Why is empathy important for understanding customer perception?

While hypothesizing about customers we sometime tend to believe things are "obvious". Practises that have worked well in other markets will work in our markets too. What we believe is "good" for the customer he will accept and be happy with. But people rely on their own experiences and world view to make decisions. When trying to predict customer reactions to a new stimulus, it important to understand the customers' world view to be able to make a good hypothesis about their behaviour.

I recall an anecdote from my early years while I was managing channels for a consumer durable brand in Kolkata. Some retail outlets (in the posh areas) had air conditioners and slowly more outlets started adopting air-conditioning. My view was that having an airconditioned shop was a big plus. Customers would would be more comfortable in the shop and be receptive to the salesperson. I am talking if a time when there was there was no internet and buyers had many queries and the retail outlet has a big role in customer's education and the customer ended spending a lot of time in retail outlets.

One of our retail partners who was very sharp and forward looking however, did not seem to be inclined to get his outlet air-conditioned. His customers were mostly middle class and price sensitive. I suggested to him that he should get his shop airconditioned before the onset of summers. Else customers may move to air-conditioned outlets. He nodded and said he would think about it.

However a few weeks passed and he did not start work on air conditioning. On a visit I asked him again as when he would get his shop air-conditioned. He said, it is not the right time. He would probably do it a year or two later. I argued as to why should he not stay ahead of the curve but getting his shop air-conditioned before or along with others?

His reply was an insight about his empathy with customers. He said that an airconditioned shop is perceived as more expensive. Air-conditioned shops need to keep their door shut which is a barrier for customers who are used to entering such shops. Some even think that the shop is shut. I was taken aback by the thought process. But later saw its merit. Customers take time to adapt to change and as a retailer he needs to understand and synchronise the pace of change of the business with the that of the customer. His role is not to foster but manage change.

Do share your own anecdotes of customer behaviour, that your have observed in the market.