Stereotypes and NFPs

Consumers perceive Not for Profit organizations as being “warm,” but not particularly competent, according to a new study in the US Journal of Consumer Research.

The research authors say that across three experiments, they found that consumers hold stereotypes, or blanket impressions about Not for Profit and for-profit organisations and that these stereotypes predict crucial marketplace behaviours, such as the likelihood of visiting of a website and willingness to buy a product from the organisation.

The authors, Jennifer Aaker (Stanford University), Kathleen D. Vohs (University of Minnesota), and Cassie Mogilner (University of Pennsylvania) found that people generally view for-profit companies as being competent, but also as being devoid of warmth, which does not lead people to admire them.

In contrast, they found that consumers perceive Not for Profits as being warmer than for-profits, but they also believe they are less competent than for-profits.

Therefore, if consumer stereotypes are not interrupted, people are more likely to buy products from for-profits than Not for Profits.

The research says NFPs can boost public perception by understanding and using tools that most effectively convey competence.

For example, the authors say Not for Profits can utilize sub-branding, endorsements, and sponsored events to avoid the general perception that they are in some way incompetent.

They say the results demonstrate a major difference from findings regarding the warmth and competence perceptions of people.

For more information go to: http://journals.uchicago.edu/jcr