Recent social movements, such as Black Lives Matter, have prompted brands and retailers to increase the use of minority ownership labels (e.g., Black-owned, woman-owned). The current research examines when and why minority ownership awareness influences consumer behavior, particularly for brand failures. When a brand failure occurs, minority ownership awareness can result in higher brand evaluations and greater willingness to pay, a phenomenon referred to as the minority ownership awareness effect. This effect and its boundary conditions are demonstrated through five experiments and analyses of over 27,000 Google reviews for Black-owned restaurants. The authors propose that minority ownership awareness invokes a type of underdog effect, which is pronounced in situations involving product (vs. moral) failures, among people with low (vs. high) social dominance orientation, and among those people with a high (vs. low) internal motivation to respond without prejudice.
AakerJennifer L.FournierSusanBraselS. Adam (2004), “When Good Brands Do Bad,” Journal of Consumer Research, 31 (1), 1–16.
2.
AhluwaliaRohiniBurnkrantRobert E.UnnavaH. Rao (2000), “Consumer Response to Negative Publicity: The Moderating Role of Commitment,” Journal of Marketing Research, 37 (2), 203–14.
AndorMark A.CoxJamesGersterAndreasPriceMichaelSommerStephanTombergLukas (2022), “Locus of Control and Prosocial Behavior,” National Bureau of Economic Research Working Paper 30359, https://doi.org/10.3386/w30359.
5.
AnejaAbhayLucaMichaelReshefOren (2023), “The Benefits of Revealing Race: Evidence from Minority-Owned Local Businesses,” National Bureau of Economic Research Working Paper 30932, https://doi.org/10.3386/w30932.
6.
ArselZeynepCrockettDavidScottMaura L. (2022), “Diversity, Equity, and Inclusion (DEI) in the Journal of Consumer Research: A Curation and Research Agenda,” Journal of Consumer Research, 48 (5), 920–33.
BabarYashAdeliAliBurtchGordon (2023), “The Effects of Online Social Identity Signals on Retailer Demand,” Management Science, 69 (12), 7335–46.
10.
BarnesAaron J.ShavittSharon (2024), “Top Rated or Best Seller? Cultural Differences in Responses to Attitudinal Versus Behavioral Consensus Cues,” Journal of Consumer Research, 51 (2), 276–97.
11.
BatesTimothyRobbAlicia (2013), “Greater Access to Capital Is Needed to Unleash the Local Economic Development Potential of Minority-Owned Businesses,” Economic Development Quarterly, 27 (3), 250–59.
BellDerrick A. (1995), “Who’s Afraid of Critical Race Theory?” University of Illinois Law Review, 1995 (4), 893–910.
14.
BhagwatYashodaWarrenNooshin L.BeckJoshua T.WatsonGeorge F. (2020), “Corporate Sociopolitical Activism and Firm Value,” Journal of Marketing, 84 (5), 1–21.
15.
BhattacharjeeAmitBermanJonathan Z.ReedAmericusII (2013), “Tip of the Hat, Wag of the Finger: How Moral Decoupling Enables Consumers to Admire and Admonish,” Journal of Consumer Research, 39 (6), 1167–84.
BoneSterling A.ChristensenGlenn L.WilliamsJerome D. (2014), “Rejected, Shackled, and Alone: The Impact of Systemic Restricted Choice on Minority Consumers’ Construction of Self,” Journal of Consumer Research, 41 (2), 451–74.
18.
BoneSterling A.ChristensenGlenn L.WilliamsJerome D.AdamsStellaLedererAnnelieseLubinPaul C. (2019), “Shaping Small Business Lending Policy Through Matched-Pair Mystery Shopping,” Journal of Public Policy & Marketing, 38 (3), 391–99.
19.
BoteroIsabel C.Litchfield-MooreShanan R. (2021), “Customer Perceptions About Family Firms and Their Effects on Customer Behaviors,” Journal of Family Business Strategy, 31 (2), 19–35.
20.
BrownTom J.DacinPeter A. (1997), “The Company and the Product: Company Associations and Corporate Consumer Product Responses,” Journal of Marketing, 61 (1), 68–84.
21.
BusseMeghan R.IsraeliAyeletZettelmeyerFlorian (2017), “Repairing the Damage: The Effect of Price Knowledge and Gender on Auto Repair Price Quotes,” Journal of Marketing Research, 54 (1), 75–95.
22.
ChengShirleyWhiteTiffanyChaplinLan (2012), “The Effects of Self-Brand Connections on Responses to Brand Failure: A New Look at the Consumer-Brand Relationship,” Journal of Consumer Psychology, 22 (2), 280–88.
23.
CrenshawKimberlé (2013), “Demarginalizing the Intersection of Race and Sex: A Black Feminist Critique of Antidiscrimination Doctrine, Feminist Theory and Antiracist Politics,” in Feminist Legal Theories. Routledge, 23–51.
24.
DawarNirajPillutlaMadan M. (2000), “Impact of Product-Harm Crises on Brand Equity: The Moderating Role of Consumer Expectations,” Journal of Marketing Research, 37 (2), 215–26.
DoesSerenaMentovichAvital (2016), “Rooting for the Top Dog: How Social Dominance Motives Shape Group Preference in Intergroup Competition,” Journal of Experimental Social Psychology, 62, 24–29.
DunivinZackary OkunYanHarry YaojunInceJelaniRojasFabio (2022), “Black Lives Matter Protests Shift Public Discourse,” Proceedings of the National Academy of Sciences, 119 (10), e2117320119.
29.
EaglyAlice H.MakhijaniMona G.KlonskyBruce G. (1992), “Gender and the Evaluation of Leaders: A Meta-Analysis,” Psychological Bulletin, 111 (1), 3–22.
30.
FairlieRobert W. (2020), “The Impact of Covid-19 on Small Business Owners: Evidence of Early-Stage Losses from the April 2020 Current Population Survey,” National Bureau of Economic Research Working Paper 27309, https://doi.org/10.3386/w27309.
31.
FairlieRobert W.RobbAlicia M (2007), “Why Are Black-Owned Businesses Less Successful Than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital,” Journal of Labor Economics, 25 (2), 289–323.
32.
FerraroRosellinaKirmaniAmnaMatherlyTed (2013), “Look at Me! Look at Me! Conspicuous Brand Usage, Self-Brand Connection, and Dilution,” Journal of Marketing Research, 50 (4), 477–88.
33.
Garcia-MorenoClaudiaHeiseLoriJansenHenrica A.F.M.EllsbergMaryWattsCharlotte (2005), “Violence Against Women,” Science, 310 (5752), 1282–83.
GrierSonya A.PerryVanessa G. (2018), “Dog Parks and Coffee Shops: Faux Diversity and Consumption in Gentrifying Neighborhoods,” Journal of Public Policy & Marketing, 37 (1), 23–38.
37.
GurrieriLaurenGordonRossBarraketJoJoyceAndrewGreenCelia (2018), “Social Marketing and Social Movements: Creating Inclusive Social Change Coalitions,” Journal of Social Marketing, 8 (4), 354–77.
38.
HealeyJoseph F.StepnickAndiO’BrienEileen (2018), Race, Ethnicity, Gender, and Class: The Sociology of Group Conflict and Change. Sage.
39.
HeilmanMadeline E. (2012), “Gender Stereotypes and Workplace Bias,” Research in Organizational Behavior, 32, 113–35.
40.
HeilmanMadeline E.BlockCaryn J.MartellRichard F.SimonMichael C. (1989), “Has Anything Changed? Current Characterizations of Men, Women, and Managers,” Journal of Applied Psychology, 74 (6), 935–42.
41.
HoArnold K.SidaniusJimKteilyNourSheehy-SkeffingtonJenniferPrattoFeliciaHenkelKristin E.FoelsRobStewartAndrew L. (2015), “The Nature of Social Dominance Orientation: Theorizing and Measuring Preferences for Intergroup Inequality Using the New SDO₇ Scale,” Journal of Personality and Social Psychology, 109 (6), 1003–28.
IslamMir RabiulHewstoneMiles (1993), “Intergroup Attributions and Affective Consequences in Majority and Minority Groups,” Journal of Personality and Social Psychology, 64 (6), 936–50.
44.
JaegerBastianSleegersWillem W.A. (2023), “Racial Disparities in the Sharing Economy: Evidence from More Than 100,000 Airbnb Hosts Across 14 Countries,” Journal of the Association for Consumer Research, 8 (1), 33–46.
JostJohn T. (2017), “The Marketplace of Ideology: ‘Elective Affinities’ in Political Psychology and Their Implications for Consumer Behavior,” Journal of Consumer Psychology, 27 (4), 502–20.
47.
JostJohn T.KayAaron C. (2005), “Exposure to Benevolent Sexism and Complementary Gender Stereotypes: Consequences for Specific and Diffuse Forms of System Justification,” Journal of Personality and Social Psychology, 88 (3), 498–509.
48.
JunSunkyuSungJungyeonGentryJames W.McGinnisLee Phillip (2015), “Effects of Underdog (vs. Top Dog) Positioning Advertising,” International Journal of Advertising, 34 (3), 495–514.
49.
KayAaron C.JostJohn T. (2003), “Complementary Justice: Effects of ‘Poor but Happy’ and ‘Poor but Honest’ Stereotype Exemplars on System Justification and Implicit Activation of the Justice Motive,” Journal of Personality and Social Psychology, 85 (5), 823–37.
50.
KhamitovMansurGrégoireYanySuriAnshu (2020), “A Systematic Review of Brand Transgression, Service Failure Recovery and Product-Harm Crisis: Integration and Guiding Insights,” Journal of the Academy of Marketing Science, 48 (3), 519–42.
51.
KimYaeriParkKiwanLeeSeojin (2019), “The Underdog Trap: The Moderating Role of Transgression Type in Forgiving Underdog Brands,” Psychology & Marketing, 36 (1), 28–40.
52.
KirgiosErika L.RaiAneeshChangEdward H.MilkmanKatherine L. (2022), “When Seeking Help, Women and Racial/Ethnic Minorities Benefit from Explicitly Stating Their Identity,” Nature Human Behaviour, 6 (3), 383–91.
53.
KirmaniAmnaHamiltonRebecca W.ThompsonDebora V.LantzyShannon (2017), “Doing Well Versus Doing Good: The Differential Effect of Underdog Positioning on Moral and Competent Service Providers,” Journal of Marketing, 81 (1), 103–17.
54.
KleinJillDawarNiraj (2004), “Corporate Social Responsibility and Consumers’ Attributions and Brand Evaluations in a Product-Harm Crisis,” International Journal of Research in Marketing, 21 (3), 203–17.
55.
KnightJennifer L.HeblMichelle R.FosterJessica B.MannixLaura M. (2003), “Out of Role? Out of Luck: The Influence of Race and Leadership Status on Performance Appraisals,” Journal of Leadership & Organizational Studies, 9 (3), 85–93.
56.
KorschunDanielMartinKelly D.VadakkepattGautham (2020), “Marketing’s Role in Understanding Political Activity,” Journal of Public Policy & Marketing, 39 (4), 378–87.
57.
KulichClaraRyanMichelleHaslamS. Alexander (2007), “Where Is the Romance for Women Leaders? The Effects of Gender on Leadership Attributions and Performance-Based Pay,” Applied Psychology, 56 (4), 582–601.
58.
LuoHongZhangLaurina (2022), “Scandal, Social Movement, and Change: Evidence from #MeToo in Hollywood,” Management Science, 68 (2), 1278–96.
MontgomeryNicole VotolatoCowenAmanda P. (2020), “How Leader Gender Influences External Audience Response to Organizational Failures,” Journal of Personality and Social Psychology, 118 (4), 639–60.
65.
MurrellAudrey J.BangsRalph (2019), “Reducing Disparities for Women and Minority Business in Public Contracting Work: A Call for Social Virtuousness,” Frontiers in Psychology, 10, 1264.
66.
NardiniGiaRank-ChristmanTracyBublitzMelissa G.CrossSamantha N.N.PeracchioLaura A. (2021), “Together We Rise: How Social Movements Succeed,” Journal of Consumer Psychology, 31 (1), 112–45.
OrdabayevaNailyaFernandesDaniel (2018), “Better or Different? How Political Ideology Shapes Preferences for Differentiation in the Social Hierarchy,” Journal of Consumer Research, 45 (2), 227–50.
69.
OuelletJean-François (2007), “Consumer Racism and Its Effects on Domestic Cross-Ethnic Product Purchase: An Empirical Test in the United States, Canada, and France,” Journal of Marketing, 71 (1), 113–28.
70.
PagerDevahShepherdHana (2008), “The Sociology of Discrimination: Racial Discrimination in Employment, Housing, Credit, and Consumer Markets,” Annual Review of Sociology, 34, 181–209.
71.
PahariaNeeruAveryJillKeinanAnat (2014), “Positioning Brands Against Large Competitors to Increase Sales,” Journal of Marketing Research, 51 (6), 647–56.
72.
PahariaNeeruKeinanAnatAveryJillSchorJuliet B. (2011), “The Underdog Effect: The Marketing of Disadvantage and Determination Through Brand Biography,” Journal of Consumer Research, 37 (5), 775–90.
73.
PahariaNeeruVohsKathleen D.DeshpandéRohit (2013), “Sweatshop Labor Is Wrong Unless the Shoes Are Cute: Cognition Can Both Help and Hurt Moral Motivated Reasoning,” Organizational Behavior and Human Decision Processes, 121 (1), 81–88.
74.
PaluckElizabeth LevyGreenDonald P. (2009), “Prejudice Reduction: What Works? A Review and Assessment of Research and Practice,” Annual Review of Psychology, 60 (1), 339–67.
75.
PeñalozaLisaProtheroAndreaMcDonaghPierrePoundersKathrynn (2023), “The Past and Future of Gender Research in Marketing: Paradigms, Stances, and Value-Based Commitments,” Journal of Marketing, 87 (6), 847–68.
76.
PlantE. AshbyDevinePatricia G. (1998), “Internal and External Motivation to Respond Without Prejudice,” Journal of Personality and Social Psychology, 75 (3), 811–32.
77.
PlantE. AshbyDevinePatricia G.PerucheMichelle B. (2010), “Routes to Positive Interracial Interactions: Approaching Egalitarianism or Avoiding Prejudice,” Personality and Social Psychology Bulletin, 36 (9), 1135–47.
78.
PooleSonja MartinGrierSonya A.ThomasKevin D.SobandeFrancescaEkpoAkon E.TorresLez TrujilloAddingtonLynn A.Weekes-LaidlowMelindaHendersonGeraldine Rosa (2021), “Operationalizing Critical Race Theory in the Marketplace,” Journal of Public Policy & Marketing, 40 (2), 126–42.
PowellGary N.ButterfieldD. Anthony (1997), “Effect of Race on Promotions to Top Management in a Federal Department,” Academy of Management Journal, 40 (1), 112–28.
81.
PrattoFeliciaSidaniusJimStallworthLisa M.MalleBertram F. (1994), “Social Dominance Orientation: A Personality Variable Predicting Social and Political Attitudes,” Journal of Personality and Social Psychology, 67 (4), 741–63.
82.
Prevel KatsanisLea (1994), “The Ideology of Political Correctness and Its Effect on Brand Strategy,” Journal of Product & Brand Management, 3 (2), 5–14.
83.
PuzakovaMarinaKwakHyokjinRoceretoJoseph F. (2013), “When Humanizing Brands Goes Wrong: The Detrimental Effect of Brand Anthropomorphization Amid Product Wrongdoings,” Journal of Marketing, 77 (3), 81–100.
84.
RabinowitzJoshua L. (1999), “Go with the Flow or Fight the Power? The Interactive Effects of Social Dominance Orientation and Perceived Injustice on Support for the Status Quo,” Political Psychology, 20 (1), 1–14.
RoehmMichelle L.BradyMichael K. (2007), “Consumer Responses to Performance Failures by High-Equity Brands,” Journal of Consumer Research, 34 (4), 537–45.
87.
SchmidtHolger J.SteenkampPieter (2022), “Beware, an Underdog May Bite: Literature Review and Brand Management Framework in the Context of Underdog Brands,” Journal of Brand Management, 29 (1), 85–110.
88.
SchreerGeorge E.SmithSaundraThomasKirsten (2009), “‘Shopping While Black’: Examining Racial Discrimination in a Retail Setting,” Journal of Applied Social Psychology, 39 (6), 1432–44.
89.
SchrollRolandSchnurrBenediktGrewalDhruv (2018), “Humanizing Products with Handwritten Typefaces,” Journal of Consumer Research, 45 (3), 648–72.
90.
SchumanHowardHardingJohn (1963), “Sympathetic Identification with the Underdog,” Public Opinion Quarterly, 27 (2), 230–41.
91.
ScottMaura L.BoneSterling A.ChristensenGlenn L.LedererAnnelieseMendeMartinChristensenBrandon G.CozacMarina (2023), “Revealing and Mitigating Racial Bias and Discrimination in Financial Services,” Journal of Marketing Research, 61 (4), 598–618.
92.
ShavittSharon (2019), “Diversity and Stigmatized Identity in the Marketplace: Introduction to Research Dialogue,” Journal of Consumer Psychology, 29 (1), 128–29.
SommersSamuel R. (2006), “On Racial Diversity and Group Decision Making: Identifying Multiple Effects of Racial Composition on Jury Deliberations,” Journal of Personality and Social Psychology, 90 (4), 597–612.
98.
SpencerSteven J.SteeleClaude M.QuinnDiane M. (1999), “Stereotype Threat and Women’s Math Performance,” Journal of Experimental Social Psychology, 35 (1), 4–28.
99.
SteeleClaude M.SpencerSteven J.AronsonJoshua (2002), “Contending with Group Image: The Psychology of Stereotype and Social Identity Threat,” in Advances in Experimental Social Psychology, Vol. 34. Elsevier, 379–440.
100.
SwaminathanVanithaPageKaren L.Gürhan-CanliZeynep (2007), “‘My’ Brand or ‘Our’ Brand: The Effects of Brand Relationship Dimensions and Self-Construal on Brand Evaluations,” Journal of Consumer Research, 34 (2), 248–59.
101.
TaxStephen S.BrownStephen W. (1998), “Recovering and Learning from Service Failure,” Sloan Management Review, 40 (1), 75–88.
102.
TaxStephen S.BrownStephen W.ChandrashekaranMurali (1998), “Customer Evaluations of Service Complaint Experiences: Implications for Relationship Marketing,” Journal of Marketing, 62 (April), 60–76.
UduehiEstherSaint ClairJulian K.CrabbeRowena (2024), “Intersectionality in Marketing: A Paradigm for Understanding Understudied Consumers,” Journal of Marketing (published online May 19), https://doi.org/10.1177/00222429241258493.
105.
UlverSofiaLaurellChristofer (2020), “Political Ideology in Consumer Resistance: Analyzing Far-Right Opposition to Multicultural Marketing,” Journal of Public Policy & Marketing, 39 (4), 477–93.
106.
VandelloJoseph A.GoldschmiedNadav P.RichardsDavid A.R. (2007), “The Appeal of the Underdog,” Personality and Social Psychology Bulletin, 33 (12), 1603–16.
107.
Van HielAlainMervieldeIvan (2002), “Explaining Conservative Beliefs and Political Preferences: A Comparison of Social Dominance Orientation and Authoritarianism,” Journal of Applied Social Psychology, 32 (5), 965–76.
108.
WangYangQinMarco ShaojunLuoXuemingKouYu (Eric) (2022), “Frontiers: How Support for Black Lives Matter Impacts Consumer Responses on Social Media,” Marketing Science, 41 (6), 1029–44.
109.
WeberT.J.JoiremanJeffSprottDavid E.HydockChris (2023), “Differential Response to Corporate Political Advocacy and Corporate Social Responsibility: Implications for Political Polarization and Radicalization,” Journal of Public Policy & Marketing, 42 (1), 74–93.
110.
WebsterRussell J.BurnsMason D.PickeringMargotSaucierDonald A. (2014), “The Suppression and Justification of Prejudice as a Function of Political Orientation,” European Journal of Personality, 28 (1), 44–59.
111.
WertenbrochKlausSkieraBernd (2002), “Measuring Consumers’ Willingness to Pay at the Point of Purchase,” Journal of Marketing Research, 39 (2), 228–41.
112.
WootenDavid B.Rank-ChristmanTracy (2022), “The Significance and Meaning of Racial Identity in Consumer Research: A Review and Call for Research,” Consumer Psychology Review, 5 (1), 19–32.
113.
YouYanfenYangXiaojingWangLiliDengXiaoyan (2020), “When and Why Saying ‘Thank You’ Is Better Than Saying ‘Sorry’ in Redressing Service Failures: The Role of Self-Esteem,” Journal of Marketing, 84 (2), 133–50.
114.
ZouLinda X.CheryanSapna (2017), “Two Axes of Subordination: A New Model of Racial Position,” Journal of Personality and Social Psychology, 112 (5), 696–717.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
