The phenomenon you describe, where companies charge more for products while simultaneously reducing the quantity or quality, is often referred to as "shrinkflation" or "downsizing." It's a marketing strategy used by companies to maintain or increase their profit margins without drawing too much attention from consumers. Several factors contribute to their ability to get away with this practice:
Consumer perception: Companies may use subtle tactics to minimize the perception of change. For example, they might slightly decrease the size of a product or the quantity of its contents, hoping that consumers won't immediately notice the difference. People may continue buying the product without realizing they are getting less value for the same or higher price.
Inflation and cost pressures: Inflation and rising production costs can put pressure on companies to maintain their profitability. Rather than raising prices significantly, they might opt to decrease the quantity or quality of the product to mitigate the impact on consumers and preserve their profits.
Lack of transparency: Some companies might not openly advertise changes in product size or quality. As a result, consumers may not be aware that the product they are purchasing now is different from what they used to buy.
Brand loyalty: Consumers who are loyal to a particular brand or product may be less likely to scrutinize changes closely. Brand loyalty can make customers more forgiving and accepting of small changes in the product.
Gradual changes: Companies may implement reductions gradually over time, making it harder for consumers to notice the cumulative effects. A series of small changes may be less conspicuous than a sudden significant shift.
Limited alternatives: In some cases, companies may take advantage of the lack of direct substitutes for their products. If there are no comparable alternatives, consumers may continue buying despite the changes.
Advertising and marketing: Companies may use creative marketing and advertising to distract consumers from changes in product size or quality. They might highlight other features or aspects of the product that remain unchanged to maintain consumer interest.
It's worth noting that while companies might initially benefit from such tactics, there can be consequences in the long run. If consumers eventually become aware of the changes and feel deceived, it can damage the company's reputation and erode consumer trust.
To protect yourself as a consumer, it's essential to stay vigilant and read product labels and packaging carefully. Be aware of changes in product sizes or formulations and compare prices per unit or weight to make informed purchasing decisions. If you notice a pattern of deceptive practices, consider supporting alternative brands that are transparent and value-driven.