Final answer:
Dysfunctional customer behavior can be driven by cognitive biases such as actor-observer bias, fundamental attribution error, and self-serving bias, which influence how individuals perceive and react to situations. These biases, combined with societal pressures and interactions, can shape customer actions and business responses.
Step-by-step explanation:
Drivers of Dysfunctional Customer Behavior
According to Harris and Reynolds (2009), three main drivers or cognitive biases can lead to dysfunctional customer behavior. These include actor-observer bias, where individuals attribute their actions to situational factors while attributing others' actions to their personality; the fundamental attribution error, which is the tendency to place undue emphasis on internal characteristics of the individual rather than external factors when explaining the behavior of others; and the self-serving bias, where people credit themselves for their successes but attribute failures to external factors.
These biases interact with external influences such as societal norms and values, potentially leading to sanctions or labels when behaviors deviate from expectations. Moreover, when coping strategies become rigid and compulsive as described by Horney, they can contribute to alienating individuals from others, potentially exacerbating dysfunctional behavior.
Understanding the psychological underpinnings of customer behavior, including cognitive dissonance and the influences of conformity, compliance, obedience, and the presence of authority, can help businesses anticipate and manage customer interactions more effectively. Persuasion techniques, along with an understanding of prejudice and discrimination, are also relevant to addressing customer behavior in a business setting.