What Is Interdependence Theory?
Hello everyone. How do you think about relationships between people?
Interdependence theory views all interpersonal relationships as a system of intertwined choices and influences.
For example, a conversation with a friend or cooperation in business is not simply an exchange of information, but rather involves weighing up the rewards” that each person receives and the costs” they incur.
This theory provides a framework for analyzing human behavior not only in terms of emotions but also in terms of situational settings, psychological evaluations, and long-term past experiences.
Where Did It Originate?
Interdependence theory was formalized in the 1970s by fusing ideas from social psychology and economics.
It is based on social exchange theory, which views human relationships as “exchange,” and game theory, which predicts the outcome of matches.
In the process of developing these theories, they were modeled as structures that create ongoing relationships, rather than mere temporary interactions.
This became the theoretical basis for understanding interactions between people from a bird’s-eye view and applying it to system design and organizational management.
What Is the Principle of Structure?
The principle of structure in interdependence theory reveals aspects of the “situation” that shape relationships.
Specifically, we analyze the situation from multiple angles, including who is “dependent” and to what extent, whether the dependence is mutual or unidirectional, and what kind of resources and means have influence.
This makes it possible to predict that, even within the same project or contract, combinations with a high level of dependence tend to build long-term cooperative relationships, while those with low levels of dependence tend to remain in quick business relationships.
What Are the Six Dimensions?
Looking at the situational setting in more detail, six dimensions emerge:
The first is the degree of dependence, the second is the mutuality of dependence, the third is the degree of congruence of interests, the fourth is the diversity of means of influence, the fifth is the degree of influence on the future, and the sixth is the completeness of information.
For example, in joint development situations, technologies and know-how are highly complementary and have a significant impact on future results.
On the other hand, in the case of a one-time sales contract, the degree of mutual dependence and future influence is low, and decisions are often made based solely on comparisons of price and convenience.
What Is the Principle of Transformation?
The principle of transformation concerns how to “recognize” a given situation, “evaluate” it, and take action.
The key here is the psychological conversion process between “rewards” and “costs.”
Rewards include recognition, satisfaction, and expectations for future returns, while costs include financial burden, time and effort, and fear of risk.
Depending on how you interpret the situation from your own perspective and that of the other person, you can behave in completely different ways even in the same environment.
What Are Rewards and Costs?
Rewards aren’t always about monetary value.
For example, trying out a service for free may itself provide a sense of security, lowering the psychological hurdles to signing up for a paid contract later on.
On the other hand, if participants feel that the procedures required to participate or register or the conditions for cancellation are too strict, they will see this as a significant cost and refrain from taking action.
The application of the conversion principle is to quantitatively understand these psychological rewards and costs and predict the extent to which the user can tolerate the burden.
What Are Psychological Stances?
The transformation stage involves multiple psychological stances, such as cooperative, competitive, or avoidant.
Trust in others, a sense of fairness, and the desire to maximize self-utility are intricately intertwined, and a particular attitude is selected.
For example, if a company has a strong competitive stance in pursuit of short-term profits, disclosure of information to the other party during negotiations and transactions may be restricted, making it difficult to build long-term relationships of trust.
What Is the Principle of Interaction?
The principle of interaction is expressed in the formula: ”Interaction is a function of situation x subject A x subject B.”
This makes it clear that even under the same circumstances, if the characteristics and psychology of the people involved differ, the outcomes will vary greatly.
When analyzing negotiations between companies or interactions with customers, this formula can be used to predict which combinations are likely to produce cooperative results.
What Factors Influence Decision-Making?
Three elements are deeply involved in decision-making through interaction.
One is ”outcome”, which comprehensively evaluates the rewards and burdens obtained.
Next, we use the “Comparison Level” to measure how satisfied you are compared to past experience and general standards.
Comparison Level for Alternatives evaluates how attractive an option is compared to other options.
We will consider these issues comprehensively and decide on the final course of action.
What Is the Principle of Adaptation?
The principle of adaptation refers to the process by which people repeatedly encounter the same situations, learn from their experiences, and optimize their behavior patterns.
When users who are cautious the first time experience the expected results multiple times, their sense of risk fades and the hurdles to action are lowered.
Conversely, if we experience negative outcomes multiple times, we become more sensitive and avoid similar situations.
When designed intentionally, these learning effects can lead to stronger long-term relationships.
How Does Habituation Work?
Habit formation is a typical outcome of the principle of adaptation.
For example, if users repeatedly receive benefits from a membership program that renews on a fixed date every month, they will naturally become aware of the timing and automate their usage behavior.
Additionally, the adaptation process can be accelerated by appropriately inserting notifications and reminders.
In this way, making contact with customers a habit is the key to improving retention rates.
How Is It Used in Marketing?
To apply interdependence theory to marketing, we design relationships with customers as ”long-term interdependent relationships,” rather than just buying and selling relationships.
In particular, it is important to consistently adjust the balance between rewards and costs, control expectations, and evaluate alternative options.
This not only makes it difficult for customers to quit doing business with your company, but also makes them voluntarily choose to continue using your company.
What Are the Points of Program Design?
With membership or subscription models, you lower the initial hurdle by letting users experience the rewards through a free period or trial, and then set appropriate costs.
At the same time, we will provide continuation benefits such as points and badges to build a high level of dependence that makes it difficult to cancel midway.
Furthermore, it is essential to always clarify the differences from other companies and disseminate information that reduces the attractiveness of the company as an alternative option.
These designs are repeatedly verified to maximize adaptation effectiveness.
How About Detailed Application Examples?
For example, let’s say you run an online learning service.
First, we offer a free introductory course when you first register, visualize your learning outcomes, and strongly reward you with a sense of accomplishment.
Next, we further reduce the psychological burden by paying the cost in installments when switching to a paid course.
We incorporate a point system as an incentive for continued enrollment, and when a certain number of points is reached, we will grant discount rights for the next time onwards.
By using the recommendation function to present learning materials that match learning progress and raising expectations, the retention rate and satisfaction level of learners will increase as a result.
What Should We Watch Out For?
A common pitfall when using interdependence theory is to become so dependent on customers that you overlook your own risks.
Even if costs are drastically reduced, it will not be sustainable if profitability deteriorates, and excessive dependence may lead to deterioration of relationships in the event of trouble.
Insufficient disclosure can also lead to a loss of customer trust and damage long-term loyalty.
Therefore, it is important to maintain balance and transparency in each phase of situation design, psychological transformation, interaction, and adaptation.
Summary
Interdependence theory is a powerful framework for comprehensively analyzing interpersonal relationships.
By designing everything from setting to psychological assessment, interaction, and adaptation, you can build sustainable relationships with your customers.
In marketing, the key to success is to comprehensively manipulate rewards and costs, expectation levels, and alternative options to appropriately guide customer behavior patterns.
I encourage you to incorporate interdependence theory into your company’s policies to create stronger, longer-term customer relationships.
Well, that’s it for today’s video. thank you very much.
This article uses material from the Wikipedia article “Interdependence theory” which is released under the Creative Commons Attribution-Share-Alike License 4.0.