Question

Harvard Professor Theodore Levitt, marketers must never listen to consumers because consumers lie. Levitt meant that often consumers when asked do not know what they want and cannot articulate what they are looking for. Yet all of our research centers on understanding what customers want, how do we understand what Levitt says customers themselves do not understand?

Answer 1

Consumers are the king. They know what they want maybe not in the product form but from the utility point of view. Hence, the only expectation they have from the purchase of goods and services is a better and comfortable lifestyle. If as a producer we are supplying them with the products that place them on a higher indifference curve; they would readily purchase our product. Like the classical economist says supply creates its own demand. None of us would have imagined cell phones 3 decades ago. A revolutionary product like iphone has penetrated the market so well that the Apple phone users wait for their new launch every year. The per head expenditure on cell phones has increased many folds. Therefore, companies and corporates need to work on the products that would simplify the life of the consumer and their product will be a sure shot success.