What is the relationship between price and consumer behavior?

What is the relationship between price and consumer behavior?
Consumers play an important role in determining the demand for a firm'sproducts. They are quality conscious and price sensitive. The success of a product is dependent on the consumers' acceptance of the product.Price sensitive customers like to buy products in small quantities ataffordable prices. For example, Motorola had initially launched sevenmodels of cellular phones at high prices but none of them weresuccessful. On the other hand, Nokia launched a simple cellphone at anaffordable price, which captured the market. Therefore, firms must tryto offer products that are of high quality, at affordable prices. Consumerbehavior is an important determinant of the type of product a firmshould produce. Before launching a product a firm has to take intoconsideration its target customers tastes and preferences. For example,when Dabur Foods launched Real orange juice, consumers rejected itbecause it tasted bitter. Research revealed that Indian consumerswanted juices to be sweeter. Dabur then modified Real's taste bysweetening the orange juice.

Consumer behavior assumes that every individual tries to maximize hissatisfaction by consuming products and service with the limited incomeavailable to him at a particular time. This limited income can also bereferred to as the budget constraint.