JOURNAL ARTICLE

Frontiers: Shrinkflation Aversion: When and Why Product Size Decreases Are Seen as More Unfair than Equivalent Price Increases.

  • Published In: Marketing Science (INFORMS), 2024, v. 43, n. 2. P. 280 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Evangelidis, Ioannis 3 of 3

Abstract

This article investigates consumers' fairness perceptions of product downsizing—commonly known as "shrinkflation"—compared with equivalent price increases that maintain the same unit price. Across five preregistered experiments, the research finds that consumers judge product downsizing as more unfair than equivalent price increases, a phenomenon termed "shrinkflation aversion," primarily because downsizing is perceived as a deceptive practice due to its lower transparency. This aversion diminishes when firms explicitly communicate product size reductions, increasing transparency, and is moderated by whether firms face increased costs. The findings suggest important implications for fairness theories, firms’ pricing strategies, and consumer protection policies, highlighting the need for transparency and potential regulatory oversight of downsizing practices.

Additional Information

  • Source:Marketing Science (INFORMS). 2024/03, Vol. 43, Issue 2, p280
  • Document Type:Article
  • Subject Area:Political Science
  • Publication Date:2024
  • ISSN:0732-2399
  • DOI:10.1287/mksc.2023.0269
  • Accession Number:176098479
  • Copyright Statement:Copyright of Marketing Science (INFORMS) is the property of INFORMS: Institute for Operations Research & the Management Sciences and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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