Inflation coping mechanisms by manufacturers and their impact on brand trust, moderated by brand loyalty, product type (staple vs. specialty) and brand type (private label vs. A-brand)

Businesses and consumers are facing significant threats from rising inflation, resulting in increasing prices and decreasing purchasing power. In response, manufacturers in the consumer goods industry are responding by implementing both controversial and creative strategies to mitigate the impact on their business outcomes. Two key strategies are shrinkflation, where the size or quantity of a product is reduced without a corresponding price decrease, and price increases, where the price of a product is raised while maintaining the same size/weight. This study explores inflation coping strategies, focusing on the relationship between inflation coping strategies (shrinkflation or price increase) and brand trust, as well as how price increases have an impact on brand trust and the corresponding purchasing decisions that are being made by consumers.