Impact of Consumer Behavior on a Company’s Brand

Companies’ brands are one of the most valuable assets they hold. A brand is essentially a promise made to consumers that they can expect a certain type of product with certain qualities. For this reason, it’s important to understand how consumer actions impact brands and what companies can do to manage the risk. In this post, we will detail some general points about branding from which you should be able to determine how changes in consumer behavior impact your company’s brand. The concept of consumer behavior and the four Ps of marketing are two important variables to consider when thinking about a brand.

Consumer behavior, or how people think and act as consumers, is an important branding variable. People decide what products to buy based on their behaviors and attitudes toward the product or brand. Here are ways in which consumer actions impact a brand.

  1. Understanding diversified preference

Consumer actions enable a company to understand what products a consumer prefers. For example, a consumer that loves leather will buy more topportal leather products after discovering their preferred choice. Consumer preferences are a powerful variable in branding itself and can significantly impact how the company’s brand is perceived.

  1. Understanding their social life and networks

Consumer actions are influenced by the social lives and networks of customers. This can be verified through surveys and surveillance methods like market researchers’ covert methods.

  1. Deciding on the elements of the brand

Understanding how consumers behave allows the company to decide what to put in their branding and marketing campaigns. For example, if it is known that customers prefer a certain type of packaging over another, then the company will invest more into that particular design for their products.

  1. Understanding product pricing

Another important way in which consumer actions impact a brand is through pricing. A company can decide on the optimal price point for its products. For example, if you are selling an item that is very expensive in comparison to others, then a higher price may attract more consumers.

  1. Understanding marketing strategies and campaigns

How a company advertises its product can significantly affect how the brand is perceived. One of the most prominent advertising methods involves “brand extensions,” Alderson (2004) described branding extensions or product extensions. Brand extensions allow the company to advertise its brand through a specific type of product, such as promoting a soft drink through the use of other products like clothing or toys. The company can decide its strategy based on consumer actions.

  1. Understanding competitors

How a consumer behaves concerning competitors is also important when thinking about consumer behavior and branding. In relation to market competition, if consumers prefer a certain competitor over another, it may impact how customers view the brand.

  1. Understanding customer loyalty

If customers are loyal to the brand, this can positively impact the brand and sales. However, if loyalty is low, it would be advisable for the company to research why customers are not loyal. This will help the company understand how to change its marketing and branding strategies to attract more people who may become loyal customers.

  1. The Target market

The target market is another important aspect of branding, closely related to consumer behavior. A company can decide on the particular market that they wish to reach. Such a decision may be based on market research and customer behavior. For example, if the target customers of a brand are mainly males, then that company may focus more on advertising in magazines or TV shows targeted at men. 


In conclusion, the concept of consumer behavior is very important to brand management. A brand can be damaged by a low level of customer loyalty or when customers prefer a competitor’s product over the company’s. Understanding the variables that impact a brand will allow you to make better decisions about the marketing and branding campaigns undertaken.


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