Conspicuous brand usage, defined as attention-getting use of a brand, causes brand dilution under certain conditions. This research examines changes in observers' attitudes toward a brand after seeing a brand user engaged in conspicuous use of the brand. The authors propose that observers infer that a consumer engaged in conspicuous brand usage is driven by an ulterior motive of impression management. When observers have low self-brand connection, they exhibit less favorable attitudes toward both the brand user and the brand. In contrast, observers with high self-brand connection maintain their favorable view of the brand in the face of a conspicuous brand user. Three studies demonstrate the brand dilution effect of conspicuous brand usage.

Purpose The purpose of this paper is to investigate how the effectiveness of systems for ensuring cooperation in online transactions is impacted by a positivity bias in the evaluation of the work that is produced. The presence of this bias can reduce the informativeness of the reputation system and negatively impact its ability to ensure quality. Design/methodology/approach This research combines survey and experimental methods, collecting data from 1,875 Mechanical Turk (MTurk) workers in five studies designed to investigate the informativeness of the MTurk reputation system. Findings The findings demonstrate the presence of a positivity bias in evaluations of workers on MTurk, which leaves them undifferentiated, except at the extremity of the reputation system and by status markers. Research limitations/implications Because MTurk workers self-select tasks, the findings are limited in that they may only be generalizable to those who are interested in research-related work. Further, the tasks used in this research are largely subjective in nature, which may decrease their sensitivity to differences in quality. Practical implications For researchers, the results suggest that requiring 99 per cent approval rates (rather than the previously advised 95 per cent) should be used to identify high-quality workers on MTurk. Originality/value The research provides insights into the design and use of reputation systems and demonstrates how design decisions can exacerbate the effect of naturally occurring biases in evaluations to reduce the utility of these systems.

No abstract

Racial disparities exist in how different peer‐to‐peer (P2P) business activities are treated. Adapting from institutional theory, whiteness theory, and stereotyping research, we find across a series of experiments that P2P activities are rated more negatively and lower in normative legitimacy when their actors are perceived to be Black as opposed to White. Local acceptance and regulative legitimacy increased normative legitimacy ratings for P2P activities in a Black community, but did not erase the normative legitimacy gap. Moreover, we find that popular terms for P2P businesses (“sharing economy” and “side hustle”) have racial associations, influencing perceptions of normative legitimacy. However, we also show that this may potentially be altered by the legitimating action (an advertising campaign) of a major P2P company employing these terms. Our results suggest that policymakers and programs for improving entrepreneurial achievement need to explicitly consider these racial associations and perceived differences in legitimacy.

Individuals often signal group affiliations to others, and the display of such identity signals is frequently rather subtle. While prior work has focused on understanding an individual's choices of subtle versus prominent signals, in this work, we look at the downstream consequences of such choices. Specifically, we explore how the prominence of identity signals may affect one's behavior in intergroup interactions. Drawing from literature on processing fluency, we propose that the use of difficult to process (subtle) identity signals in intergroup interactions leads signalers to experience identity threat, lowering confidence in their identity and leading them to engage in behaviors to recover from this experience. Across three different identity domains (college affiliation, political affiliation, and brand loyalty), we show that when individuals use difficult to process identity signals, they derogate out‐group members in communication and behave less cooperatively in intergroup interactions. We find that these effects depend upon the observability of the signals by out‐group members and only occur for individuals who are highly identified with the in‐group. We also find that the effects are attenuated when behavior towards members of the out‐group is made public. Copyright © 2017 John Wiley & Sons, Ltd.