Don’t dare to play with quality! Consumer reactions to skimpflation
(A2025-125759)

AUTHORS

Marta Pizzetti, emLyon Business School; Diletta Acuti, University of Bath; Monica Grosso, EmLyon Business School

ABSTRACT

The ongoing global uncertainty has led many companies to adopt skimpflation—a strategy where product or service quality is reduced while prices remain unchanged. This approach may have significant consequences for businesses, which risk damaging their reputation, and for consumers, whose well-being and health could be adversely affected. In this research, we conduct a series of experiments to investigate how consumers respond to skimpflation. In Study 1, we compare skimpflation to price increases and find that skimpflation generates stronger perceptions of corporate greed than price increase. Study 2 demonstrates that skimpflation is perceived as a more unfair pricing strategy than an absolute price increase, which contributes to heightened perceptions of greed. Study 3 confirms and extends these findings across various product categories. In future studies, we aim to explore whether and how perceptions of unfairness and greed influence consumer product choices.