Shrinkflation: A Consumer Perspective

Abstract

Shrinkflation is the process of reducing a product's size, quantity, or quality while maintaining its price, which can result in customers' trust. It has become a phenomenon in modern markets, particularly during periods of inflation and rising production costs. This practice creates contrasting dynamics between producers and consumers. From the producer's perspective, shrinkflation is a strategic response to cost pressures, competitive market conditions, and the need to protect profit margins without affecting consumer purchasing through price increases. Conversely, consumers may perceive shrinkflation as a form of hidden price increases that diminish product value and raise concerns about fairness and transparency. This study explores the phenomenon of shrinkflation from a consumer perspective. The methods used include analysis, synthesis, and generalization of related literature. The results show that consumer perception of shrinkflation is shaped by issues of transparency, fairness, awareness, and trust, and they perceive shrinkflation as a deceptive practice that erodes trust and leads to loss or deception, affecting brand loyalty and purchasing behavior.