Differential Threshold

The differential threshold, also known as the just noticeable

difference (jnd), is the minimum difference in stimulation that
a person can detect at a given period of time.

Ex: If I asked you to put your hand out and in it I placed a

pile of sand. Then, I add tiny amounts of sand to your hand
again and ask you to tell me when you notice any change in
the overall weight. As soon as you can detect any change in
the weight, that difference between the weight of the sand
before I added that last bit of sand and the amount of sand
after I added it, is the difference threshold.
• For example if the price of freshly squeezed
orange juice is Rs 80, most consumers will
probably not notice an increase of Rs2 and it
may take an increase of Rs 15 or more before
a differential in prize would be noticed.
• The concept of differential threshold is applied to almost all aspects of marketing
strategies.

• 1.PRODUCTLINE EXTENSION.
This concept is applied to the advertising/ promotion of
the productline, in order to exploit the strength of the original brand.
• You should be able to differentiate between advertisements for Surf excel gentle
wash & Surf excel matic, Surf Excel easy wash, Surf Excel Liquid Wash.

• 2.DISTRIBUTION CHANNELS
The marketers' apply the concept of differential threshold
in the selection of the distribution channels, for the various
products from the same family product group.

• 3.PRODUCT PRICING
The marketers' apply the concept of differential threshold
in the PRICING of the two brands from the same company
--like two toothpaste brands from one company.
• 4.PRODUCT PROMOTIONS
The marketers' apply the concept of differential threshold in the
DEVELOPMENT/ IMPLEMENTATION of the sales promotion
programs in two channels to maintain similarity / cost down.

• 5. PRODUCT PACKAGING
The marketers' apply the concept of differential threshold
in the PACKAGING of the various models of the company
products / to create uniform image.

• 6. PRODUCT PERCEPTION/ IMAGE

The marketers' apply the concept of differential threshold
in the PRODUCT POSITIONING in more than one
market segments.
 Absolute Threshold

• The lowest level at which an individual can experience a

sensation is called the “ABSOLUTE THRESHOLD”. The
point at which the person detect the difference between
“something and nothing "is that person’s absolute threshold
for that stimulus.

• The distance at which a driver can note a specific billboard

on a highway is that person’s absolute threshold.

• Two people riding together may first spot the billboard at

different times (i.e. at different distances ) thus they appear
to have different absolute threshold.
• Under conditions of constant stimulation , such as
driving through a “corridor” of billboards ,the
absolute threshold increases( i.e. the senses tend
to become increasingly doubled). After an hour of
driving through billboards , it is doubtful that any
one billboard will make an impression.

• Hence ,we often speak of getting used to hot bath,

a cold shower or a bright sun. As our exposure to
the stimulus increases, we notice it less.
 THE DIFFERENTIAL THRESHOLD
• The minimal difference that can detected between the
two similar stimuli is called the “differential threshold”
or the “just noticeable difference.” (the j.n.d).

• The stronger the initial stimulus , the greater the

additional intensity needed for second stimulus to be
perceived as different.

• For example if the price of freshly squeezed orange juice

is Rs 80, most consumers will probably not notice an
increase of Rs2 and it may take an increase of Rs 15 or
more before a differential in prize would be noticed.
 MARKETING APPLICATIONS OF THE J.N.D

• Weber’s law has important applications the marketing for

two very different reasons :
• The negative changes (e.g., reduction in product size or
quality or increase in product price ) are not readily
discernible to the public (i.e. ,remain below the j.n.d.)
• So that the 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 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 product.
 MARKETING APPLICATIONS OF THE J.N.D

• 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 b
perceived ; moe than the j.n.d. Is wasteful as it
reduces the level of repeat sales .

• On the other hand when it comes to price

increase ,less than the j.n.d. is desirable because
consumers are unlikely to notice it .