Definition
from dailymail.co.uk
Product downsizing is the practice of a manufacturer reducing the size or quantity of goods included within a package in response to rising costs. Industrywide, this has been referred to as “shrinkflation.”
Product downsizing is often done in lieu of raising the per-package price to customers and thereby preventing customers from switching brands or trading down.
Trading down (also called buying down or buy down) is the act of consumers switching purchases to less-preferred branded products to save money. These can be “peer” products on sale, lower-tiered products, or private label/store brand products. [2]
This is distinct from the real estate use of “buy down” meaning obtaining a lower interest rate by making a larger upfront payment, paying for discount points, or in some other manner.
See Also
References
- Universal Marketing Dictionary Project, 2024.
- comScore, The Effects of the Recession on Brand Loyalty and “Buy Down” Behavior, December 2012.