Case One: Packaging and the JND - Case Two: Perception and Product Placements
Case One : Packaging and the J.N.D.
“Weber’s law has important applications in marketing. Manufacturers and marketers endeavor to determine the relevant JND 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 JND) 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 JND).
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 JND to determine the amount of improvement they should make in their products. Less than the JND is wasted effort because the improvement will not be perceived; more than the JND is again wasteful because it reduces the level of repeat sales. On the other hand, when it comes to price increases, less than the JND is desirable because consumers are unlikely to notice it.”
- Coca Cola introduced a new sweeter formula for its cola soft drink, and it replaced the original formula in April 1985. It had spent four years testing the new recipe and conducting taste tests with more than 190.000 people. Coca Cola found people chose the new formula 55 percent of the time, and the original one 45 percent of the time. But they failed to understand the emotional significance to people that messing with Coke would have. Many protest groups were formed. People started hoarding containers of the classical formula, formed groups like the Old Cola Drinkers of America, and even boycotted the company in protest. Ten weeks after introducing the new Coke company executives brought the old formula back and they added a “Classical” phrase underneath the script Coca Cola lettering to
“Weber’s law has important applications in marketing. Manufacturers and marketers endeavor to determine the relevant JND 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 JND) 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 JND).
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 JND to determine the amount of improvement they should make in their products. Less than the JND is wasted effort because the improvement will not be perceived; more than the JND is again wasteful because it reduces the level of repeat sales. On the other hand, when it comes to price increases, less than the JND is desirable because consumers are unlikely to notice it.”
- Coca Cola introduced a new sweeter formula for its cola soft drink, and it replaced the original formula in April 1985. It had spent four years testing the new recipe and conducting taste tests with more than 190.000 people. Coca Cola found people chose the new formula 55 percent of the time, and the original one 45 percent of the time. But they failed to understand the emotional significance to people that messing with Coke would have. Many protest groups were formed. People started hoarding containers of the classical formula, formed groups like the Old Cola Drinkers of America, and even boycotted the company in protest. Ten weeks after introducing the new Coke company executives brought the old formula back and they added a “Classical” phrase underneath the script Coca Cola lettering to