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Research Details
From Stigma to Competence: ‘Black-Owned’ Labels and Expertise Stereotypes in Psychoactive Drug Markets
Abstract
This research examines the effect of ‘Black-owned’ labeling on cannabis and psychedelics brands, given the stigmatized and risky nature of the product category. Building on prior studies examining ownership labeling through a social justice or discrimination lens, we introduce an expertise stereotype framework. In Study 1, participants retrieved domain-specific expertise stereotypes in drugs and non-drugs categories for owners of various social groups. Utilizing these findings, we contrast the effect of ‘Black-owned’ labels on cannabis versus candy products in Study 2. ‘Black-owned’ labeling increases Black participants’ intentions to consume candy, but not cannabis. This pattern reverses for White participants such that ‘Black-owned’ labeling increases intentions for cannabis, but not candy. Whereas out-group members’ response is consistent with expertise stereotypes, in-group members’ support does not extend to the stigmatized category. In Study 3, field ad campaigns reveal that ‘Black-owned’ (vs. no) label on a psychedelics ad boosts click-through by 21%, while a ‘Woman-owned’ (vs. no) label reduces by 15%, consistent with expertise stereotypes. Study 4 surveyed 37 industry professionals to juxtapose entrepreneurs’ expectations of responses to ownership labeling with consumer responses. These findings advance the discourse on ownership labeling and provide insight into nuanced consumer responses in this category.
Type
Working Paper
Author(s)
Date Published
2024
Citations
Achar, Chethana. 2024. From Stigma to Competence: ‘Black-Owned’ Labels and Expertise Stereotypes in Psychoactive Drug Markets.