💨 Abstract

In times of economic uncertainty, how a price is communicated to consumers can significantly influence their purchasing decisions, according to a University of Virginia researcher, Derick Davis. Small price increases are often perceived as more extreme and painful, while larger discounts can lead to impulsive purchases. Companies may use tactics like shrinkflation (reducing package sizes while keeping prices the same) or introducing new, cheaper brands to mitigate price increases.

Courtesy: wtop.com

Summarized by Einstein Beta 🤖