Consumer Behavior Jnd

1075 words 5 pages
)For each of these products – chocolate bars and bottles of expensive perfume – describe how marketers can apply their knowledge of the differential threshold to packaging, pricing, and promotional claims during periods of (a) rising ingredient and materials costs and (b) increasing competition.

Differential threshold (aka just noticeable difference “J.N.D.”) is the minimal difference that can be detected between two stimuli.

(a) During times when there is an increase in ingredients and/or material costs, marketers will make small changes to the product. Changes made under the differential threshold are usually not noticeable by consumers.

In the case for expensive perfumes and chocolate bars, marketers can manipulate the
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However, regular wine drinkers can often tell the quality just by the aroma and taste of the sip of the wine.

b. Extrinsic cues consumers will use in determine the quality of a restaurant can be the image of the restaurant, popularity, peer’s opinions, location, and in some cases the price of its dishes.
Often times, people assume that the more expensive sushi, the higher quality it must be. Other times, a restaurant with mediocre food, may be considered of a higher quality because many of its patrons may be celebrities, and also it must carry an expensive menu.
Intrinsic cues in this case would be the food itself and restaurant aesthetics. A restaurant that is furnished in a very modern style may be considered of a higher quality as supposed to a restaurant with plain looking furniture. A restaurant that smells like grease when you walk in would be considered of lower quality than a restaurant that smells like flowers, or a more light feeling aroma.

c. Extrinsic cues for Plasma TV monitors are actually much stronger than its intrinsic cues. Even though the technology behind a plasma TV is very similar between brands, consumers will assume a monitor from Samsung is much better than a monitor from Zenith because of the brand image Samsung carries with its products. Also, price is also an important cue when it comes to plasma TVs. Because of its technology, people often think it should be priced at a high