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Question

What pricing model is being used with shrinkflation?

Answer

Cost-oriented pricing model

Shrinkflation is a pricing strategy where the same price is charged for a smaller product. This practice is often used by companies to maintain or increase profit margins without increasing prices. In terms of pricing models, cost-oriented pricing is typically used for shrinkflation as companies reduce the size of the product to cut costs and maintain profitability while keeping prices the same.