Inferring quality from price: the effect of stereotype threat on price–quality judgments

Abstract

PurposeThis paper aims to examine how a stereotype threat, which entails being aware of a negative stereotype about one’s social group (e.g. gender), affects consumers’ price perceptions.Design/methodology/approachThe authors conducted four studies to examine the effect of a stereotype threat on consumers’ perceptions of a product’s price–quality relationship.FindingsThis study found that being aware of a negative stereotype about one’s social group (i.e. gender here) led consumers to use price more as a quality indicator. This study also determined that reappraisal – an alternative way of coping with stereotype threats – reduced the impact of a stereotype threat and, subsequently, decreased reliance on price to infer quality.Research limitations/implicationsThis research contributes to the consumer decision-making literature by examining stereotype threat effect in in-store product purchasing contexts; provides theoretical contributions to the processing of price information by exploring the role of a stereotype threat in price perceptions and revealing that impairment of consumers’ working memory resources affects price perceptions; adds to the existing stereotype threat literature by investigating the effect of a stereotype threat on systematic versus heuristic information processing; and advances the stress and coping literature by suggesting that consumers adopting a reappraisal strategy cope better with a stereotype threat than when opting for a suppression strategy.Practical implicationsThis research provides important implications for consumers. For example, the findings suggest that consumers who would like to avoid paying more for stereotype-associated products may adopt reappraisal to cope with a stereotype threat. Reappraisal may allow consumers to use fewer cognitive resources when coping with stereotype threats, thus minimizing the possibility that they might overpay for high-priced products.Originality/valueThis research uniquely examines the effect of a stereotype threat on consumers’ price perceptions and the role of reappraisal in this effect.