Do Firm Cues Impact Product Perceptions? When Small is Natural

Abstract

Firms of varying size can produce the same product. Do consumers make inferences about products based on firm size? We focus on perceptions of product naturalness and show, in four studies, that products made by smaller firms are perceived to be more natural—whether they are directly experienced (study 1) or seen in ads (study 2). Additionally, we show that the association of firm size and naturalness is held nonconsciously (study 3), and also consciously (study 2); and that it impacts purchase intention (studies 2 and 4). Our research has many implications for firms conveying product naturalness. Importantly, it highlights the need to explore possible associations between firm characteristics and product perceptions.