Market-Stigmatized Groups and the Effectiveness of Stigma Management Strategies: Evidence from Washington’s Marijuana Market
研究大麻市场中,企业采用疏远或展示关联两种污名管理策略的效果,发现策略有效性取决于当地市场污名化群体的集中程度,例如黑人居民比例高的地区展示策略反而降低销量。
Some organizations in stigmatized markets are more successful than others at managing audience perceptions and attracting consumers. Despite extensive research on organizational stigma management, less is known about the conditions under which different strategies drive consumer patronage. This study examines two broad approaches—(1) distancing from the stigmatized market, and (2) displaying associations with the stigmatized market—that operate through opposing mechanisms and offer competing prescriptions for organizations. We consider how group stigma affects dynamics between organizations and consumers to influence the effectiveness of stigma management strategies. We introduce the concept of market-stigmatized groups and predict that the local concentration of these groups moderates the effectiveness of distancing and displaying in generating sales. Examining dispensaries in Washington state’s marijuana market, we find that displaying strategies are associated with lower sales in areas with higher concentrations of Black residents, a market-stigmatized group in this industry, whereas distancing strategies have diverging effects. Our study contributes to stigma research by demonstrating that the effectiveness of stigma management strategies is contingent on the local concentration of market-stigmatized groups, showing how stigmas interact across levels to affect organizational outcomes, and identifying a source of performance heterogeneity in stigmatized markets.