Lay Theory In Marketing

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In a seminal article that introduced the concept of service dominant logic (SDL) as a new perspective in marketing, Vargo and Lusch (2004) stated that marketing has shifted from good dominant logic (GDL) perspective, where tangible output with discrete transaction becomes a central point, to the perspective oriented to service (SDL) toward intangible output with relational exchange process becomes a central point. Therefore, this SDL perspective learning on relationship marketing, particularly in the relationship area between customer and provider (Gruen and Hofstetter, 2010). In SDL, customer has a role to participate actively (operant resource) in the value creation process and becomes co-producer of the service that will be consumed (Vargo…show more content…
The most researched of lay theory is implicit self theory (IST), which focuses on individual soft characteristics (Park and John, 2010). Dweck (2000) and Dweck and Leggett (1988) indentified two types IST, namely incremental theory and entity theory. Individuals supporting incremental theory (then we call incremental theorist) view personal quality has a soft characteristic and it can be improved by their own efforts. On the other hand, individuals who support the entity theory (then we call entity theorist) view that personal quality as something fixed and it can’t be changed by their own…show more content…
The provider’s participation facility is essential to encourage a better quality relationship between provider and customers, and ultimately will lead to loyalty. In accordance with the statement, the universal aim of business world practitioner is the increase of customer loyalty (Beerli, et al., 2004) so that the customer loyalty behavior should always be considered as a consequence of marketing activity. The main purpose of this research is to examine the role of provider’s participation facility to loyalty behavior which is mediated by relationship quality, as well as the relationship between provider’s participation facility and relationship quality which is moderated by

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