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Consumers will take price hikes, or shrinkflation, before lower quality, new research finds

It leaves the quantity and price alone while downgrading what is inside.

A person carrying a shopping basket in a grocery store.

Photo Credit: iStock

Paying more at the checkout line is never fun. Opening a package and realizing it has gotten smaller is not much better.

But new research suggests shoppers may find something else even more frustrating: when a product stays the same price and size while the quality quietly gets worse.

What's happening?

When costs go up, companies generally have a few ways to respond. A recent paper in the Journal of Consumer Research examined three options: charging more, making the package smaller, or lowering quality while keeping both the price and size the same.

The findings also sparked discussion in the r/Anticonsumption subreddit, where the original poster wrote, "New academic research shows consumers particularly dislike decreases in product quality."

That last option is often called skimpflation. Instead of giving buyers less product, it leaves the quantity and price alone while downgrading what is inside, such as through ingredient swaps, formula changes, or other less noticeable reductions.

Results from multiple preregistered experiments showed a clear pattern: people rated quality reductions as less fair than either price increases or shrinkflation, and they were less interested in buying products after quality had been cut.

One commenter wrote, "...studies like this are necessary because then you can point to concrete data rather than anecdote."

Why does it matter?

Skimpflation can be one of the most frustrating forms of inflation because it is often harder to detect before money is spent. A smaller package is visible. A higher price is visible. A worse formula often is not.

That is especially true for everyday purchases such as food, toiletries, and clothing, particularly for shoppers trying to stretch already tight budgets.

According to the paper, quality cuts can feel especially unfair in part because they are harder to spot and because they change the item itself. Consumers are not only paying the same money for diminished value; they may feel they can no longer get the same experience they set out to buy.

As one commenter put it, "For me, a change in the quality or composition of a product means that it's essentially a different product." The same commenter added, "My preference is a price increase if necessary."

What can I do?

The researchers also found that consumers reacted far less negatively when companies were direct about changes in product quality.

Clear communication gives shoppers a fairer chance to decide whether a product is still worth the price.

Looking only at price per ounce may miss the bigger issue if the product itself has gotten worse.

If a brand has clearly cut corners, switching to a competitor or store brand may help protect both quality and budget. Product reviews, customer service complaints, and purchase decisions can all send signals that companies can measure.

Beyond individual shopping choices, the paper pointed to a policy question: consumer-protection efforts may need to focus more on hidden quality reductions, not just on higher prices or smaller packages.

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