(Un)fairness of Shrinkflation: the Role of Consumer-, Firm-, and Marketrelated Factors

Abstract

The paper addresses the problem of package downsizing, or shrinkflation. While the problem is undoubtedly significant as it directly relates to both firms' and consumers' wellbeing, it received only limited attention of researchers. The purpose of the paper is to incorporate package downsizing tactic to the broader area of fairness studies and, thus, respond to the plea to take into account moral considerations of marketplace activities. In a series of scenario-based experiments the author tests how consumer skepticism, competitors' behavior and stated firm intent affect the perceived (un)fairness of package downsizing. Moreover, previous findings regarding the consequences of perceived unfairness are supported with application to package downsizing.