Racism remains a prevalent issue across many sectors of society, posing a significant form of social harm within the business ecosystem. While racial stigmatization in marketing has been explored in the context of advertisers, brands, and businesses transmitting negative stereotypes through advertising, biased algorithms in dynamic pricing, targeted marketing of unhealthy products to specific demographics, and underrepresentation of people of color in leadership roles, the role of consumer-driven racial stigmatization in online consumer-to-consumer (C2C) interactions remains significantly understudied. This paper addresses this gap by investigating how racial bias manifests in online C2C exchanges, specifically focusing on the impact of reviewer race on the perceived credibility of their reviews and subsequent information adoption by other consumers. The increasing empowerment of consumers, amplified by social technology, online communities, peer-to-peer platforms, and social media, necessitates a deeper understanding of racial bias within these largely unregulated C2C interactions. The implications extend beyond individual concerns to encompass structural issues affecting societal norms. Recent high-profile instances of public backlash against brands for their ill-considered use of racial signifiers further underscore the urgency of addressing this issue. This study uses Critical Race Theory (CRT) as a framework to examine this consumer-driven racial stigmatization within C2C interactions.

Existing literature highlights the various forms of marketplace racism, including underrepresentation of people of color in advertising, discriminatory marketplace practices, lack of diversity in leadership positions, and biased portrayals of people of color in advertising. Studies have documented ingrained racial biases in the sharing economy, algorithmic biases in search results, and widespread racial bias and discrimination among consumers on various digital platforms. However, the specific role of racial bias in C2C online product reviews, while significant, has been under-researched. This study builds upon this existing body of work by focusing on how the racial profile of online reviewers affects the perception and adoption of their reviews. It draws upon research on source credibility and information adoption, highlighting how review valence (positive or negative) and peripheral cues (such as profile pictures) influence consumer behavior. The theoretical foundation for this study is Critical Race Theory (CRT), which provides a framework for understanding how race operates as a social construct influencing perceptions and judgments. CRT illuminates how ingrained racial biases in society are enacted and perpetuated on C2C platforms, exacerbating the issue due to the lack of regulation in this domain.

The study employs two experimental studies to investigate the research hypotheses. Study 1 utilizes a 2 (Valence: Positive and Negative) × 2 (Profile Avatars: Identified [Black race], Unidentified [no profile photo]) between-subjects factorial design. The stimulus material consists of mock TripAdvisor hotel reviews, with the manipulation focusing on the presence and race of the reviewer's profile picture. The content of the reviews remains consistent across conditions to isolate the effect of race. A sample of 200 participants with diverse racial backgrounds was recruited via Prolific, a specialized online panel provider. Dependent variables, source credibility and information adoption, were measured using adapted scales. Control variables included attitudes toward checking online reviews and perceived TripAdvisor credibility. Manipulation checks ensured the effectiveness of the experimental manipulations. Study 2 expands upon Study 1 with a 2 (Valence: Positive and Negative) × 3 (Profile Avatars: White, Black, and Asian) between-subjects factorial design. Similar procedures were followed, including the use of mock TripAdvisor reviews, a diverse sample (300 participants) recruited via Prolific, manipulation checks, and the measurement of dependent and control variables. Pre-tests were conducted to ensure the equivalence of profile pictures in terms of facial expressions, and only race was the differentiating factor. Statistical analyses, including MANOVA, were used to analyze the data in both studies.

Study 1 revealed a significant interaction effect between review valence and the presence/absence of a Black reviewer's profile picture on perceived source credibility and information adoption. Positive reviews from Black reviewers were perceived more favorably than negative reviews, contrasting with reviews without profile pictures. Information adoption patterns showed less favorable adoption of both positive and negative reviews from Black reviewers compared to those without identifiable profile pictures. Study 2 extended these findings by comparing the impact of White, Black, and Asian reviewers' race on source credibility and information adoption. Across both positive and negative reviews, White reviewers consistently achieved higher perceived credibility and information adoption than Black and Asian reviewers. Black reviewers showed higher credibility only when providing positive reviews, suggesting a possible expectancy violation effect. Information adoption was consistently lower for Black reviewers, particularly for negative reviews. The results supported the hypotheses, confirming the moderating role of reviewer race on perceived source credibility and information adoption, and indicating the prevalence of White supremacy within this online marketplace.

The findings of this study provide compelling evidence of consumer-driven racial stigmatization in online C2C interactions. The results challenge the traditional understanding of marketplace racism as merely direct aggression or indirect microaggressions. This research highlights a more subtle and insidious form of racism where consumers unconsciously filter information based on the perceived epistemic status of reviewers based on their race. This epistemic bias shapes how consumers evaluate information, leading to marketplace inequalities. The study demonstrates that race operates not only as a social and psychological factor but also as a deeply embedded philosophical one influencing how consumers acquire, process, and justify knowledge. The observed expectancy violation effect, where positive reviews from Black reviewers were perceived more favorably, further illustrates the complexity of racial biases and the influence of perceived incongruity with established stereotypes.

This study makes significant contributions to the understanding of consumer-driven racial stigmatization within online C2C interactions. It reveals the subtle yet powerful impact of racial cues on perceived source credibility and information adoption. The findings underscore the need for consumer education to address unconscious biases and promote equitable marketplace practices. Future research could explore the impact of other reviewer characteristics, investigate the influence of platform algorithms, and test different technological interventions to mitigate racial bias in online reviews.

The study's limitations include the use of mock TripAdvisor reviews, which may not perfectly replicate real-world interactions. The use of only male avatars with neutral facial expressions also restricts the generalizability of the findings. Future research could address these limitations by using real reviews, manipulating additional factors (e.g., age, gender, facial expression), and conducting longitudinal studies to assess changes in bias over time.