Consumer behavior is no completely predictable. But, despite the unpredictability in consumer behavior, the basics of his buying decisions remain the same. And the fundamentals of business are about delivering value to consumers.

Consumers do not buy products – they buy value. It is the value that a product delivers that is being sought after and bought, and when there is not much value, the consumer compares the price that he pays whatever value that he derives. In good times, brands were relatively easier to build, as the consumer didn’t bother much about shelling out that extra penny, if the brand had successfully created a brand image that altered consumer perception. However, when the going gets tough, as in the case of this economic recession, when disposable income becomes more precious than ever before and when purchasing power dives down the cliff, the consumer expects more value for the same penny he spends.

This wouldn’t be much of a problem when it comes to those organisations that actually deliver value – such as health products or consumer necessities and staples. Even these brands had to underline the value that was packed into their products, to make the customer feel that they get more than what they pay for. However, not every product would be able to justify value for money so easily.

The packaged water business, for example, was hit rather hard this recession in the UK, as people started questioning the rationale behind spending on water that was as well available on tap. In Britain, where the quality of normal tap water is reasonable, bottled water manufacturers were hard pressed to present a convincing argument in favour of their product, which would make consumers see real value in what they bought. To add to that was the issue of a whole lot of plastic going into the distribution of a product that was naturally available on tap, and there wasn’t much that the water boys could offer.

Value creation and value addition are essential aspects in business – when there isn’t much real value but only imagined or projected value in products, tough times will be tougher for businesses.