JND

Just Noticeable Difference is the minimal apparent

difference between two products as observed by
the consumer. Otherwise we can say -"The just
noticeable difference (JND) is the smallest
difference in intensity between two stimuli that a
person can detect."
Psychological concept applied to consumers'
purchasing patterns that holds that consumers are
more likely to purchase products based on the
perceived differences between products than they
are to purchase based on the attributes of one
product or another. In marketing there are two
valuable concepts to follow. However, they
sometimes use indiscernible stimuli that are just
below a consumer’s threshold so as to influence
him. This is called subliminal message. Of all the
stimuli a consumer comes into contact with, he
pays attention to only a few and interprets the
messages that he remembers.
This is called the process of perception and
has the three steps: 1) exposure, 2) attention,
and 3) interpretation. How well the consumer pays
attention will depend on the stimulus, and also the
consumer’s interest and need for that product. The
consumer interprets the information in two ways:
1) the literal meaning or the semantic meaning
and
2) the psychological meaning. A consumer also
interprets the symbols and other physical features
of the product on the basis of his experience and
cultural beliefs which are important in Indian
market and cannot be ignored.
Marketers make use of perception to
formulate marketing strategies. The
marketers use a perceptual map, wherein
they find out the attributes or the
characteristics that the consumer associates
with the product and they create the product
accordingly. Thus, development of a brand or
the logo of the product, packaging of the
product, etc., have to be made keeping the
consumer’s perception in mind. It is
important to make a just noticeable
difference and to seize opportunities. A ‘just
noticeable difference’ would be a contribution and
‘opportunities’ might be the possible implications.
Perception is the process through which a person
forms an opinion about the various stimuli he
receives from his sensory organs. In marketing,
perception is concerned with understanding how
the consumer views a product or service. The five
senses of a person help him in this process. The
marketer uses various props to stimulate the
consumer, that is, through the use of colors,
sound, touch, taste, or smell, to observe the
product. The marketer must distinguish his
message from the competitor’s message.
This is the concept of Just Noticeable
difference (JND) comes to their aid. It helps
the consumer to distinguish changes in prices
among purchase alternatives. Marketers thus use
stimuli to grab customers’ attention and most often
these efforts are clearly visible and known to the
customer. Indian producers are also using the JND
tool extensively for winning the market
competition. Though the Indian market is the
toughest place to compete because of various
successful brands adapted by different regions of
people of India where the JND technique plays a
great role for existence among others. One of the
basic questions regarding the effect of marketing
stimuli. The ability to discriminate among stimuli is
learned. Generally, frequent users of a product are
better able to notice small difference in product
characteristic between brands. The ability of
consumer to detect the various in sensory
elements is determined by their threshold level.
Some consumers are more sensitive to these
stimuli than others. This will be quite clear from
the fact tea and coffee companies employ persons
called tea or coffee ‘tasters’. Just Noticeable
difference is based on the differential threshold of
a consumer. A consumer will not be able to detect
any change in stimulus below his threshold.
For e.g. If an unbranded detergent cost 5 percent
less that consumer is regular brand, the consumer
ma not notice the difference. However, if the same
unbranded product costs less than 30 percent less
than he is definitely going to notice the difference.
Weber’s Law states that the stronger the
stimulus, the greater the change required for the
stimulus to be seen as different. The most
important application of this law is in price.
One critical implication is that the higher the
original price of an item, the greater the markdown
required to increase sales. For e.g. If price of a
Mercedes Benz S class is reduced by 25000/-, it
will not have any impact on sales because the
basic price is in several Lakhs that a difference of
Rs25000/- may not be noticeable for consumers.
On the other hand a price reduction of even
Rs5000/- for a Maruti 800 is seen to push sales
substantially because of its low original price.
Another example, if the price of a car is increased
by Rs.1000/-/- it would probably not be noticed
i.e., the increment would fall below the J.N.D. it
may take an increase of Rs.5000/-/- or more
before a differential in price would be noticed.
However even an one rupee increase in oil price
would be noticed very quickly because it is a
significant percentage of the initial amount So an
additional level of stimuli equivalent to the J.N.D.
must be added for the majority of people to
perceive a difference between resulting stimulus
and the initial stimulus. Absolute Threshold is
stimulus below which consumers cannot
detect the stimulus at all. It is also referred to
as subliminal perception .i.e. perception of
stimulus below the conscious level. One of the
major controversies regarding consumer
perceptions is whether consumers can actually
perceive marketing stimuli below their absolute
level. The level at which consumer’s no longer
notice a frequently repeated stimulus. An
individual walking into an air-conditioned room,
kitchen full of fragrance, or a noisy party will notice
the stimuli after a period of time.
Consumer differs in their level of adaptation.
Some tune out more quickly then others. Novelty,
humour, contrast, and movement are all stimulus
effects that may gain consumer’s attention and
reduce their attention and reduce their adaptation.
Price perceptions directly influence consumer’s
perceptions of brand quality and determine their
purchasing behaviour. For e.g. Parker pens were
positioned as expensive, hand finished pens. In
order to achieve large volume of growth and to
share a pie of the explosive growing ballpoints,
Parker entered this market for cheap pens moving
away from its traditional positioning. The results
were disastrous because company’s image was not
consistent with its price. In the late eighties, it
moved back to its strength, high priced fountain
pens, with an ad campaign featuring style and
luxury. This shift made the company profitable
again. Raising prices of products and services in a
country like India may result in adverse reactions
from consumers, especially the mass consumers. It
may even alienate consumers from a brand. One
important factor to consider while raising prices is
how much to raise it by. Is it possible to raise
prices to an extent where consumers fail to notice
the price rise ? Yes, it is.
To do that, the price must be raised to just below
the JND, or the Just noticeable difference.
'Price' is a stimulus. If price is raised to an extent
where it is within the differential threshold, then
the 'raise' would not be noticed. Now that is
something HUL (Hindustan Unilever Limited) has
raised the price of its soaps, skin creams and
detergents as costs of raw materials like palm oil,
an ingredient used in the manufacture of soaps,
and linear alkyl benzene, a key input for
detergents, have increased. Hindustan Lever raised
the price for a 1.5-kilogram, or 3.3-pound,
package of its Surf Excel Blue detergent pack to
120 rupees from 117 rupees. The price of a 45-
gram pack of Lux soap was raised to 6 rupees from
5 rupees. A 9-gram pack of Fair & Lovely cream
was raised to 6 rupees from 5 rupees. The
consumer perception has changed but brand
positioning of HUL (Hindustan Unilever Limited) is
excellent which has improved the market share in
India. In Telecom sector of India-“Brand morphism
in telecom is a quick process. An SMS on day one
can change the name in nanoseconds.” Brand buy-
outs are essentially cruel events. A brand is
created from scratch, nurtured with care,
galvanized into activity and made to happen.
Consumers gravitate towards the brand,
involvement deepens, value creation is at work and
the brand buzzes. And then, all of a sudden, in
comes a buyer, buys into its equity and all things
physical, non-physical (and meta-physical alike)
that surround a brand name. And the buyer has a
call to take. Change the name? Or retain it the way
it is? The brand is a name, a slogan, a logo, a
colour, a differentiation and 43 other things
altogether. But is it a name alone? Not really. The
Hutch name, for instance, is not a name alone. It
is much more. It is the collective equity that is
represented by the name, the service, the
dependability, the experience at large, the colour,
the logo, the fonts that speak of Hutch and
everything else that lies in the amorphous space of
other attendant attributes. As
the early statutory issues are cleared, one can
expect intelligence in the transition.
The tool of 'Just noticeable difference (JND)
can be used to advantage. Brand identity changes
can happen for many reasons. In most recent
cases, particularly Axis Bank and Vodafone, the
identity change was all about a need for a new
name to replace the old. In the first case, it was a
statutory imperative and in the second, it was due
to a change of ownership pattern. The key need is,
however, to convey that the change is but a name
change alone. Nothing else has changed. We are
the same. Our reliability continues. The key points
one needs to focus on in such changes are the link
elements in terms of visual, aural and experiential
imagery that the old brand enjoys in the minds and
hearts of consumers. It is important to audit these
points carefully and emerge with bridge elements
that will continue in the new communication
exercise. In such an audit that is consumer-centric,
you could emerge with as many as 1,200-1,600
points that spell the meaning of the old brand to
the consumer. You need to short-list from this by
giving specific weightage to those points that must
remain inalienable from the new identity you are
about to convey
and build. After having gone through this laborious
exercise, brands need to ensure that the old
imagery balances itself with the new. It is
important for the new elements in the brand
communication exercise to have the right
weightage. For instance, the Vodafone logo and its
dominance. Brand-name morphs are sensitive
exercises. One deals with them through a series of
executions. At times one execution is not enough.
For instance, Vodafone will need to have a very
quick second-generation campaign following the
pug in the new kennel. This campaign needs to be
new-identity-specific. ‘Just Noticeable Difference’
format where its presence is slowly phased to a
smaller degree of significance visually. Application
of JND for marketing strategy:
Product Pricing: Producers apply this concept of
differential threshold in pricing of two or more
brands of the same company. For example
different brands of fruit juices of same company
with different price range.
Product Packaging: This concept is applied for
the products for maintaining a uniform or stable
identity of product. So, that consumer can identify
easily about the product and its categories.
Packaging also reflects the name of company. For
example- snacks packaging, different snacks of
same company.
Product Extension: This concept is applicable for
extending the different variety of product under
the same brand name for retaining the market
share effectively
by using the different modes of publicity. The main
idea behind it is to strengthen the core brand of
the product.
Identity Retention: Subpart of advertising
concept applied for a product to be more identified
infront of consumers and the frequent actions and
stable frequency of product picture through
different modes creates a unforgettable object in
consumers mind. Product Comparison: it’s a
subpart of product positioning. Producers apply
this concept of differential threshold comparisons
for proving that there is significant
difference in their products as compared to other
products prevailing in the market. For example in
case of soft drinks marketing in India.
Product Perception: Producers apply this concept
for introducing their same type of products near
different segment of consumers.
Distribution Channels: Producers apply this
concept in distribution of product through different
channels for the same product group. For example
dairy products through different cannels.
Product Promotion: Producers apply this concept
in promoting the sales of
product to maintain the similarity and cost
reduction.
Just noticeable difference
Why is it a 10% off sale fails to get your attention
while a 50% off sale brings in consumers from the
surrounding counties? The explanation can be
found in the concept of just noticeable difference
(JND) (also sometimes called the differential
threshold). The just noticeable difference is the
minimum change necessary for a person to detect
it. This concept is typically applied to the five
senses but it is equally valid when applied to
marketing concepts such as price and quality.

The importance of JND to marketers is the

challenge in determining the amount of change
necessary for it to be noticed by the consumers.
Any change less than the JND is wasted because it
is not perceived. But jus as importantly, any
change significantly larger then the JND can also
be considered wasteful because you end up
spending more than is necessary to elicit the
necessary response (e.g., the customer’s
attention). This also may end up with you irritating
the customer (in the case or increasing volume to
get their attention or visual excitement and color
scheme).

An example of the JND can be seen in the example

at the beginning of this column. The reason the
10% sale does not excite is that it is below the
JND. Research has proven that the JND for price
tends to be between 20 to 25%. Any sale below
that will tend not to get much attention because
the consumer does not believe it makes large
enough difference for him/her to spend the effort
to purchase. However much the 50% off sale price
may attract the consumers, you will end up giving
up money since it was more than enough to get
their attention. In fact, going beyond the JND can
actually hurt you in the long run.

How can this be? Weber’s Law indicates that the

stronger the initial sensation, the greater the
additional intensity that is needed to be perceived
as different. If you turn your stereo system to
nearly a whisper, it does not take much for you to
know when the volume has been turned up.
However, turn it up until the walls start shaking
and it will require considerable increase in volume
for the near-deaf to realize the already loud
volume has become louder. Why then might 50%
actually be detrimental to your business?

A retailer that earns the reputation for constantly

having sales will find they must continually
increase the discount to receive the same attention
as before. The situation is analogous to an addict:
to continue to get high, the addict must continue
to increase the dosage since the body has gotten
used to the previously high level and the addict
must increase the dosage to create a JND and a
new high. If customers start to expect 20 and 25%
sales (or discounted price regularly), this become
the level from which they will gauge actual sales.
You must discount the from the newly established
price point (which was the 20 to 25% off ). So now
you have to discount 20 to 25% off the previous
20 or 25% discount or 35% or more to achieve the
same level of attention as you did before. If you
start from a higher base (say the 50%), and that
base becomes the norm, you will have to discount
from that base to get their attention. During the
last few years, automotive companies have fallen
into this trap: to keep sales going they have had to
increase the level of rebates.

What is the moral of the story? Customers do not

change their intentions unless the promotional
discount is above the JND threshold. This threshold
also differs from brand to brand: the threshold for
name brands is lower than for store brands. Stores
therefore can attract customers by offering a
smaller discount on name brands than they can on
store brands or private brands. A marketer is
therefore wise to reframe from offering discounts
that are below the differential threshold or too
much above. He would also be wise in not being
too predictable in offering the discounts or more
than occasionally as it could affect the baseline
necessary to get the consumer’s difference.