In the fall semester, Alex noticed that the plastic cola bottles in the vending machines at his university had changed shape. Upon further investigation, he realized that each bottle contained 2 ounces less beverage than previous bottles, even though he paid the same price as last semester. The pricing objective of the beverage company is to:
A) increase profits by reducing the amount provided in each bottle.
B) build traffic at the vending machines by changing the shape of the bottle.
C) undercut the competition by changing the shape of the bottle.
D) increase market share by reducing the amount provided in each bottle.

Question

Quizplus · Accepted Answer

The beverage company's pricing objective is to increase profits by reducing the amount provided in each bottle while keeping prices the same. This is often referred to as "shrinkflation," which is a tactic used by companies to maintain their profit margins by reducing the product size rather than raising prices. Therefore, the correct option is A.

In the Fall Semester, Alex Noticed That the Plastic Cola