Just-noticeable Difference - Marketing Applications of The J.n.d

Marketing Applications of The J.n.d

Weber’s law has important applications in marketing. Manufacturers and marketers endeavor to determine the relevant j.n.d for their products for two very different reasons:

1. so that negative changes (e.g. reductions in product size or quality, or increase in product price) are not discernible to the public (i.e. remain below j.n.d.) and
2. so that product improvements (e.g. improved or updated packaging, larger size or lower price) are very apparent to consumers without being wastefully extravagant (i.e. they are at or just above the j.n.d).

When it comes to product improvements, marketers very much want to meet or exceed the consumer’s differential threshold; that is, they want consumers to readily perceive any improvements made in the original products. Marketers use the j.n.d to determine the amount of improvement they should make in their products. Less than the j.n.d is wasted effort because the improvement will not be perceived; more than the j.n.d is again wasteful because it reduces the level of repeat sales. On the other hand, when it comes to price increases, less than the j.n.d is desirable because consumers are unlikely to notice it.