Reader-Response Theory shifts the focus from the author to the reader, emphasizing how readers create meaning through their interactions with texts. This approach recognizes that different readers may interpret the same text differently based on their unique backgrounds and experiences. Key figures like Louise Rosenblatt, Stanley Fish, and Wolfgang Iser developed concepts such as transactional theory, interpretive communities, and the implied reader. These ideas changed literary criticism by challenging the notion of a single correct interpretation and encouraging diverse perspectives.