How emphasising brand ownership by a particular group creates empathy

Their findings reveal that disclosing ownership by people who have suffered disadvantage – such as women or those belonging to particular racial, ethnic or other groups, may lead to more favourable brand evaluations after product failures because consumers empathise with these businesses. 

Uduehi explains that highlighting ownership by a particular group doesn’t just signal diversity – it fosters trust and loyalty. “Our research shows that transparency can create resilience during challenging times,” Uduehi says. 

Among the study findings: 

• Empathy drives consumer forgiveness: Labels emphasising ownership by minorities and disadvantaged groups elicit empathy by framing brands as underdogs that face unique challenges. This narrative encourages consumers to be more forgiving when product failures occur, such as quality issues or delivery delays. 

• Motivation to avoid prejudice: Consumers who are motivated to avoid appearing prejudiced are especially likely to react positively to such ownership labels during product failures. 

• Limits of the effect: The study finds that this forgiveness does not extend to moral failings such as unethical behaviour or discriminatory practices. Consumers are less tolerant of such issues, regardless of ownership. 

“This study underscores the power of empathy in branding,” says Barnes. “However, brands must be mindful of the limits of this effect. Transparency works best when paired with consistent ethical practices.” 

Implications for marketers 

The researchers say findings provide actionable insights for businesses and their marketing teams seeking to differentiate themselves in competitive markets: 

• Strategic use of ownership labels: Brands should consider incorporating descriptions such as ‘Black-owned’ or ‘woman-owned’ into their marketing strategies. These labels can foster emotional connections with consumers and build trust. 

• Navigating product failures: During crises, highlighting ownership by minorities or disadvantaged groups can soften consumer backlash. By framing challenges as part of a broader underdog narrative, businesses can maintain loyalty and trust. 

• Maintaining ethical standards: While these ownership labels can mitigate product-related issues, they do not shield brands from ethical scrutiny. Businesses must prioritise consistent ethical practices to avoid eroding trust. 

“This research provides a win-win for brands and consumers,” notes Barnes. “When businesses embrace inclusivity and transparency, it creates better outcomes for everyone.” 

You can find out more about the study here.