Economic concept
Experience good
A product whose quality is learned mainly through use.
All conceptsWhy do products from brands we trust sometimes get worse?
A trusted name is an asset built from past quality, but the product sold today is produced by current incentives and current operations. If managers can reduce cost before customers detect the change, yesterday's reputation can temporarily protect today's weaker offer. That pattern is possible, not universal: many brand changes improve products, and perceived decline can also reflect nostalgia or a changed recipe preference.
See it at workWhy can a company make a product worse and still make more money?
Profit depends on price, cost and quantity, not quality in isolation. If a cheaper input or lower service level saves more immediately than it reduces sales, profit can rise for a period. The strategy is bounded: once customers detect the change, switch or spread information, the lost demand and damaged reputation can exceed the original saving.