theory in a relationship of married couple. We have further discussed on our
storyline in our video outline.

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LITERATURE REVIEW

According to Roloff (2009) and Stafford (2008), Social Exchange theorist argue that
people assess their relationships in term of costs and rewards. All relationships
require time and effort from each individual in order to maintain good terms. This
happen for any kind of relationship. People also calculate their overall worth of a
particular relationship by subtracting its costs from the rewards it provides (Monge &
Contractor, 2003).

Social Exchange theorist also predicts that people would determine the outcome of
their relationship based on the calculation people make on the worth of their
relationship. This means that people could decide whether or not to leave a
relationship by calculating based on the costs and rewards they receive from a
relationship.

Social Exchange Theory explains on how human evaluate their life like a
marketplace. It is stated as so because Social Exchange Theory is based on a
metaphor of economic exchange. The assumption of this theory is divided into two
conceptualizations that focuses on human nature of individuals and description of
the relationship between two people.

Assumption that Social Exchange Theory makes about human nature includes;

• Humans seek rewards and avoid punishment.

This assumption explains about individuals that behave according to how they are
motivated by some internal drive mechanism. When an individual felt driven, they will
tend to reduce the feelings in return. This explains how humans reward themselves
when they receive punishment. Roloff (1981) claims that “To be rewarded means
that a person had undergone drive reduction or need fulfillment”.

• Humans are rational beings.

The second assumption is critical to this theory. This theory explains that within the
limits of information that is available to people, they will calculate the costs and
rewards of a given situation and guide their behaviors accordingly.

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This assumption also leads to the fact that people will go over rewarding choice
instead of staying in a costly situation. It is common that people will opt for rewarding
situation as an alternative. According to James White, David Klein and Todd Martin
(2014), assuming rationality is not the same as saying that people engage in
rationalization.

• The standards that humans use to evaluate costs and rewards vary over time
and from person to person.

The last assumption made about human nature explains how the evaluation of costs
and rewards is not the same for everyone and it can also change over time. This
also means that there are no one standard can be applied to everyone to determine
what is a cost and what is a reward. Social Exchange Theory claims that although
individuals may differ in their definition of rewards, we are motivated to maximize our
profits and rewards while minimizing our losses and costs (Pascale & Primavera,
2016).

Next, assumptions that Social Exchange Theory makes about the nature of
relationships includes;

• Relationships are interdependent.

This assumption stated that in human’s approach to relationship, they developed a

set of principle that they called Game Theory. In the theory lies a classic game called
the Prisoner’s Dilemma where two prisoners are being questioned about a crime
they deny committing. Both prisoners are separated during the questioning and they
are given two choices; to confess their crime or persist in their denials. The game
shows that the outcome from both of them is not in their own hands completely.
Instead, their outcome is a result of the combination of their responses. This shows
how a relationship is interdependent.

• Relational life is a process.

Researchers acknowledges the importance of time and change in relational life.

Time affects exchanges because past experiences guide judgements about rewards
and costs, and these judgements impact subsequent exchanges.

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VIDEO OUTLINE

Jeffri and Teha are both married for many years. They were so happy for a few years
until Jeffri realize that Teha cannot give him a baby. Jeffri started to get angry of
everything that Teha did. He criticised about how Teha served his food and about
giving him children. He also started to mentally abuse her. Teha as a good wife,
cannot do anything as she has to be loyal to her husband. She started to get sad
and crying all night. One day Teha just cannot stand Jeffri behavior she started to
meet her best friend Zati to ask for some advice. Zati ask her to get some time alone
to list out all the Cost and Reward about her relationship with Jeffri.

SCENE 1

INT.TEHA HOUSE

JEFFRI just got back from work and goes straight to the dining table waiting for his
food to be served by TEHA.

TEHA:
Here Abang I prepared some food for you. Eat it before it gets
cold.

JEFFRI:
Oh my God seriously Teha? Is this all you got for me?

TEHA:
I’m sorry but this is all we have. The pocket money that you
gave me is not enough.

JEFFRI starts to get closer to TEHA.

JEFFRI:
Hey listen, you cannot give me a child and now you can’t even
cook my meal?

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JEFFRI walks away from the dining table.

TEHA:
What’s wrong with you? Where are you going?

SCENE 2
INT. HOSPITAL
TEHA went see the DR ISKANDAR to know her test results whether she can get
pregnant or not.

DR ISKANDAR:
Look, Teha, I have bad news for you…

TEHA:
What is it, doctor…? I’m not sure if I can take it.

DR ISKANDAR:
It’s a hard pill to swallow but… you can no longer get
pregnant due to your sickness.

TEHA:
(MONOLOGUE) Ya Allah, how do I confront to Jeffri about this?

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SCENE 3

INT. TEHA HOUSE

TEHA got back from the hospital and felt so scared to tell JEFFRI about her test
results.

TEHA:
I’m home.

JEFFRI:
Where have you been, Teha?

TEHA:
Abang, I just got back from the hospital. I called you, but
you didn’t pick up.

TEHA continued the conversation with the intention to tell JEFFRI about the test
results.

TEHA:
Abang, the doctor told me that… I can’t get pregnant anymore…
because I’m sick.

JEFFRI:
Okay, so now you’re telling me that you’re sick? Come on Teha,
you gave me nothing but excuses, I am so done with you!

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SCENE 4

INT. TEHA HOUSE

JEFFRI just got back from work looking so messy and tired. He felt outrageous at the
same time.

TEHA:
Abang, where have u been? I have been waiting for you.

JEFFRI:
ARGHH, can u just keep quiet?

JEFFRI pushed TEHA and she fell to the floor.

SCENE 5

EXT. TEHA MEETS WITH HER BEST FRIEND, ZATI AT A PARK

TEHA decided to meet her best friend, ZATI, to ask for opinion and some advices
about her situation with JEFFRI.

TEHA:
Zati, what should I do now? Jeffri is no longer nice to me
since the day he figured out about my illness...

ZATI:
Teha, if you really can’t take it, I think you should just get
a divorce.

TEHA:
But Zati, I still love him as he is my husband. Isn’t there
any other way?

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 ZATI:
Well, I do have an idea. Why don’t you have your own time, in
a quiet place, and list out the costs and rewards of your
marriage. If there’s more rewards than costs, then you should
probably work things out with Jeffri. What say you?

TEHA:
*nod and smile* Thank you, Zati.

SCENE 6

EXT. ROOFTOP OF TEHA FLAT

TEHA starts to sit alone and list all the cost and rewards that her best friend, ZATI,
suggested.

COST & REWARD: JEFFRI

COST REWARDS

Complaints about my cooking Can keep me company

Thinks I’m troublesome

Upset about me not being able to get pregnant

Went out until midnight

Likes to yell at me

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SCHEDULE, BUDGET & ROLE OF MEMBERS

Schedule

To complete this Social Exchange Theory video project took us around 2 weeks on
completing this video. The journey starts with a brainstorming session with all the
members. Each one us pitch an idea where we list out all the storyline and choose
the best out of all. Then after choosing the best storyline, we consult with our lecturer
on the storyline. After we got approval from our lecturer, we started the shooting the
next day where we go to one of our friend’s house located in Shah Alam.

For the second day of shooting, we went to one of our member house located in
Kuala Lumpur. Next, after we done with all our shooting, we started editing process
which took us for 1 week to put compile all the shooting videos to make it a story. We
add background music to the video and cut some unnecessary footage.

Budget

For this project, we spent most of our money on gas and using grab. For the first day
shooting, we travelled using Grab to our friend’s house which is in Shah Alam. For
the second day of shooting, we use one of our members car to go to Kuala Lumpur
and we all decided to share money on gas. For equipment, we used only phone to
record all of our video and borrowed our friend stabilizer. We did not spend money at
all on equipment. Other than that, we shared our money on buying the CD and
printing the report

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Role of Members

All our team members carried out their assigned task for this video project
responsibly. Each of us have our focus to make this project a successful one. We
are very satisfied with the outcome of our project as each of us have put in full
commitment and played a good teamwork.

Below are our team members and their roles for our video project;

• Nur Diyanna Hatta – Actress (Teha).

• Rafiqah Maisarah – Script Writer, Cameraman.
• Haznila Lazman – Director, Actress (Zati).
• Aisyah Aqilah – Video Editor.
• Aqil Fitri – Main Cameraman.

Other than our responsibility in completing the video project, we had also gathered
our energy as a team to complete this report. Everyone in our team is responsible in
writing out our project idea and the relation to the topic we have learned in class.

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CONCLUSION

Social Exchange Theory or SET is based on the notion that people think about their
relationships in economic terms. People count their worth by comparing the costs
they received in a relationship, which means the elements of rational life that have
negative value to a person, with their rewards, which are the elements of a
relationship that gives positive impacts.

We have showed listed assumptions from literature review in our video as explained
in our video outline. It explains briefly how the theory should be practiced in a
relationship. The video prepared can also educate our audience on the importance
of this theory in everyday life. We opine that deciding on whether or not to stay in a
relationship is part of humanity as people can defend their own happiness and
decide what is best for a person. Relating it to the theory, it is stated that an
individual can practice Comparison Level (CL) to compare what they have and what
they think they should receive in a relationship.

Preparing this video assignment also taught us that everyone should learn how to
avoid situations that they do not favor or are not comfortable in. We as human
beings are not tied to another person’s life and it is not our responsibility to get hurt
just to make the other party happy. Therefore, calculating our worth can be the best
way to identify other’s behavior towards us and if we feel terrible in a relationship, we
can choose to go on with our life not depending on the other party.

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REFERENCES

Mcray, Jeni (2015). "Leadership Glossary: Essential Terms for the 21st Century".
Credo Reference. Mission Bell Media. Retrieved 21 October 2018.

Cherry, K. (2015). What is Social Exchange Theory in Psychology. About.com

Education. Retrieved from;
http://psychology.about.com/od/sindex/g/socialexchange.html

Redmond, Mark V., "Social Exchange Theory" (2015). English Technical Reports
and White Papers. 5. http://lib.dr.iastate.edu/engl_reports/5

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