What's with all the tiny soda cans? And other grocery store mysteries, solved.

- – Shrinkflation, where companies reduce the size of products while keeping prices the same, remains prevalent despite significant consumer backlash. This tactic is part of a broader strategy to keep prices accessible without overtly raising them. – Price pack architecture involves offering products in various sizes and prices to cater to different consumer preferences and maximize profits. Coca-Cola's introduction of mini cans is an example of targeting consumers willing to pay a premium for smaller, convenient sizes. – The "cookie jar effect" is a strategy where larger, resealable packages encourage more frequent use. Products like Brita water filters and electric toothbrush heads in multipacks leverage this effect to increase consumption. – Coca-Cola's success with price pack architecture began in Latin America and has now been applied globally. The strategy allows for price discrimination, charging different prices for different sizes to meet various consumer needs without changing flavors or brands. – Data reveals that many consumers prefer smaller packages at the same price over larger, more expensive options. This preference drives companies to use shrinkflation as a viable strategy to manage costs while maintaining customer base. – Offering various package sizes allows companies to segment the market and influence consumer behavior. For example, larger packages like snack jars encourage more frequent use, while smaller packages appeal to those seeking convenience or portion control. – The economic logic behind shrinkflation and price pack architecture helps companies maintain psychologically appealing price points, such as keeping prices below $4.99, even if it means offering less product. – Companies use extensive data to gauge consumer reactions and preferences. This data-driven approach helps in designing package sizes and prices that maximize sales and meet diverse consumer needs, such as the success of Coca-Cola mini cans amid declining soda consumption. – The concept of price pack architecture has revolutionized product marketing and sales, leading to a significant increase in the variety of package sizes available in stores. This strategy meets different usage scenarios and consumer preferences, from on-the-go products to bulk purchases. – Companies use shrinkflation as part of their broader price pack architecture to keep prices stable. Even with consumer dissatisfaction, the tactic allows companies to cater to price-sensitive customers while managing production costs.