Value deflation

Author Topic: Value deflation  (Read 464 times)

Offline munna99185

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Value deflation
« on: April 03, 2014, 04:05:45 PM »
When companies cut their costs without increasing prices for consumers. Value deflation occurs when retailers and service providers give out smaller portions, fewer services and generally provide less for the same price. Examples of value deflation include reductions in the amount of food in a typical package such as a juice box or bag of potato chips, reduced portion sizes at restaurants, and curtailed cleaning and concierge services at hotels. Of course, all of these businesses continue to charge the same price despite the reduction in products or services. This method is an alternative to raising prices that the consumer is less likely to notice. [Source: http://www.investopedia.com]


Sayed Farrukh Ahmed
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Faculty of Business & Economics
Daffodil International University

Offline Rozina Akter

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Re: Value deflation
« Reply #1 on: April 07, 2014, 05:57:34 PM »
nice post
Rozina Akter
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Department Of Business Administration

Offline shahanasumi35

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Re: Value deflation
« Reply #2 on: April 09, 2014, 07:43:54 PM »
Good post.

Offline gour2010

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Re: Value deflation
« Reply #3 on: April 15, 2014, 09:20:49 AM »
me should say this is good post

Offline Jeta Majumder

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Re: Value deflation
« Reply #4 on: April 20, 2014, 06:46:23 PM »
very useful post sir..  :)

Offline sajib

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Re: Value deflation
« Reply #5 on: April 28, 2014, 04:43:42 PM »
When companies cut their costs without increasing prices for consumers. Value deflation occurs when retailers and service providers give out smaller portions, fewer services and generally provide less for the same price.

This is also referred to as "shadow inflation."

http://www.investopedia.com/terms/v/value-deflation.asp
Kamrul Hossain Sajib
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Daffodil International University