@SarahGen-- I think one issue is the lack of communication.
I mean, how will a company know what customers think about their product? In order to find out, they have to speak to them, communicate with them. A lot of it is done by requesting customers to leave feedback after their purchase. There are also research organizations that can do polls and other types of questionnaires to ask people about their preferences for a product. A good customer service also ensures that customers can voice their opinions, likes and dislikes easily and quickly to the company.
If a company is not managing customer expectations well, it is obviously not doing these well enough. It has to find new and better ways to communicate with customers and potential customers.