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Threshold Impact
Demand change that occurs once a price or media level crosses a point.
Definition
Threshold impact is a non-linear response where results jump after crossing a specific level.
How to Calculate
Test multiple levels and observe step-changes in outcomes.
Why it Matters
Helps pick price points and media weights.
Key Advantages
Prevents waste below thresholds.
Example
Display lift jumps only when price drops below $3.00.
Use it to
Quantify the volume change that occurs when a price or feature crosses a known behavioral cutoff. Use threshold impact to set price points or feature timing that trigger the desired response.
