Modeling of Consumer Behavior: Consumer Expectancy Theory for Retail

Consumers were, are and going to be the milestone for business and especially for trade. There are a lot of different theories described in the scientific literature and practical cases about consumer behavior. On the basis of well known expectancy theory authors have developed consumer expectancy theory and a mathematical model of consumer expectancy that can be used for evaluation of investments of a company. The theoretical and methodological background is formed on basis of scientific researches and publications, statistical information from legal institutions as well as information collected by authors during the survey. Authors conclude that consumer expectancy theory could help companies, especially SMEs, to perform better in the market. By using elaborated mathematical model, companies may analyze their return on investments and plan further activities oriented on communication with customers.