This story was featured in the Nightcap newsletter by CNN Business. To receive it in your inbox, register for free here. New York CNN —. In recent years, it seems food companies have been playing tricky psychological games with consumers. When a familiar favorite suddenly tastes different or the serving size seems smaller, it’s likely that your experience is not unique. As food companies have faced significant cost increases, many have resorted to two clever tactics known as shrinkflation and skimpflation to prevent raising prices. Shrinkflation refers to a reduction in the size or volume of a product while keeping the price the same—or sometimes even increasing it. Skimpflation involves more subtle changes, such as using less expensive ingredients to lower expenses. Both methods have angered consumers on social media who, understandably, feel misled. However, when companies merely transfer price hikes to consumers, they often face significant backlash — just look at McDonald’s. Related article: Americans continue to distance themselves from McDonald’s. Until recently, companies could avoid addressing angry customers by ignoring them or by issuing a carefully crafted statement in hopes of regaining their favor. Their comments frequently sounded like this: We understand your frustration, but please have some compassion for us as well. By the way, we didn’t increase our prices as much as people are saying, so we’re not to blame. After seeing their revenues drop, companies like McDonald’s, Wendy’s, and Burger King introduced value menus and promotions and in some cases, pledged to be more careful with price hikes. However, issues related to shrinkflation and skimpflation appear to have been ignored by these companies.
