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Racial Awareness is Reshaping Consumer Spending

Published: 2025

Ekin Ok
Assistant Professor

Key Takeaways

  • White guilt—defined as remorse over historical racial injustices and recognition of unearned white privilege—creates a measurable exception to typical ingroup favoritism, with high white guilt consumers demonstrating consistent preference for Black-owned businesses over white-owned alternatives, even when those businesses are more expensive or have lower ratings.
  • The findings provide actionable insights for businesses and marketers: white guilt proves to be a more reliable predictor of consumer behavior toward racial diversity in the marketplace than general political ideology, and can be strategically activated through messaging that highlights racial disparities, enabling more effective segmentation and targeting of consumers likely to support minority-owned businesses.
  • This research advances consumer psychology by demonstrating that white guilt extends beyond support for systemic policies into every day, non-ideological marketplace decisions, documenting how some white consumers now use consumption choices as a form of racial justice activism and revealing the racialization of previously apolitical purchasing behaviors in contemporary American commerce.

Recent social movements have intensified conversations about racial equity in America, prompting some white consumers to reconsider their privileged status in society. While businesses increasingly signal racial diversity through "Black-owned business" labels and diverse marketing materials, little was known about how white consumers' feelings about their own racial identity influence their actual purchasing decisions. This research addresses a critical gap: does white guilt—the sense of remorse some white people feel about historical and ongoing racial injustices—translate from support for abstract policies into concrete marketplace behaviors? Understanding this connection matters for advancing racial equity in commerce and helping businesses navigate an increasingly race-conscious consumer landscape.

The researchers conducted six rigorous studies with over 2,000 white Americans, using real purchase scenarios where participants made consequential choices with actual financial stakes. They both measured existing levels of white guilt and experimentally manipulated it by exposing participants to information about racial disparities. Across diverse contexts—from online shopping to restaurant selection—the findings were remarkably consistent: White consumers with high white guilt consistently preferred Black-owned businesses, even when alternatives were cheaper or had better reviews. Importantly, this effect was specific to white guilt rather than general personality traits like guilt-proneness or even political ideology. The research also revealed that supporting Black-owned businesses helped high white guilt consumers feel more moral, suggesting these choices serve as a form of personal redemption.

This research reveals how racial identity has become a powerful driver of everyday consumer decisions, marking a significant shift in American marketplace behaviour. For Black-owned businesses, which represent only 2.8% of U.S. businesses, the findings offer strategic guidance: Explicitly signaling ownership through labels or messaging can attract support from consumers concerned about racial equity, though this same transparency may deter others. Marketers can use these insights for more effective targeting, recognizing that highlighting racial disparities in communications can activate white guilt and shift preferences. More broadly, the research documents an emerging phenomenon where some consumers treat purchasing decisions as political statements, using their wallets to address racial inequities—transforming routine commerce into a form of activism.