Puny chocolate bars and miniature crisps: Is ‘shrinkflation’ the worst business practice ever?

Next time you pick up a package of coffee or a pack of toilet paper, take a closer look. You might notice the package looks familiar, but what is inside has subtly diminished. This is “shrinkflation” in action, a pricing strategy used by manufacturers worldwide. By reducing product size instead of increasing final prices, companies take advantage of the psychology of shoppers who are more likely to notice a price hike than a slight reduction in size. Next time you pick up a package of coffee or a pack of toilet paper, take a closer look. You might notice the package looks familiar, but what is inside has subtly diminished. This is “shrinkflation” in action, a pricing strategy used by manufacturers worldwide. By reducing product size instead of increasing final prices, companies take advantage of the psychology of shoppers who are more likely to notice a price hike than a slight reduction in size. Economics & Business Phys.org – latest science and technology news stories