Guilty by Association: Product-Level Category Stigma and Audience Expectations in the U.S. Craft Beer Industry

Abstract

While researchers have been increasingly interested in the notion of category stigma, they have largely focused on stigmatized industry categories. Because products serve as a key interface between producers and consumers, we suggest that product categories should play a prominent role in the stigmatization process. Product category stigma occurs when a product category is seen as violating the expectations of its audience members. We argue that when an organization offers a product from a stigmatized category, it is subject to lower evaluations and higher penalties from the stigmatizing audience, regardless of its true underlying quality. Further, when an organization is perceived as increasing its engagement in a stigmatized category, the lower evaluations transfer to the organization’s other products. Finally, we argue that an organization’s reputation for quality actually amplifies this stigma penalty. We find support for our hypotheses in a sample of online reviews for the U.S. craft brewing industry.