I am new to liferay. I want to personalize the web content based on the user profile and also I want to specify personalization rules which decides his content. Based on the user action I want to specify the contents for the next page he is navigating. As the Liferay doc says it supports personalization. How can I configure such personalization rules and do I need extra plugins for that?
liferay personalization rules
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Liferay defines personalization differently than you do. The use case Liferay has implemented for Personalization is geared more towards display 'content A' if the user has been to the site 'n' number of times. The wiki entries I've seen are more geared toward "Customization" (moving portlets around in a defined area of the screen) moreso than "Personalization" (delivering content to a user and allowing them to take action based on some set of profile attributes).
I have built full blown personalization engine into Liferay and it's a significant effort. Creating personalization would typically involve a lot more than a Liferay plugin, but I suppose it is doable. If you're interested in learning how you can achieve your use case, then you can check out my Personalization webinar on the Xtivia site where I talk about how to achieve exactly what you're looking for.
http://www.xtivia.com/liferay-personalization-using-user-collections
HTH
A combination of layout template tweaking and/or logic in portlets are the most used approaches - can be combined.