Which of the Following Is True of JND

question 115

Multiple Choice

Which of the following is true of JND?

• A) Decreasing prices below consumers' JND is likely to cause a significant rise in sales.
• B) Making product improvements that far exceed consumers' JND is likely to maximize company revenues.
• C) There is no JND for decreased product volume sold in existing packaging.
• D) Making drastic changes to a company's logo to an extent well beyond consumers' JND allows companies to update their image without losing their ready recognition.
• E) Increasing prices below consumers' JND is likely to go unnoticed by consumers.

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Definitions:

Liberalization

The process of eliminating restrictions and barriers to free trade or other economic activities, often to encourage economic development.

Delegation of Authority

The process of distributing and entrusting work or decision-making power from a higher authority to lower levels within an organization or system.