Do brand warmth and brand competence add value to consumers? A stereotyping perspective

Contributing to the literature on brand stereotyping, we draw on the Stereotype Content Model to investigate whether the content of the brand stereotype (in terms of warmth and competence) impacts consumers' perceptions of functional, emotional and social value. In doing so, we explicitly account for the brand's level of perceived globalness (PBG) and localness (PBL) as known influences on both stereotype content and value perceptions. Across two studies, we find that brand warmth consistently and positively impacts functional and emotional value, whereas brand competence enhances functional value. The impact of the stereotyping dimensions on value is subsequently reflected in increased purchase intentions and higher brand ownership. Surprisingly, none of the latter outcomes is affected by social value. Our findings corroborate previous research showing that PBG and PBL are important drivers of brand stereotype content, but also reveal that brand warmth has a stronger impact on behavioral outcomes than brand competence.