Know-How Exchange : Customer Behavior

Firstly, customers often don't know or can't articulate their needs adequately - they are better able to say how they respond to a real items, but struggle to accurately describe how they would react to hypothetical items.

Secondly, businesses are 90% geared up to production. They have sunk costs, resources and plant that can't be switched on and off as customer whims shift. For practical purposes they will aim products that are satisfactory to most people, rather than perfect for everyone. Individuals in the business also have issues of credibility and political power involved in getting certain ideas supported.

In the end, businesses build a limited number of products to meet a wide variety of needs. Customers appreciate that they have to make a compromise between their ideal and the price they will be charged and the time to get the product. For a wedding cake a customer may go absolutely for their perfect idea, but they will pay and it will take time. For a cake for lunch something quick and cheap will do.

The answer is simple:
Most businesses do not conduct even rudimentary market research. The decision makers at those companies either feel that they “know” what their customers want, or see research as a luxury item they simply have no money for.
I invite you to read the following:

Can you afford NOT to do market research?

Measuring and improving customer satisfaction in Vancouver.


hope this helps,

Luke Zukowski