Difference Between Social Norm and Market Norm

While we may not see it, the society is driven by hidden forces that affect emotions, behaviours and thoughts. These are categorized into social norms and market norms. While some norms such as helping a friend with an assignment or helping them with some basic work have no expected instant payback, others such as car dealerships involve prompt or planned payments. This article outlines the differences between social norms and market norms. 

What is a Social Norm?

This refers to collective representations or individual perceptions of certain conduct including customs, values and traditions. These represent an individual’s understanding of what others think is the right thing to do in a certain situation hence govern how members of society behave. 

These include friendly requests such as watching a friend’s kid, helping a friend with chores and even more tasking duties such as helping someone with their taxes. Such acts don’t have an instant payback and are derived from the need to help those in the community. 

What is a Market Norm?

These are actions that imply comparable benefits and include prompt payments. These norms govern what one is willing to do for a certain amount of money. Common terms used in market norms include prices, interests, wages, costs, contracts, benefits and rent among others. 

For instance, the sale of products can not be complete without the mention of money, irrespective of whether money changes hands or not. When money is mentioned in a deal, market norms take over social norms. 

Similarities between social norm and market norm

• Both guide emotions, behaviours and thoughts of groups of people

Differences between social norm and market norm

Definition

Social norms refer to the collective representations or individual perceptions of certain conduct including customs, values and traditions. On the other hand, market norms refer to actions that imply comparable benefits and include prompt payments. 

Objectives

While social norms aim at helping close people and others in society with no expected payback, market norms aim at the exchange of items with an amount of money of equal value. 

Type of transactions

Social norms involve activities between friends and family. On the other hand, market norms involve business transactions. 

Money involvement

While there is no money involved in social norms, money is involved in market norms. 

Social norm vs. Market norm: Comparison Table

Summary of Social norm vs. Market norm

Social norms refer to the collective representations or individual perceptions of certain conduct including customs, values and traditions. They aim at helping close people and others in society with no expected payback. On the other hand, market norms refer to actions that imply comparable benefits and include prompt payments. They aim at the exchange of items with an amount of money of equal value. 

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