Downsizing price increases
Subtitle: a greater sensitivity to price than quantity in consumer markets
By: John T. Gourville, Jonathan J. Koehler
Contributors: Koehler, Jonathan Jay, 1960-; Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 04-042; Working paper (Harvard Business School. Division of Research) -- 04-042
Publisher: Division of Research, Harvard Business School
Published: 2004
Place of publication: Boston
Language: eng
Number of pages: 37
Description: As the cost of goods increase, manufacturers routinely pass these costs on to consumers through higher prices. A less obvious strategy is to maintain price, but to reduce the size of the product. In many ways, this downsizingshould mirror a straight price increase when it comes to consumer behavior. Marketplace and experimental data show this is not the case and that consumers are more sensitive to changes in price than to changes in quantity.
Notes: "January 2004 draft."

Includes bibliographical references.