Diana Kelly is the brand manager for a company that has a new cream that gives consumers brighter, shinier nails. It will be sold in major retail outlets like Target, Walmart, CVS, and Walgreens. As Kelly conducts research to develop a pricing strategy, she discovers examples of price discrimination for products sold to women. In fact, women’s products were priced higher than men’s 42% of the time. Kelly considers having separate packaging for men and women and price the firm’s product higher for women. Will this help the company maximize profits? Is price discrimination ethical? Students are asked to explore mechanisms for price discrimination and gender-based pricing.
Pink Tax: Gender and Other Price Discrimination Factors
by: Aradhna Krishna
Click on any button below to view the available document.
Make sure you are registered and/or logged in to our site to view product documents. Once registered & approved, faculty, staff, & course aggregators will have access to full inspection copies and teaching notes for any of our materials.
If you need to make copies, you MUST purchase the corresponding number of permissions, and you must own a single copy of the product.
Electronic Downloads are available immediately after purchase. "Quantity" reflects the number of copies you intend to use. Unauthorized distribution of these files is prohibited pursuant to term of use of this website.
This product has a teaching note available. Available only to Registered Educators. Please login to view it.
After reading and discussing the material, students should:
- Explain various mechanisms for consumer segmentation and price discrimination.
- Contrast cost-plus versus willingness-to-pay pricing.
- Debate the “pink tax” and gender-based pricing.
- Discuss ethical issues in pricing.