The incredible shrinking potato chip package. Julie is brand manager for potato chips. Due to an abrupt rise in the price of potatoes, she must raise the unit price 15%

The incredible shrinking potato chip package. Julie is brand manager for potato chips. Due to an abrupt rise in the price of potatoes, she must raise the unit price 15% to maintain the already-slim margins. She hits on the idea of reducing the package contents 13% but retaining the current price. This would result in the same revenue as before if unit sales don’t change. She suspects that customers who would balk at a higher price won’t notice that the bag is slightly less full. Her boss assures her that “package shorting” is standard practice in the industry and may well have the intended effect. It is also legal, because the package will indicate the correct net weight. The boss leaves the decision to Julie, and she must decide whether package shorting is a deceptive practice.

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