Purdue University just surveyed 1,200 consumers about food and grocery shopping (see full report) and has come up with some interesting insights into shoppers’ attitudes about shrinkflation.
Over 75-percent of the respondents said they noticed food packaging getting smaller. In particular, it was in these categories where they have seen the most changes:
Some other interesting findings from the study include:
— Only 15-percent always check the weight of a product.
— Only 16-percent always check the unit price.
I am surprised that these numbers are even that high.
Shoppers were also asked which they preferred in the context of a snack product — whether manufacturers should just keep the product the same size but raise the price OR shrink the product and keep the price the same.
Lastly, here is how participants feel about a requirement that manufacturers disclose on the package any size changes, whether they switch brands when a product shrinks, and more:
Feel free to share your opinions in the comments.
By the study results, I’m an outlier. Before purchasing any item, I observe the retail price, unit price, and the weight/volume of the packaged product. This behavior is based on the fact that in every financial transaction, we are willingly turning over funds to someone else, whereby knowing what we are getting in return is essential. If in my estimation the exchange is overly-priced, unfair or deceptive, I select a different product or no product. While this level of intellectual effort is expressed in the minority of study participants, I propose that if more consumers chose to express this level of effort, manufacturers might be more mindful when contemplating shrinking their product offerings.
I USED TO BUY house brand, store packaged, egg-rolls from Giant Foods in Maryland. Originally six for $5. Over the last year or so, the price increased by 20% (six for $6). Recently, they have returned the price to $5, BUT, there are 34% fewer egg-rolls in the package (only 4). Doing the math shows an approximate 50% overall price increase. I WON’T buy them anymore. A small but indicative example of what’s going on in the grocery world.
In part, my attitude depends on the nature of the shrink; some bother me more than others. The ones I find particularly offensive are ones that:
a) Change the packaging in order to retain shelf space and the appearance that nothing has changed, or don’t change the packaging at all, rather than overtly reduce the size of the packaging.
b) Deviate from established norms, such as when ice cream “pints” become 14 oz., or yogurts change from 8 oz. to 6 oz. to 5.3 oz to 4.5 oz.
I guess that means that I find most instances offensive. :-/
Dollar Tree (Cypress, Texas) recently reduced their cheapie paper plates package from 40 count to 20 count. Price has not changed at $1.25. I have used these for years but no more. That is a 50% shrink.
I’m surprised that 53% were basically in favor of shrinkflation per that snack food question. Really? That makes no sense, although most people don’t make much sense to me anymore.
I can do math in my head so I make use of that talent in this area. Unfortunately most young people today weren’t even taught how to make change much less can they add or subtract in their heads. But at least they’re noticing shrinkflation more than I thought they would. I don’t think most people boycott companies or products on that basis, though. We’re inundated with it. If we did that every time we’d end up with nothing to buy in no time. We’re losing the battle with this and the companies know they can get away with it.
I thought the same thing…The majority prefers to pay more for less. Apparently the majority is stupid.
Unfortunately the effectiveness of economic boycotts went out the window with globalization, anyway.
Lana…
I looked at Rouse’s website. They do not advertise any store-issued digital coupons in their weekly circular (which is primarily what our series of stories is about). It appears the only digital coupons they have are on their website are manufacturers’ coupons. They say you have to sign up for an account there, e-clip the coupons you want, and then enter your phone number when you check out to apply the coupons you had e-clipped. I would be very surprised if you asked the cashier how to enter your phone phone if he/she replied “you can’t.”
Actually, the majority is saying they want to pay the same for less, and the minority is saying that they want to pay more for the same. Neither one is necessarily better than the other.
You can’t even begin to draw any conclusions about what is smart and what is stupid unless you know the unit prices of the items under consideration.
Other studies have also shown that some consumers, especially low income ones, prefer a decrease in size to an increase in price.
In practice though the choice is not always that simple. For example, because most consumers focus on the selling price not the quantity in the pack, sometimes there is a decrease in the size and also a decrease (usually a smaller %) in the selling price.
I agree with the Alan that to be able to make informed choices consumers need to know the unit price of items. And it is important to know that in this experiment the unit price increase change was kept the same (from 50c to 60c per oz) for both items. However, it is not clear whether participants were given any info about the unit prices.
Re:
“Some other interesting findings from the study include:
— Only 15-percent always check the weight of a product.
— Only 16-percent always check the unit price.
I am surprised that these numbers are even that high.”
If you also include those who OFTEN check the weight/unit price the numbers are even higher – unit price 51% and weight 44%.
However, in Australia for the unit price it is 80%. The higher level is to be expected since provision of unit pricing for packaged products is compulsory for many grocery retailers in Australia whereas in only a few states in the USA.
And consumer awareness of the benefits from comparing unit prices is very high in Australia due to regular consumer education programs.
The choice is easy for me, I check unit, weight, and price, if I see any shrinkage, I will no longer buy that particular brand. It seems grocery manufacturers don’t plan to lower prices that were raised during and after Covid. Gas prices went down but grocery stores are keeping the higher prices, one way or the other. I also switched to a grocery chain with better prices overall, from Stop and Shop to Market Basket. It’s a longer ride but it’s the principal, I will not shop in an overpriced market.
Same thing with restaurants, they raise the price or lower the portion, I find another restaurant.
My biggest [problem with shrinkflation in that I can no longer be accurate in my buying for meals, because I do not get the same amount in the packages that I did when I learned or developed the recipes. Frozen veggies used to feed two adults and two children one serving. Not anymore. I do not really care about the beverages because I try to buy mostly real food. I seldom buy ready-made meals as I cannot afford to pay the wages of the makers plus the grocery store’s profit margin on that. MOstly I try to avoid anything already made. I was buying sauces etc. but now I make those from scratch also. With my second-hand store kitchen gadgets I can make those things in very little time, so I bake bread, make yogurt, make mozerella, buns, baked goods, sauces, and most condiments. I have to feed three people and three cats on 1500 per month and pay rent, power, TV, Internet, hot water heater rental, and house phone plus a budget cellular plan. I cannot depend upon having three servings in a package of frozen food or anything in measured amounts.
What needs to be fixed is unit pricing. Make it all the same. Not per oz on 1 and per comodity on other brand.
they try not to let you compare unit prices
Some years ago, in a Boston Globe article, Breyers Ice cream said that when they reduced the size of their ice cream and kept the price the same, that they would not do so again. Then they did.
I will never buy Breyers again unless the sale price is equivalent to the old price for the original size. Instead, I will buy competing brands — even if the price is the same or more than the Breyers price.