Stereotype Threat in the Marketplace: Consumer Anxiety and Purchase Intentions

How do consumers react when they believe that a transaction partner will view them through the lens of a stereotype? We predicted and found that being aware of a negative stereotype about a group to which one belongs (e.g., gender) made consumers sensitive to whether service providers were in-group versus out-group members and lowered purchase intentions when the provider was an out-group member. We observed stereotype threat effects across diverse marketplace set-tings: financial services (experiment 1), automobile repairs (experiment 2), and automobile purchases (experiment 3). Furthermore, we found that reluctance to purchase from out-group (vs. in-group) members was caused by heightened anx-iety. The presence of a soothing scent, as a situational factor to alleviate anxiety, mitigated stereotype threat effects on marketplace decisions. It is a fact of life that most social groups at times areassociated with negative traits, such as incompetence, avarice, or weaknesses (Cuddy, Fiske, and Glick 2007; Wheeler, Jarvis, and Petty 2001). Regrettably, victims of stereotypes tend to be faced with obstacles that hinder their achievement. Consumers are no exception: consider a woman talking to a financial planner or an elderly person wanting computer advice. These consumers may wonder whether they will be viewed by service providers through the lens of a stereotype (e.g., “Women do not understand numbers”: