September 5, 2024
USA Today recently published an article featuring Nailya Ordabayeva, Kelli Questrom Associate Professor in Marketing, discussing the prevalent strategy of shrinkflation.
Shrinkflation refers to the practice of reducing product sizes while keeping prices the same, allowing companies to sidestep direct price increases that might drive customers away. Conversely, upsizing, where products are increased in size without a price change, is rarer because of prevailing high inflation.
“People ultimately pay the most attention to the final price. Downsizing is actually less upsetting at face value,” Ordabayeva adds.
While shrinkflation might seem deceptive, food companies deal with rising operational costs, contributing to the practice.
