Pink Tax: Price Discrimination and Product Versioning Exercises

by: Aradhna Krishna

Publication Date: November 29, 2018
Length: 8 pages
Product ID#: 1-430-498

Core Disciplines: Economics, Marketing/Sales

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Teaching Note

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Authored by Aradhna Krishna, these exercises can be used in courses covering pricing strategy, segmentation, and price discrimination.  They can also be used to complement the WDI Publishing Case “Pink Tax: Gender and other Price Discrimination Factors”. 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. Kelly is given various segmentation schemes produced by consultancy teams to evaluate. Students are asked to evaluate the segmentation schemes and determine how the product should be versioned and priced.

Teaching Objectives

After reading and discussing the material, students should:

  • Demonstrate an understanding of different kinds of segmentation.
  • Understand how reservation price may be affected by market segment.
  • Be able to discuss the concept of consumer surplus.