Theoretical Foundation of Customer-Dominant Logic

The guiding principles of relationship marketing and its differentiated economic and behavioral explanatory approaches underpin the customer-dominant logic. Through the customer-dominant logic, the basic ideas of relationship marketing are to be considered and applied to the question of value-creating customer processes. Neoclassical approaches such as utility and profit theory provide a foundation for the customer-dominant logic of the provider and the logic of the customer through the concept of customer value. Neo-institutional approaches such as information economics and the principal-agent theory underpin customer-dominant measures to reduce information asymmetries between providers and customers. Social psychological approaches such as interaction approaches, exchange theory, and the theory of social penetration serve the customer-dominant logic in explaining the development of long-term customer relationships. The individual theoretical approaches are interpreted in relation to the customer-dominant logic.