What are behavioral products? – SMALL BUSINESS HUB

It is interesting how people prefer or buy specific products or services over others. It makes consumers wonder how the brands that offer these prod

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It is interesting how people prefer or buy specific products or services over others. It makes consumers wonder how the brands that offer these products guess what they like. Brands produce behavior-based products, designed according to consumer behavior. These products satisfy consumers ‘current and future needs by looking at customers’ consumption patterns.

Salesperson offering behavioral product

Behavior-based products: Explain

As the name implies, behavior-based products are products that are produced according to the displayed behavior of consumers. These behaviors include use and purchase behaviors, benefits sought, and customer loyalty.

For example, a ride-sharing company can persuade its customers to drive more frequently by offering discounts and other valuable offers. Understanding how your customers use or buy products or services will allow you to know which product works best for them.

In addition, it is essential to know when most consumers are buying or using a particular product. The same goes for the benefits that consumers usually look for in a product.

Customer loyalty is another consumer behavior that you need to monitor when designing behavior-based products. For example, marketers usually develop a rewards program to return the loyalty of their customers.

Meanwhile, customer behavior is generally described as the customers’ buying habits. Brands observe and collect data on consumer behavior to examine their audience and design products and services that will be more appealing. Companies that use consumer data outperform their competitors because it enables them to target potential customers in a laser-like way.

Behavioral 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, behavior-based products are designed according to customers’ hopes, desires, needs, frustrations and fears.

Behavioral Product Management: How does it work?

Like behavioral product management, P&C insurance software enables your company to manufacture behavioral products by tailoring the personal and casualty (P&C) insurance offer to each potential customer. Nowadays, behavioral product management no longer relies solely on customer feedback, as its conclusions are inaccurate. Brands are now developing their products based on a more proactive approach, to understand human psychology. It is to change and guide their customer behavior.

For this reason, behavioral product managers can develop products that really appeal to people. Furthermore, since their approach involves behavioral science and product management skills, they can provide satisfactory products or services.

One example of product management is psychological pricing. 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.


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


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