From margins to mainstream: The narrative dilemma in scaling social ventures

Research summary As social ventures expand beyond their original marginalized customers, they face demand‐side limitations to scale. This study examines how a common tool for managing strategic change – origin stories – affects non‐marginalized customers’ responses. In a survey‐based field experiment with an Indian feminine hygiene company that initially served rural customers but now targets urban customers, we found that telling origin stories reduced urban customers’ purchase intentions compared to not telling them. This result appears driven by stigma transfer: non‐marginalized customers avoided stigma by not purchasing products associated with stigmatized groups. However, when framed around social responsibility, the origin story increased non‐purchase support (e.g., joining the mailing list). Because it remains unclear whether the increased support is temporary or sustained, social ventures must weigh such gains against potential declines in purchases as they scale. Managerial summary How can social ventures expand beyond marginalized communities? A survey‐based field experiment with an Indian feminine hygiene company reveals that sharing its origin story with urban, non‐marginalized customers reduced purchase intentions. This response was likely due to stigma transfer, where urban customers avoided stigma by distancing themselves from products associated with rural users. However, framing the story around social responsibility increased mailing list subscriptions. An important takeaway for social ventures is that origin stories about marginalized customers may deter mainstream purchases. Since it remains unclear whether non‐purchase engagement reflects symbolic action or sustained interest, social ventures must weigh whether the potential gains meaningfully offset purchase losses when telling origin stories to new customers.