Pricey Pink Hue is Pinching Women’s Pockets

1. Pink is my favourite colour, but it pinches my pocket just for being a woman! And, I refuse to take it anymore.

I am sure everybody would agree that while growing up, we imbibe all the societal customs, taboos, and, totems. As we develop into full grown individuals, these norms form a part and parcel of our personalities, thereby guiding our decision making abilities and the perspective from which we see the world. It won’t be wrong to say that we reflect whatever we are subjected to.

Today, I want to talk about me being a girl and therefore my “justified” childhood obsession with Pink colour and, lately, a stark realisation that left me utterly shocked. I want to tell everybody about the hidden gender bias that every woman is living with on daily basis. More importantly, the role of Pink colour in effecting the bias. This is a revelation of the true colours of the pink hue!

2. The Science of Psychological Marketing

Marketing psychology, also known as Neuro-marketing, is the application of psychological principles to a marketing strategy. To employ marketing psychology is to take advantage of some of the known constants of human behaviour to shape the marketing efforts and influence people’s purchasing decisions. Marketing psychology uses the varied aspects of the decision-making process of humans- their cognitive biases, desires, and fears, thereby tailoring the customer demands. The range of marketing psychology principles is vast and ever-growing, but here are some of the more common ideas marketers use to draw people in and speak to potential customers-

Action paralysis - It is a situation where humans become unable to make a decision or take action, even though they know what needs to be done. This is often due to overthinking, anxiety, or feeling overwhelmed by choices, leading to a feeling of being stuck. The solution is providing marketing campaigns that clearly and simply show why someone can feel okay about deciding to buy, often by appealing to concerns about health, safety, and well-being.
Decoy effect - Also known as the Asymmetric Dominance effect, it is a cognitive bias where introducing a third, less attractive option (the decoy) influences consumers to choose a more desirable, or more expensive option from the initial two choices. This creates a desirable alternative with a sense of higher value.
Familiarity and Brand Awareness - The measure of how familiar consumers are with a brand, its products, and its services. It's essentially how well a brand is recognized and remembered by its target audience. Higher brand awareness leads to greater familiarity and recognition, potentially influencing purchase decisions.
Impulsivity - Unplanned purchases driven by a sudden urge or emotion, rather than prior planning or consideration. Marketers often leverage this behaviour by using techniques that trigger emotional responses and a sense of urgency, leading to immediate purchases. For example, selling small “impulse buys” near the checkout area banks on people’s natural impulsivity, as do limited-time offers.
Loss Aversion - Loss aversion is a cognitive bias where the pain of a loss is felt more strongly than the pleasure of an equivalent gain. Loss aversion suggests that people are more motivated to avoid losses than they are to acquire gains of the same magnitude. For example, if you give a new customer something for free (or at a reduced price) for a limited time, they may be willing to pay more for it later to avoid losing it.
Reciprocity and foot-in-the-door psychology - Reciprocity is the social norm of responding to a positive action with a similar or equivalent one. The foot-in-the-door technique leverages this norm by first getting someone to agree to a small request, making them more likely to agree to a larger request later.
Social proof - Social proof refers to people’s drive toward conformity. If you can make it seem like everyone else is doing something, other people will likely be more willing to do it, too.
Visual cues and Colour Psychology - Small adjustments to how your brand presents itself to consumers can alter how they view your business. For example, changing the colour of your landing page to PINK can lead to more Women buyers!

3. Pink Tax- the Unethical Face of Psychological Marketing

Goods that are manufactured and branded to fit the needs of the female gender, are often categorized with pink packaging or detailing. Whether this is from product design or branding, the colour pink is pivotal in the marketing techniques of big companies. In comparison, identical men’s products of another colour, tend to be of the same or even better quality, but cost less. The phenomenon of women paying more for products and services compared to men, even when those products and services are functionally identical or very similar comes under the domain of Pink Tariff. It's not an official tax, but rather an unofficial price premium that women face due to gendered marketing and pricing practices. This is very important, as many women simply accept the fact that these items are pricier and continue to purchase them without any questioning. The pink tax expands beyond goods and enters the realm of services, like haircuts, dry cleaning, etc. Given below are few important statistics that are vital to understand the extent to which Pink Tax is harming women.

Toys for girls are priced 55% more than that for boys.
Clothes for girls are priced 26% more than those for boys.
Women pay 56% more compared to men when buying essential personal care items like napkins, soaps, and shampoos.

Several questions come to our mind while going through these figures. I have attempted to discuss these.

I. Do women really spend more than men?

Yes, women do spend more than men. However, not because they like to, but because they are made to! According to research, women’s products cost 7% more on average than comparable men’s products. For some categories like personal care, that number rises to 13%. Over time, this price discrepancy makes women spend more than men for the same products. Products for women are often wrapped in “feminine” packaging—soft colours, delicate fonts, floral designs. While these aesthetic changes don’t improve or even change functionality, for manufacturers, they do justify higher prices. It is well understood by companies that women are more brand-loyal and less price-sensitive due to the ingrained societal expectations around beauty and self-care. As a result, they price women’s products at a premium without significant backlash. Society has incorporated in women the belief that they necessarily need specialized products to meet beauty and hygiene standards. The idea that women’s products are more sophisticated fuels the pricing gap, despite no evidence of actual superiority. The Pink Tax isn’t just limited to these retail goods. Women frequently pay more for dry cleaning, haircuts, and even vehicle repairs. A simple haircut for a woman, even when it requires the same effort as a man’s, often comes at a significantly higher cost.

II. Is Pink Tax just another trend or an age old practice?

The history of the pink tax traces back to years, but the term itself was coined in 1994 in California. It emerged following the realisation that brands in various cities consistently charged women higher prices for goods and services than men. This marked the formal recognition of a phenomenon that had long been observed—an unfair pricing disparity based on gender.

III. Why does Pink Tax even exist?

Several factors contribute to the existence of pink tax:

Gendered Marketing: Companies exploit traditional gender stereotypes to justify higher prices for women’s products. Pink packaging, floral scents, and promises of beauty create a perceived higher value.
Limited Choices: The selection of gender-neutral options for certain products might be limited, forcing consumers towards pricier “women’s” versions.
Lack of Awareness: Many consumers may not be aware of the pink tax, making them less likely to question the price difference.

IV. Isn’t this an institutionalised gender discrimination?

Clearly Yes. Society has slowly created deep inherent biases that convince women such products are necessary, thus compelling women to be less price sensitive than men. These biases for the most part are left untouched by men. Consequently, men’s products often remain in neutral packaging that specifies the product’s offerings. Said product may even come in a squeeze tube while women’s products continue to be in glass bottles and eye-catching expensive packaging that is meant to draw out emotion for the female consumer in order to prey on the insecurities of believed gender expectations. While the persistence of the pink tax has root in societal and cultural norms, it is businesses which are directly passing on the economic disparity to consumers. Often, brands are just seizing the opportunity to overprice female items in a continuation of what has now been contrived as a norm of female consumption.

All these antics, as well as perceived expectations from news and media, are teaching women from a young age, the expectations of them due to their inclusion in the female gender. Women are programmed to believe that their natural appearance will not be good enough and the only way to be accepted is to purchase these pink products branded to them. It goes unspoken the pressure that women feel in their daily lives to live up to society’s expectations of their appearances. Often women believe that their success is directly reliant on their appearance. These expectations go hand-in-hand with gender pricing as women are taught from a young age to purchase pink items and appear feminine.

V. Why don’t many women know about it?

One of the biggest issues with the Pink Tax is that most women don’t even realize they’re paying it. Lack of awareness allows the practice to continue unchecked. Women need to start comparing prices and choosing gender-neutral alternatives when possible. As consumers, we can push for transparency by supporting companies that price their products fairly.

VI. Is Pink Tax Justifiable?

Emphatically not. These gender differences cannot be justified. Companies are simply extracting more resources from women while creating these products in a way that is not significantly different than the production process of comparable men’s items. Pink Tax is just an added burden that goes unnoticed in the daily lives of each woman.

4. How Pink Tax perpetuates and furthers gender inequality.

The pink tax is a result of gender-based pricing and this inequality is more than a minor inconvenience. It is an added financial burden on women that compounds many other issues.

i. Women are being pushed into poverty

A United Nations report highlighted that globally, women earn just 77 cents for every dollar men earn. The World Economic Forum's Global Gender Gap Report 2022 reveals that only five out of 146 countries analysed have achieved scores higher than 0.80 in wage equality, with 129 countries reporting a decline in women's labour force participation compared to men's. According to the Global Gender Gap Report 2022, there's a 19% pay disparity between men and women in India, even for equal work, with women bearing the brunt, especially in sectors like agriculture, where they do 80% of the work. This wage gap persists across various industries, from agriculture to IT, driven by multiple socio-economic factors. Clearly, this combination of higher expenses and lower earnings increases women's financial vulnerability and diminishes their purchasing power.

ii. Financial Stability of women is being compromised

Considering the fact that women earn less and are made to spend more, this is also seen to affect their Savings rates and Social Security benefits. Meanwhile, they have longer life expectancies and need to plan for more years in retirement. This also puts women at a significant disadvantage from a retirement standpoint.

iii. Millions of women can’t even afford their periods - Period Poor Women

Period poverty refers to the inability to afford and access menstrual products, sanitation and hygiene facilities and education and awareness to manage menstrual health. Simply put, period poverty costs women and girls too much. Menstrual products are prohibitively expensive for millions of people worldwide. Gender-blind policies and tax laws – the “pink tax” on feminine products – are in part to blame. For example, in many states within the United States, Viagra (for erectile dysfunction) is classified as a tax-exempt health product, while sanitary products are classified as luxury goods and taxed at the highest rate. I won’t hesitate to say that whoever thinks tampons and pads are luxury items has obviously never bled through their jeans in the middle of the school day or missed work because their cycle was causing them pain!

In the United States of America, 1 in 4 teens and 1 in 3 adults struggle to afford period products. A 2020 survey by Plan International showed that 3 in 10 girls in the United Kingdom struggled to afford or access menstrual products and more than half of them used toilet paper instead. It must be noted that this is talk of the so called Developed Nations, we are not even mentioning developing countries!

5. Legislation and Litigation

As already mentioned, Pink Tax is not an official tax, rather an unofficial price premium that women face due to gendered marketing and pricing practices. While there's no universal legal framework prohibiting the pink tax, several jurisdictions have taken steps to address gender-based pricing disparities, and some litigation has occurred.

New York - In 2020, New York enacted a law prohibiting businesses from charging different prices for substantially similar goods or services marketed to different genders.
California - AB 1287, passed in 2023, aims to prohibit businesses from charging different prices for similar products and services based on gender.
United States of America - The bill, Pink Tax Repeal Act, 2021 was introduced in the US, aimed to outlaw gender-based price discrimination but did not become law.
Mexico, Ecuador, and Barbados - These countries have also abolished taxes on menstrual products.
China - A group of university students in China initiated legal proceedings against cosmetics giant L’Oreal regarding the pink tax.
India - it is mention worthy that in a recent judgment, the National Consumer Disputes Redressal Commission (NCDRC) addressed a case involving discriminatory pricing of personal care products. The Commission ruled that companies must ensure fair pricing practices and avoid discrimination based on gender. While there is no law which explicitly prohibits the Pink Tax, there are provisions in the Indian Constitution which can be used in the courts and enforced to ensure gender equality.
a) Article 14- Right to Equality
b) Article 15- No discrimination on the basis of sex, caste, race, religion.
c) Consumer Protection Act, 2019- prohibits unfair practices which exploit customers.

6. Let us Un-pink the Discrimination:

While the responsibility lies on men and women alike, women must act as fore runners in denouncing this unethical business tactic. The following steps can help us in combatting the devil namely Pink Tax.

Compare Prices: Before making a purchase, we should check the prices and features of both men’s and women’s versions of the same product. Sometimes, a better deal awaits us in the “wrong” section.
Embrace Unisex Products: We should opt for unisex products whenever possible. This not only saves money but also challenges the idea of gendered products.
Spread Awareness: Talk to friends and family about the pink tax. The more informed the consumers are, the less effective this pricing strategy becomes.

7. Blue Tax- the impending disaster

"Blue tax" refers to the idea that men may be charged more for certain goods or services than women. While the concept of a "blue tax" is less established than "pink tax," some argue it exists in situations like club cover charges or certain product pricing, where men may face higher costs than women.

Even this concept is not at all justified and, should be nullified in totality and stopped from creeping into the society before it engulfs us and we are left with no option but writing articles to spread awareness about another challenge pestering mankind. The only thing we should demand is justice for the womenfolk for being harmed for years, and not a reversal in the stereotyping game.

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