The package downsizing strategy allows a manufacturer to raise unit prices while maintaining package prices in a range acceptable to consumers. The success of the strategy depends on the retailers' ability to transmit the cost of downsized products into consumer prices at higher rates compared to transmitting equivalent increases in the cost of nondownsized products. In this article, we test this hypothesis by empirically analyzing the retailers' pass-through behavior in response to downsizing. Using data on ice cream purchases, our main finding is that downsizing is significantly associated with the price pass-through. On average, downsized products' pass-through rate is 8.4 percentage points higher than the rate for nondownsized products. An important implication of this result is that in competitive environments in which manufacturers prefer to avoid substantial increases in package prices, downsizing could be a win–win strategy for manufacturers and retailers in response to increasing production costs. [EconLit Citations M31, D12, D4].

中文翻译：

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包装缩小的零售传递

包装缩小策略允许制造商提高单价，同时将包装价格保持在消费者可接受的范围内。该策略的成功取决于零售商将缩小产品的成本以更高的比率转化为消费者价格的能力，而不是转移非缩小产品成本的同等增长。在本文中，我们通过实证分析零售商应对缩减规模的传递行为来检验这一假设。使用冰淇淋购买数据，我们的主要发现是缩小尺寸与价格传递显着相关。平均而言，缩小产品的通过率比非缩小产品的通过率高8.4个百分点。这一结果的一个重要含义是，在制造商更愿意避免包装价格大幅上涨的竞争环境中，缩小尺寸可能是制造商和零售商应对生产成本增加的双赢策略。[EconLit 引文 M31、D12、D4]。