How Do Consumer Stereotypes Affect Social Enterprises and Profit-making Companies? A Study of Social Enterprises Stereotypes Across Five Industries in Hong Kong

This study examined the effect of perceived warmth and competence on social enterprises (SEs). Previous research has shown that consumers perceive non-profit organizations as warm rather than competent, as opposed to profit-making companies (PMCs). In particular, the perceived warmth of a non-profit organization was negatively correlated with purchase intent (Aaker, Vohs, & Mogilner, 2010). Despite this, several unanswered questions remain, including, “Do consumers perceive social enterprises and non-profit organizations the same way as the non-profit organization?” “Are consumers less likely to purchase from social enterprises they perceive as warm?” Two experiments demonstrated that consumers perceived social enterprises as warmer than profit-making companies. Interestingly, social enterprises in the healthcare, fitness, and transportation sectors demonstrated higher levels of perceived warmth and competence than the others (Experiment 1). Moreover, Experiment 2 showed consumers perceive social enterprises as warmer and equally competent as profit-making companies. Consumers’ purchase intention increased when they perceived a restaurant as a social enterprise rather than a profit-making company. These companies can thus use the perceptions of warmth and competence to position themselves in the market.