Balance Theory

Balance Theory was initially developed by Heider (1958). The tenets of balance theory also have been widely applied and verified in a variety of field of research, such as interpersonal attractions and relationships (Aderman 1969; Rodrigues 1967;

Sussmann and Davis 1975), service quality (Carson et al. 1997), consumer buying decision and behavior (Woodside and Chebat 2001), cause-related marketing (Basil and Herr 2006).

Heider (1958) proposes a basic social system model that is a triad of a focal person (hereafter P), and other person (hereafter O), and some third object (hereafter X) about which they both have opinions. This third entity could be anything such as an idea, a group, a person, a country, a product, or even a transaction of service (see Figure 1).

X

P O

Figure 1 Heider’s Basic Model

In Heider’s basic model, each line represents a relationship, and those relationships can be either positive or negative. Heider uses a positive sign (+) to indicate a positive sentiment relation (likes, is in favor of, praises, etc.) and a negative sign () for a negative sentiment relation (dislikes, in against, criticizes, etc.) among three parties of a given interpersonal relation of the P-O-X type. Hence, there could be eight configurations that can exist among the focal person, the other person, and the third object based on the sign (+ or ) of these relationships. Furthermore, Heider

P: Focal Person O: Other X: Third Object

(1958) suggests that four of them are stable or ―balanced‖ (see Figure 2) and other four are unstable or ―imbalanced‖ (see Figure 3). More specifically, as illustrated by Heider, a triad is balanced when all three of the relations are positive or when two of the relations are negative and one is positive. In other words, a balanced triad when the resultant sign of the algebraic multiplication of the three signs of a given triads is positive. For example, the situation is balanced when P and O have the same attitude toward X where P likes O. On the other hand, a triad is imbalanced when all three of the relations are negative or when two of the relations are positive and one is negative.

Namely, an imbalanced triad when the resultant sign of the algebraic multiplication of the three signs of a given triads is negative. For instance, the situation is imbalanced when P and O disagree regarding X where P likes O. Moreover, imbalanced patterns are fraught with tensions that made them unstable, particularly if the relationships are strong. Thus, if people feel themselves are out of balance, then they are motivated to restore a position of balance. There are three possible ways of changing imbalanced state into balanced state: changing the P-O relation, the P-X relation, or the O-X

Figure 2 Four Balanced Patterns

X

Figure 3 Four Imbalanced Patterns

+ +

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2.3.1 Application of Balance Theory to Service Encounter Quality

The Three Parties in a Service Encounter Triad

Within the context of the current research, a customer is the purchaser and recipient of a service. In a service encounter, quality is partially defined by customer.

Service quality perceptions stem from not only how effectively the service is delivered as compared to how effectively the customer expected the service to be delivered, but also whether the desired transaction type is fulfilled or not. Therefore, service quality, as perceived by customer, can be defined as the extent of the discrepancy between customers’ expectations or desires and their perceptions. If there is under fulfillment of customer expectation in the service performance, poor service encounter quality could be perceived by customers dissatisfied.

A customer-contact employee is the individual who provides services to the customer. The service delivery process is relatively interactive, requiring inputs from both customers and contact employees. Previous research suggests that there are some components of the service encounter for which customer holds the contact employee responsible. For example, customers may expect contact employees to be reliable, responsible, competent, courteous, credible, and attentive. Customers probably further hope that contact employees can exhibit proper demeanor, communicate effectively, and inspire confidence. However, more recently, research suggests that in a service encounter, quality is also partially defined by contact employee. Service quality perceptions stem from not only how customers behave as compared to how the contact employee expect, but also whether the desired transaction type is fulfilled or

not. Therefore, service encounter quality, as perceived by contact employee, can be defined as the extent of the discrepancy between contact employee’ expectations or desires and their perceptions. If there is under fulfillment of contact employee expectation in the service delivery process, poor service quality could be perceived by contact employees who are dissatisfied.

Current research suggests that commercial transaction types that individual likes in service encounter could vary along a continuum from ―exchange‖ to ―communal‖.

Hence, we specify a distinction between two ends of transaction type in service encounter and assumer that either a customer or a contact employee would prefer one transaction type to the other during the service encounter. One of the transaction types is ―commercial communal transaction‖ which refers to a service encounter is liable to be more similar to a meeting between friends than merely economic transactions.

During commercial communal transaction, individual are more likely to view the other one in the service encounter dyad as a friend. The other type of commercial transaction is labeled ―commercial exchange transaction‖ which refers to economic exchange because in this kind of service encounter the benefits that customers or contact employees give and receive do involve only money or products/services.

Furthermore, customers or employees do not like or expect any further personal contacts beyond the transaction in the service.

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C-E-T Relationships in the Service Encounter Context

The relationships among the customer and the contact employee and their attitudes toward the certain transaction type in the service encounter can be explained through the application of balance theory. In present research, we examine a service encounter triad consisting of two people, customer (hereafter C) and contact employee (hereafter E), and a transaction type (hereafter T) about which they both have opinions (see Figure 4).

T

C E

Figure 4 Service Encounter Triad

Furthermore, C-E bond denotes the interpersonal liking between customer and contact employee. We uses a positive sign (+) to indicate that the customer like the contact employee and a negative sign () for disliking for the contact employee.

Second, C-T bond denotes the customer’s attitude toward the certain transaction type.

We uses a positive sign (+) to indicate a customer’s preference and expectation of occurrence of commercial communal transaction and a negative sign () for a customer’s preference and expectation of occurrence of commercial exchange transaction. Third, E-T bond denotes the contact employee’s attitude toward the certain transaction type. We uses a positive sign (+) to indicate a contact employee’s preference and expectation of occurrence of commercial communal transaction and a negative sign () for a contact employee’s preference and expectation of occurrence of commercial exchange transaction.

T: Transaction Type (communal or Exchange) C: Customer

E: Contact Employee

According to the balance theory, there could be eight configurations that can exist among the customer, the contact employee, and transaction type based on the sign (+ or ) of these relationships. Furthermore, current research proposes that four of them are balanced (see Figure 5) because in these patterns all three of the relations are positive or when two of the relations are negative and one is positive. Other four patterns are imbalanced (see Figure 6) because in these patterns all three of the relations are negative or when two of the relations are positive and one is negative.

T

Figure 5 Four Balanced Patterns

T

Figure 6 Four Imbalanced Patterns

Moreover, imbalanced patterns are fraught with tensions that made them unstable.

Therefore, if the customer or the contact employee feels themselves are out of balance, then they are motivated to restore a position of balance. There are three possible ways of changing imbalanced state into balanced state: changing the C-E relation, the C-T relation, or the E-T relation.

+ +

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