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.

Craftwashing in the U.S. Beer Industry

“…Other researchers have explored consumer perceptions of "authenticity," and found that craft beer drinkers have negative perceptions of beer produced by big brewers [11] (or even breweries that offer beer styles associated with big brewers [12]). There has been little research, however, on how these opaque patterns of ownership are reflected in "craft" beer selections at retailers.…”

About Us: Authenticating Identity Claims in the Craft Beer Industry

“…However, research finds that there are “perils” in explicitly claiming authentic organizational identities, suggesting that authenticity work is critical to product value in the new market, yet must be subtle and nuanced (Kovács et al., “Perils”). For instance, research integrating authenticity perspectives has explored the craft beer industry and organizational identities in contrast to mass‐production breweries, revealing how oppositional identities can increase product appeal and prevent organizational stigmatization (Barlow et al.; Verhaal et al.). These studies reveal a corresponding point of interest and a need for research from a cultural lens.…”

Corporate social responsibility in a burgeoning industry: a stakeholder analysis

“…In terms of production volumes, all craft breweries in this study can be categorised as small in size, and the large majority as microbreweries. Small craft breweries produce less than six million barrels yearly (Brewers Association, 2016), and microbreweries less than 15,000 barrels yearly (Barlow, Verhaal, and Hoskins, 2016).…”