The 2010 issue of Consumer Reports includes some surprising information about how products are priced. The group found that companies tend to price products for women significantly higher than identical products geared toward male shoppers.

Background: Price Sensitivity

As a recent post on the Priceless blog explains, various studies have shown that women are less price sensitive than men. One study, which used something called an ultimatum game, asked participants to split $10 between two people:

• A divide proposed: One participant suggests a division of money (I get $7, you get $3).
• Acceptance or rejection: The other participant either accepts or rejects the offer; if the offer is accepted, both get the proposed money. If rejected, neither party gets any money.
• Gender twist: Among one group of subjects, the researchers kept the two participants in separate rooms and did not reveal their gender to each other; in another group, participants learned the first names (and thus the genders) of their partners.
• Gender bias discovered: In the non-gendered study, the average offer was $4.68. When a participant was offering money to a male, though, the average rose to $4.89; when a woman was offered money, the average amount was only $4.37.

The conclusion here, it seems, is that we women are less sensitive to price than men (and so accept lower offers) and are perceived as willing to settle for less (and so are offered less to begin with).

The Lesson: Shop Like a Man

Consumer Reports gives the following examples of gender-based price biases for drugstore items:

• Barbisol shaving cream: 15 cents per ounce for men; 26 cents per ounce for women.
• Degree antiperspirant: $3.59 for 2.7 ounces for men; $3.59 for 2.6 ounces for women.
• Pain reliever: Regular Excedrin cost 50 cents less than the Menstrual Relief variety, though they have the same amount of gel caps and the same active ingredients.
• Body wash: Nivea sells scents geared toward men for $2.00 less per bottle than those intended for women.
• Eye lotion: The less feminine version goes for $5.00 less.

So, if you’re not too scent-sitive, choose products intended for men to save money. Remember, packaging – which is often designed with heavy gender suggestions – is only on the outside.

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