Does this sound familiar? You are marketing a new option, say with 20% more product or 50% more minutes on a calling plan, but you can’t get customers to pay for even a fraction of the additional value. Some don’t even notice it. However, the moment you shave just a few percentages off the regular quantity, the same customers notice it immediately, demand a discount, and complain loudly on social media or even start a petition to bring back the old size. This is no exaggeration. Five different petitions were launched on Change.org to get food company Mondelez International to bring back the original size of its Toblerone chocolate bars, which it had shrunk in an effort to reduce costs.
Research: Customers Notice When Products Shrink More Than When They Get Bigger
And your prices should reflect that.
March 07, 2017
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New!
HBR Learning
Marketing Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.