Recent research has shown that labels stating “Black owned” on cannabis can increase engagement with brands from white consumers. They do not, however, tend to get extra attention from Blacks.
According to the study published in the Journal of Consumer Research this month, the results show that different respondents have “expertise stereotypes”.
Chethana Adchar, lead author of the study and a researcher, explained that while “Black ownership is a sign of credibility for consumers outside the group, stigma could suppress identification within the group.” The findings are critical and raise questions as to whether only equity policies can ensure the success of Black entrepreneurs within the drug industry.
Achar, professor of Northwestern University’s Kellogg School of Management and founder of California-based marketing consulting, wrote the paper in collaboration with University of Washington professors of business.
This research was divided into four substudies. The research consisted of four separate sub-studies. These included a survey of Black professionals in the drug industry to determine their expectations about “Black owned” labels. It also measured people’s expertise stereotypes regarding Black and woman entrepreneurs.
Among the findings, the team found that “‘Black-owned’ labeling increased Black participants’ intentions to consume candy, but not cannabis,” adding that “the pattern reversed for White participants such that ‘Black-owned’ labeling increased their intentions only for cannabis.”
The report states that “while the out-group’s response conforms to stereotypes of expertise,” “in-group’s support doesn’t extend to stigmatized categories.”
According to a report pre-print provided by MEDCAN24, the results showed that both Black participants and White participants perceived Black entrepreneurs as “stereotypical cannabis experts”. Black participants showed no stereotypes of expertise for Black entrepreneurs in psychedelics. White participants, however, thought that Black Entrepreneurs were experts.
It continues: “Stylistics do not also vary systematically by gender of participants, their support for legalizing drugs, or their political ideology.” These findings show that stereotypes of domain-specific knowledge are perceived by consumers and they tend to be similar.
Separate research on psychedelic ads on Facebook found that an “owned by Blacks” label led to a 21% increase in clickthrough rate compared to the ad not bearing this label.
The click-through rates were reduced by 15% when the “woman-owned” tag was added.
This study said that the findings “promote the discourse around ownership labels, and give insight into the nuanced reactions of consumers to this product category.”
Authors wrote in the preprint that a possible concern “with relatively uncommon ad treatments, such as an ‘x-owned’ label, is that responses may be driven by the novelty of ownership labeling.”
The researchers added that “the positive effects observed with Black-owned labels are unlikely to be explained by novelty alone.”
According to the research team, stereotypes can have benefits and disadvantages.
“Our view is that recognizing the dual nature of stereotypes—both their problematic aspects and their potential utility in specific contexts—provides a more comprehensive understanding of their impact. While ‘Black-owned’ labeling on drugs can enhance consumer perceptions of product quality by leveraging expertise stereotypes, this phenomenon also carries significant risks. Stereotypes that link Black people with drugs can inadvertently reinforce harmful associations and further entrench stigmatizing beliefs.
The report states that further study should be done to “critically examine these implications, by investigating how expert stereotypes in stigmatized areas can have detrimental effects.”
It also admits it didn’t consider how the legalization of drug “may lead to positive associations over time with drugs.”
It says: “Documenting shifting attitudes toward drugs is beyond the scope this research. However, it’s important to note the change in social attitudes could change the mechanisms that are documented here.” “For example, if being associated with cannabis were seen as culture-forward, rather than stigmatizing, a positive effect of ‘Black-owned’ labeling may be expected among Black participants.”
In terms of other consumer behaviour findings, an online survey done ahead 4/20 weekend revealed that three out four cannabis customers support the promotion by non-marijuana brands that are aligned with the festivities.
While there are typically deals and marketing stunts within the state-legal cannabis industry around 4/20, a growing number of companies that aren’t directly related to marijuana—from dog toy makers to fast food chains—have also seized the opportunity to play into cannabis culture.
A separate survey, released earlier this month, found that half of U.S. marijuana consumers say they expect to use more cannabis under the Trump administration than they have before.
The findings seem to comport with another recent poll that showed cannabis consumers self-reporting higher levels of stress since Trump was inaugurated compared to the overall population.
Relatedly, another poll from February found that nearly 7 in 10 American marijuana consumers say they plan to spend either more on cannabis or about the same amount in 2025 compared to last year.
NuggMD also recently released a survey that found two out of three marijuana consumers say they’ve had to make the decision to spend less money on cannabis because of broader inflation in the economy.
Meanwhile, another poll from January found that more than half of marijuana consumers say they drink less alcohol, or none at all, after using cannabis.
New York Marijuana Regulators Launch ‘Higher Education’ Campaign Ahead Of 4/20 To Help Adults Make ‘Safer And Informed Decisions’
Side Pocket Images. Photo by Chris Wallis.