Commentary: Shoppers don't mind shrinkflation if they think there's a discount

SYDNEY: Have you noticed that your favourite chocolate is a little smaller, there are fewer biscuits in the same-sized package or that your bags of chips contain more air?What marketers call a “contents reduction strategy” is more popularly known as “shrinkflation”It’s a comparatively recent phenomenon in the supermarket business, reflecting the pressure on manufacturers to keep prices down. In fact, the word “shrinkflation” entered the lexicon only in 2009.

We simulated this in real-world conditions by manipulating shoppers’ perceptions of products for sale in a supermarket in Brisbane and then measured the differences in sales.coconut rolls, confectionery, biscuits, soy milk and coconut water. Tactic 1 created the impression that only the price had increased. Tactic 2 created the impression that the price was the same but the size had been reduced .

With tactic 4 530 units were sold. This compares with 448 sales with tactic 3, 435 sales for tactic 2 and 391 sales for tactic 1.These results demonstrate the commercial power of psychological framing.a mixed outcome consisting of a small gain and a larger loss is more favourable than a net outcome consisting of just a smaller loss alone.

In most developed countries, consumer protection laws require retailers to display unit prices to enable shoppers to cut through the proliferation of marketing signals designed to attract attention.ere’s no obligation to show the “before” unit price, so it’s difficult to gauge unit price changes.

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