Gender differences in the pricing of professional services: Implications for income and customer relationships

This study extends our understanding of the effects of gender on both pricing behavior and owner income by examining both relationships in an experimental simulation involving owners of veterinary practices. Consistent with prior research, women owners are found to employ “compassionate pricing” more than men, even when the same services are offered. The process by which gender influences price, however is found to depend in part on one’s relationship orientation. Specifically, women are found to have a higher relationship orientation than men and relationship orientation is found to directly bias women’s transactional pricing towards more compassionate pricing. The relationship between role orientation, pricing, and income, however, is rather complex. While lower prices have a negative relationship with owner income, relationship orientation is found to have a positive direct influence on income. As a result, the influence of relationship orientation on income is found to be both negative, due to lower prices, and positive, due possibly to the resulting customer loyalty.