What are Behavior-Based Products?

There are products and services that are more in-demand than others. You can observe that when shopping, some consumers prefer particular products and services. But, “How do various brands guess what consumers like?”

Salesperson offering behavior-based product

What people don’t know is that brands look into their buying patterns to satisfy their present and future needs. These products are called behavior-based products, which are designed according to consumer behaviors.

Behavior-based Products: Explained

As its name suggests, behavior-based products are products produced depending on the behavior exhibited by consumers. These include usage and purchasing behavior, benefits sought, and customer loyalty.

When you try to understand how your customers use or purchase products or services, you’ll know which product works for them most. It is also essential to know the time when most consumers purchase or use a particular product. Take for example a ride-sharing company.

According to a study from ScienceDirect, people avail ride-sharing services more during Mondays than other weekdays. To increase usage on other days, the company can persuade its customers by providing discounts and other valuable offerings applicable during these days.

Knowing the benefits that consumers usually seek in a product is also a good way to understand your customers. Meanwhile, marketers usually develop a rewards program to return the loyalty of their customers, which you should also monitor when designing behavior-based products.

Brands observe and gather data on consumer behavior to probe into their audience and design products and services that would be more enticing. Companies that use consumer data surpass their competitors because it allows these companies to target potential customers in a laser-like manner.

Behavioral-based Products and Behavioral Product Management

Behavioral product management involves consumer psychology and behavioral science to design products. For example, since people sometimes make unreasonable decisions, consumer psychology is used to develop products around those irrationalities.

Consumer psychology studies consumers’ beliefs, thoughts, perceptions, and feelings that lead them to make a purchase. To put it simply, behavioral-based products are designed according to customers’ hopes, desires, needs, frustrations, and fears.

Behavioral Product Management: How Does It Work?

Like behavior product management, P&C insurance software allows your company to produce behavior-based products by customizing the property and casualty (P&C) insurance offering to every potential customer.

Nowadays, behavioral product management no longer relies on customer feedback alone, as its conclusions are inaccurate. Brands are now developing their products based on a more proactive approach, understanding human psychology. It is to change and guide their customer behaviors.

For this reason, behavioral product managers can develop products that truly resonate with people. Since their approach involves behavioral science and product management skills, they can provide satisfying products or services.

Psychological pricing is among the best examples of product management. When two similar products are displayed side by side, consumers often choose the one with the lower price. Consumers who prefer prestige or value over price will choose the more expensive product.


Overall, behavior-based products are developed to provide what customers want. Behavioral product managers study what motivates consumer behavior to develop a pattern to help solve problems and improve their products. Behavior-based products let consumers get their expected results from a product.


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