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If you’re a marketer aiming to reach diverse consumers, you might want to think twice before offering discounts on products symbolically linked to stigmatized identities, according to published in the Journal of Marketing Research.

While price promotions are typically seen as a win-win by offering savings for shoppers and boosting sales for companies, a series of eight studies conducted by ¾ÅÐãÖ±²¥ School of Business professor and her co-authors reveals a surprising downside. When companies discount products that are closely associated with stigmatized groups — such as Black Lives Matter water bottles or 2SLGBTQ+-themed merchandise — members of those groups often react negatively, perceiving the discount as a sign of disrespect toward their social group.

“There’s a common assumption that linking products to consumer identities is always appealing, and that discounts are universally appreciated,” says Argo. “But our findings show that, for stigmatized groups, a price cut on an identity-linked product can feel like a devaluation of their group.”

A closer look at the research

The research team conducted experiments with more than 2,000 participants from various stigmatized groups in the U.S., including Asian Americans, Black Americans, Latino Americans and 2SLGBTQ+ individuals. Participants were presented with scenarios in which products symbolizing their group were either discounted or sold at regular price.

Research indicates that stigmatized consumers tend to respond negatively when companies offer discounts on products linked to their identity. These individuals report less favorable attitudes toward such companies, exhibit lower purchase intentions and are more likely to choose a competitor, even if it means passing up a better deal. The primary driver of this negative response is a perceived sense of disrespect toward their social group, rather than concerns about the product’s quality or their personal image.

In contrast, nonstigmatized consumers do not interpret these discounts as disrespectful, underscoring a significant difference in how various groups perceive the same marketing action.

Not all discounts have the same effect

The studies found that the negative reactions disappeared under certain conditions. For instance, if the company offering the discount was perceived as an in-group member — such as a Black-owned business discounting Black-identity products — the backlash was not present. Similarly, when at least one nonstigmatized-identity-linked product was also discounted at the same time, or when nonmonetary promotions like buy one, get one free or free shipping were used instead of price discounts, the negative effect was avoided.

These findings highlight the importance of context and execution in marketing strategies targeted at identity-linked products.

“Our research suggests that marketers need to be especially thoughtful when promoting products linked to stigmatized identities,” says Argo. “A well-intentioned discount can inadvertently send the wrong message.”

Implications for marketers

The findings offer practical guidance for companies seeking to engage with diverse audiences:

• Avoid singling out stigmatized-identity products for discounts.
• Consider nonmonetary promotions or include a mix of products in sales events.
• Be aware of how company identity and perceived group membership can shape consumer reactions.

As companies strive to create more inclusive marketplaces, understanding the nuanced ways that marketing actions are interpreted by different groups is crucial. “A discount is not always just a discount,” says Argo. “For some consumers, it can be a signal about how much their identity is valued — or not — by the brands they encounter.”

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Read ’s full research article at .

This article was co-written using perplexity.ai