TLDR Marketing · MISCELLANEOUS

WHY DO PRICES RISE LIKE ROCKETS…BUT FALL LIKE FEATHERS?

insight.kellogg.northwestern.edu3 min read

Summary from the TLDR Marketing newsletter

The "rockets and feathers" phenomenon describes how prices rise quickly when costs increase but fall slowly when costs decrease. Consumers typically make automatic decisions but think more carefully when prices change. Companies maintain high prices when costs drop to avoid triggering consumer scrutiny and brand switching.