Gap Fill - Shrinkflation - Level 6


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   illusion      phenomenon      process      products      purchase      quality      range      raw      strategy      tactic  
A new is taking hold across the world - "shrinkflation". This is when companies reduce the size of their products or of services while maintaining prices. It is in reaction to the rising prices of materials needed in the production . Another being used is to place smaller numbers of items in larger boxes, providing an to shoppers that they are getting more for their money. Shrinking the size of is in effect a cost-cutting . Manufacturers are relying on psychology here. They know that consumers are more sensitive to price than quantity or . Most shoppers will still make a regular , even if it has shrunk, as long as the price has not risen.

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