” Why Shrinkflation Works, Until We Notice. “
The psychology behind why we spot price rises but miss product downsizing.
Key points
We watch price changes closely but rarely notice size changes, which is why brands shrink products instead.
Below a certain threshold, a change in package size is not overlooked so much as undetectable.
When we do spot a size cut, we judge it more harshly than a price rise costing us exactly the same.
As shoppers in a cost-of-living crisis, we have become rather sensitive to when something suddenly costs more. Whether on the shelves of a grocery store or the final total at the checkout, we are quick to spot the price change from last week and complain to whoever is nearest.
We are far worse at noticing when we get less for our money. Like when there is quietly less inside the box, packet, or wrapper than there used to be. Both impact our finances, but only one is instantly noticeable.
It’s what’s on the inside that counts
When a brand is under cost pressure, it has two ways to pass that financial burden on to the consumer. It can raise the prices of its products, which almost everybody notices. Or it can quietly reduce the size and leave the price alone, which almost nobody does.
Many brands prefer the second option given how the change is often overlooked, thereby protecting customer loyalty during times of financial difficulties. This is called shrinkflation.
More Information at:
https://www.psychologytoday.com/nz/blog/shopping-and-the-mind/202608/why-shrinkflation-works-until-we-notice
