Earn more: The Equity theory
If you do what you’ve always done, you will get what you’ve always got.
I will show you how to double your income through the Equity Theory. Making more money is not as hard as you think. Just follow the tips that I will be sharing with you. I will explain the Equity Theory in three aspects; Added Value, Additional Information, and Attitude.
The Equity Theory considers all kinds of social relationship ranging from casual friendship to the intimate ones. The buyer-seller relationship is one of such relationships.
In any relationship, people constantly evaluate the relative equity of their involvement compared to other relationships. Psychologically, people check to see if what they give to such relationships balances what they get out of it. People who feel they are receiving more than they deserve from a transaction experience a psychological need to restore balance.
When people enter into a business relationship, they often want more than they invested. If you can exceed their expectation, they may attempt to restore balance by:telling someone about the positive experience, becoming a repeat customer, or developing a personal relationship with you. The challenge then, is to create positive imbalances by exceeding customer expectations. Now, let us look at the Equity Theory with added value.
EQUITY THEORY WITH ADDED INFORMATION
Value is determined by the quality of the product relative to its price. Adding “something” to your products or services can make it stand out. Packaging your products can enhance the perceived value. One dry cleaner used to give me a hanger and nylon bag, anytime I dry-clean my suit. Aside value, you can give customers information.
EQUITY THEORY WEITH ADDED INFORMATION
Save your customers time by telling him or her how to use your products or services. Don’t assume that they know how to apply it. Some people may be using your product for the first time. Save your customer’s money. One cyber café offers free information on how to explore the Internet. Many people go there to learn how to surf the Internet. Subsequently, they go back and pay. You may consider providing your customers a newsletter. You can also show customers how you used the product.
EQUITY THEORY WITH ATTITUDE.
Nothing determines your success in business more than your attitude. Your attitude towards customers will determine if they will come back or not. J. Paul Getty, when asked what was the most important quality for a successful executive replied, “It doesn’t make much difference how much other knowledge or experience an individual possesses; if he is unable to achieve results through people, he is worthless as an executive. “ The ability to get along with people is an attitude of high achievers.
One research on why customers quit revealed this stunning fact.
1% die
3% move away
5% quit because of competitive reason (price)
14% product dissatisfaction
68% quit because of an attitude of indifference toward them by some employees.
Your attitude to your customers will make them repel you or receive you.
Remember the Equity Theory with added value, added information, and attitude With this you can easily double your profit.
Agbolade Omowole runs Interpersonal Skills Trainings for corporateorganizations. He trains for Terry E. Gillen, Institute of Personneland Development UK. He is also a financial adviser at Aims AssetManagement Limited.
If you do what you’ve always done, you will get what you’ve always got.
I will show you how to double your income through the Equity Theory. Making more money is not as hard as you think. Just follow the tips that I will be sharing with you. I will explain the Equity Theory in three aspects; Added Value, Additional Information, and Attitude.
The Equity Theory considers all kinds of social relationship ranging from casual friendship to the intimate ones. The buyer-seller relationship is one of such relationships.
In any relationship, people constantly evaluate the relative equity of their involvement compared to other relationships. Psychologically, people check to see if what they give to such relationships balances what they get out of it. People who feel they are receiving more than they deserve from a transaction experience a psychological need to restore balance.
When people enter into a business relationship, they often want more than they invested. If you can exceed their expectation, they may attempt to restore balance by:telling someone about the positive experience, becoming a repeat customer, or developing a personal relationship with you. The challenge then, is to create positive imbalances by exceeding customer expectations. Now, let us look at the Equity Theory with added value.
EQUITY THEORY WITH ADDED INFORMATION
Value is determined by the quality of the product relative to its price. Adding “something” to your products or services can make it stand out. Packaging your products can enhance the perceived value. One dry cleaner used to give me a hanger and nylon bag, anytime I dry-clean my suit. Aside value, you can give customers information.
EQUITY THEORY WEITH ADDED INFORMATION
Save your customers time by telling him or her how to use your products or services. Don’t assume that they know how to apply it. Some people may be using your product for the first time. Save your customer’s money. One cyber café offers free information on how to explore the Internet. Many people go there to learn how to surf the Internet. Subsequently, they go back and pay. You may consider providing your customers a newsletter. You can also show customers how you used the product.
EQUITY THEORY WITH ATTITUDE.
Nothing determines your success in business more than your attitude. Your attitude towards customers will determine if they will come back or not. J. Paul Getty, when asked what was the most important quality for a successful executive replied, “It doesn’t make much difference how much other knowledge or experience an individual possesses; if he is unable to achieve results through people, he is worthless as an executive. “ The ability to get along with people is an attitude of high achievers.
One research on why customers quit revealed this stunning fact.
1% die
3% move away
5% quit because of competitive reason (price)
14% product dissatisfaction
68% quit because of an attitude of indifference toward them by some employees.
Your attitude to your customers will make them repel you or receive you.
Remember the Equity Theory with added value, added information, and attitude With this you can easily double your profit.
Agbolade Omowole runs Interpersonal Skills Trainings for corporateorganizations. He trains for Terry E. Gillen, Institute of Personneland Development UK. He is also a financial adviser at Aims AssetManagement Limited.
Contact:
E-mail: nigeriaslifecoach@gmail.com
E-mail: nigeriaslifecoach@gmail.com
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