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 the authors have developed consumer expectancy theory what is a novelty in this field. In the article the authors newly developed consumer expectancy model as well as show it practical application by example of Latvian company “Stendera ziepju fabrika Ltd.” The authors approve this theory with research done in October - December 2009. The author employs well-established quantitative and qualitative methods of research: grouping, analysis, statistic method, etc. The theoretical and methodological scientific researches and publications, statistical information from legal institutions as well as information collected by the authors during the survey. The authors conclude that Consumer expectancy theory could help companies, especially SMEs, to perform better in the market.