JND in Healthcare Organizations

Successful healthcare organizations adopt innovative practices of modern-day businesses. Just Noticeable Difference (JND) refers to the minimal stimulation that a consumer can sense between two products. That smallest distinction in the stimuli that two products raise best explains JND. Healthcare organizations need to identify the JND of their products/services to ensure that the adverse changes in their products/services are not noticeable among consumers. The knowledge of JND of products is also essential in ensuring that the positive additions made on the products are visible and obvious to the customer. Customers view sudden change as a threat to their psychological comfort about a given product or service. Health product marketers have to introduce a change in a gradual manner in order to retain the confidence of the clients in the products.

Gradual change

When healthcare organizations intend to implement change in their products or services, the organizations need to make this change gradual for clients to accept the change. Marketers should be keen on JND issues especially when it comes to changing brands or logos of products. This change needs to be gradual so that the customers find themselves already part of the change rather than feel a sense of shock because of a change. For example, the case of Sony Entertainment’s acquisition of SAB is a perfect application of JND in marketing. Introduction of changes in the logo of SAB was gradual, and this had a significant influence in retention of customers or viewers.

Pricing policies

Marketers can use JND in order to make critical pricing decisions for their products. Pricing decisions usually result from keen analysis of healthcare costs and their associated profit margins. However, research shows that the human mind may not recognize an up to 10% variation of price whether an increase or a fall. This lack of recognition is irrespective of the type of product/service in consideration. Health organizations need to make pricing decisions based on a 10% margin. For example, in order for an organization to raise its prices, it is advisable for the new price to be less than 10% higher in order to retain its customers. If an organization intends to offer discount on its products, the pricing decision should involve a reduction of the price by more than 10% in order for the offer to be apparent and appealing to more clients.

Maximization of earnings

Healthcare organizations can secure their earnings by proper application of JND. The organizations can reduce their product size slightly so that consumers may not recognize the difference. The organizations tend to use this technique of maximizing earnings if the organization fears to increase its prices for the commodities. The reduction of the size of the commodity just below the JND enables the organization to cover for high cost of raw materials and increase earnings. This type of strategy best applies to companies that make confectionaries. These companies modify the size of their products in a way that the consumers cannot tell any changes. Other products undergo variations in terms of composition depending on the cyclical availability of certain raw materials.

Eye-catching changes

However, in situations where marketers introduce a positive attribute in a product, they need to ensure that the attribute stands out. The achievement of this strategy is through making the change significant than the threshold in indifference. For instance, when a pharmaceutical company introduces a flavor or a chemical agent, the company should ensure the flavor/agent is noticeable in the products so that the clients can see a sense of value addition. The companies may also change the packaging of their products in order to catch the eye of the client. These conspicuous changes in the product characteristics easily affect consumer perceptions and change their attitudes towards the products. Other characteristics such as the fragrance and pricing can also help in the making of a product stand out against those of competitors. In situations of too many brands for a given product, marketing needs to focus on the visual and appealing features of the products by making them surpass the threshold significantly. When an organization spices up these modifications with a vigorous and impactful promotion that puts the focus on the positive modifications, there is a high chance of success in the industry.

Advantageous growth

Application of JND is helpful to brands with weak identities, which raise confusion in the distinction with other products. Such brands can sell by imitating established brands in the market. This application of JND in order to make weak brands similar to reputable brands makes it a good marketing strategy for organizations of the weaker brands. The organizations of weaker brands can gain a significant market share and sell more as they capitalize on the indifference they create in the market.