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> If consumers were the rational creatures depicted in classic economic theory, they would notice shrinkflation. They would keep their eyes on the price per Coc

> If consumers were the rational creatures depicted in classic economic theory, they would notice shrinkflation. They would keep their eyes on the price per Cocoa Puff and not fall for gimmicks in how companies package those Cocoa Puffs. It’s not that consumers are not rational. Optimizing around 1 oz change of coco puffs isn’t really a good return on investment for many people. Certainly people with limited budgets or fixed incomes might notice the change and adjust. However if you are running to the store after dropping you kid off at soccer practice and only have 30 min to shop you care more about time than the small amount of money they are “up charging”. Besides, people might be in-elastic with regards to their brands. Certainly I could switch to another cereal but if I want coco puffs I’ll pay the premium because lucky charms won’t substitute.

compsciphd 5y ago
but malt-o-meals bags probably would. (cursory check shows that ~60oz bags at walmart online for approximately ~$6) I stopped buying the best named brands and switched most of my cereal buying to malt o meal brands, didn't really notice a difference.
- wirthjason 5y ago
  That’s exactly the point. Elastic consumers would have likely already switched long before a 1oz change in the box. But if malt o meal went from a 60oz bag to a 55oz one you’d probably still continue buying it rather than switching to something else. It’s OK to be elastic for some purchases and in-elastic for others. Very rarely is price per unit the sole criteria for a consumers choice.
  - Nbox9 5y ago
    There’s more customers to lose on the margin. My grocery budget is $100/week, which I break into two $50 shopping trips. I will swap to cheaper brands than I am accustomed to in order to or remove unnecessary items all together in order to fit my budget.
s_dev 5y ago
>They would keep their eyes on the price per Cocoa Puff and not fall for gimmicks in how companies package those Cocoa Puffs. In the EU there is a problem where even this is subject to shrinkflation. e.g. a jar in Nutella bought in Germany will taste better than a jar of Nutella bought in Poland. Even though the grams of Nutella per Euro is the same. https://www.dw.com/en/is-eastern-european-nutella-worse/a-39748826 https://www.dw.com/en/is-eastern-european-nutella-worse/a-39...
- def_true_false 5y ago
  That's not shrinkflation, as you can still go to Germany and get the real product. It might be false advertising or something. A similar thing happens with 3rd world cars doing worse in crash tests than the equivalent US or European models.

compsciphd 5y ago

but malt-o-meals bags probably would. (cursory check shows that ~60oz bags at walmart online for approximately ~$6) I stopped buying the best named brands and switched most of my cereal buying to malt o meal brands, didn't really notice a difference.

wirthjason 5y ago
That’s exactly the point. Elastic consumers would have likely already switched long before a 1oz change in the box. But if malt o meal went from a 60oz bag to a 55oz one you’d probably still continue buying it rather than switching to something else. It’s OK to be elastic for some purchases and in-elastic for others. Very rarely is price per unit the sole criteria for a consumers choice.
- Nbox9 5y ago
  There’s more customers to lose on the margin. My grocery budget is $100/week, which I break into two $50 shopping trips. I will swap to cheaper brands than I am accustomed to in order to or remove unnecessary items all together in order to fit my budget.

s_dev 5y ago

>They would keep their eyes on the price per Cocoa Puff and not fall for gimmicks in how companies package those Cocoa Puffs. In the EU there is a problem where even this is subject to shrinkflation. e.g. a jar in Nutella bought in Germany will taste better than a jar of Nutella bought in Poland. Even though the grams of Nutella per Euro is the same. https://www.dw.com/en/is-eastern-european-nutella-worse/a-39748826 https://www.dw.com/en/is-eastern-european-nutella-worse/a-39...

def_true_false 5y ago
That's not shrinkflation, as you can still go to Germany and get the real product. It might be false advertising or something. A similar thing happens with 3rd world cars doing worse in crash tests than the equivalent US or European models.