What is the difference between absolute differential threshold?

ABSOLUTE THRESHOLD

The smallest intensity of a stimulus that can reliably evoke a sensation.

EXAMPLE

THE IMPACT OF UPWARD PRICE MOVEMENTS ON DAILY

HOUSEHOLD GOODS.

THIS SHOWS THE IMPORTANCE OF MARKET SEGMENTATION

AND THE ASSOCIATED PRICING POLICIES.

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DIFFERENTIAL THRESHOLD.

Difference Threshold: The difference threshold, also known as the just noticeable difference (jnd), is the minimum difference in stimulation that a person can detect 50 percent of the time. We experience the difference threshold as a just noticeable difference. For example, let's say 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 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.

How do marketers apply the concept of differential threshold or 'just noticeable difference' in their marketing strategy? Explain giving suitable examples.

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.

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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 productgroup.

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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.

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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.

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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.

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6. PRODUCT PERCEPTION/ IMAGE

The marketers' apply the concept of differential threshold

in the PRODUCT POSITIONING in more than one

market segments.

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