Take a product like a low-cost pressure cooker [priced at Rs. 1800.00 for a 3 Litre, Rs. 2400.00 for a 5 Litre, Rs. 3200.00 for a 6.5 Litre pressure cooker] which is targeted to the lower income group whose annual income is in the range of Rs. 1.2 to 1.8 lakhs per annum [Rs. 10,000 – Rs. 15,000 per month]. Using the principle of JND suggest a discount for families earning 10,000 per month and families earning Rs. 15000.00, that would make them get up and notice the discount & propel them to buy the pressure cooker. Please justify the discount for the same.

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