If you have purchased ice cream recently you may have noticed a brand being sold in the freezer section in two different-sized containers n both sold at the same price.
The half-gallon of ice cream over time became around 1.75 quarts of ice cream. Now, some producers are selling the same-priced dessert in 1.5 quart containers.
This is an example of "product downsizing," where producers sell products in packages containing a smaller quantity, but at the same or similar price.
Examples may be found throughout the grocery store, including in frozen foods and dairy, cereals, juices, soaps, and paper products.
Packaging gets smaller or thinner. Eventually the older, larger packages disappear from shelves and the new packaging becomes the standard.
Instances of price downsizing appear to be growing in this economy.
As ingredient and transportation costs increase, sellers look for ways to pass the costs on to consumers.
Economists would regard downsizing package sizes while maintaining the same price for the package as a price increase," said Donald Coffin, an economist on the faculty of the Indiana University Northwest School of Business and Economics "It is also recognized in the construction of indexes of prices of consumer goods, and so it will show up in the calculation of inflation."
Consumers should consider product quantity along with such things as quality and nutritional value when comparison shopping.
For specific downsizing examples, visit www.mouseprint.org (a site maintained by consumer advocate Edgar Dworsky).
Opinions expressed solely are those of the writer. Joseph Pellicciotti is a lawyer, professor and associate vice chancellor at Indiana University Northwest.
Posted in Local on Saturday, July 26, 2008 12:00 am Updated: 12:24 am.
© Copyright 2009, nwi.com, Munster, IN | Terms of Service and Privacy Policy