Pricing and Gender Equality

Gender equality also has its space for discussion in relation to companies' pricing strategies.

Friday, March 8, 2019

Ariel Baños, price management specialist and founder of, explains the impact of price differences by gender and recommendations to avoid polemics between companies and consumers.

It has been called the pink tax on the surcharge paid by women on certain products and services because of their gender. But there is also the reverse situation, i.e. cases where women pay lower prices than men.

The Offense of Paying Higher Prices
Companies may charge higher prices for similar products or services as long as such policies are based on socially accepted criteria. For example, a higher price would be acceptable if a unit is purchased instead of a family pack, or if immediate delivery is chosen instead of a scheduled order, or if a company loyalty card is not available. However, it is not socially justifiable that the highest price is because of the gender of the buyer.

The Offense of Paying Lower Prices
Discounts can also be offensive when your reasons are not socially acceptable. For example, a retiree or student is welcome to access a lower price on certain products or services. However, that the lower price is because of the gender of the buyer may be considered offensive in an environment that increasingly encourages gender equality.

The article notes that a study published in 2015 by the New York City Department of Consumer Affairs revealed that, on average, women pay 7% more than men for products with similar characteristics. This difference is not consistent. For example, while girls' clothing is 4% more expensive than boys' clothing, the difference reaches 13% for personal care and hygiene products such as shampoo, deodorants, and razors.

Read full article at (In Spanish).

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