Glossary
Opinions
Articles
Beginners Course
Lecture Modules - PDS
Exams
New Highs
Winning Shares
Lecture Modules - Resellers
About - Background Approach
Privacy Policy
Daily Quiz
Software Download Steps
Logout
Dashboard
Log out
Reducing the size of products while leaving the price unchanged. This process is usually found in the food and beverage sectors. When the manufacturer of a food product is faced with rising input prices and cannot easily pass them on to consumers, they also have the option of producing a slightly smaller package for the same price. Consumers typically concentrate on the price of products rather than their exact t size. If the size is reduced by 10% and offered at the same price very few consumers will notice, but this may allow the manufacturer to increase their margin. In effect the price has gone up without causing consumer resistance. So shrinkflation is a type of inflation.