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The Kellogg School of Management at Northwestern University has found that uninformed women seeking automotive repairs end up paying more than men, yet they are more successful negotiators when it comes time to talking down a service price. The study, “Repairing the Damage: The Effect of Price Expectations on Auto-Repair Price Quotes,” was conducted by Kellogg professors and a student working with AutoMD.com, an online automotive repair information site.
Men and women were asked to call repair shops seeking quotes to replace the radiator on a 2003 Toyota Camry. The callers were to appear well-informed with a good idea of the expected costs, misinformed and expecting to pay more, or completely uninformed. Both sexes received similar quotes when they expressed knowledge of the market price, but pricing for men was lower when they acted uninformed. Both men and women paid higher-than-average prices when they expressed they expected to pay more.
“Our findings suggest that auto shops may assume men know the market price for a given repair, so they automatically grant it. However, they may not expect women to be knowledgeable in this area, so the perception is they can charge them more,” says Meghan Busse, an associate professor of management and strategy at the Kellogg School. In an interesting twist, the study also found that women we were more able to get their requested price ten percent more often then men. “The same kind of cultural expectations that cause repair shops to overcharge women are probably also responsible for showing preference toward women in negotiations,” remarked Florian Zettelmeyer, the Nancy L. Ertle Professor of Marketing.
Based on the study, researchers suggest that consumes do their research and call around for multiple quotes. To secure the best deal, always appear well-informed and reveal that you know what the expected price should be. If the shop is asking for a higher rate, request a discount. Check out the University’s press release below.Continue reading Women pay higher car repair prices than men, but negotiate better
Women pay higher car repair prices than men, but negotiate better originally appeared on Autoblog on Wed, 03 Jul 2013 09:28:00 EST. Please see our terms for use of feeds.
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