Limiting Accessibility: How Targeting Consumers with Disabilities Constrains Acceptable Prices for Innovations

People with disabilities constitute 15% of the world’s population with a total disposable income of more than $2.6 trillion. However, few companies offer products tailored to the needs of this segment, making it important to understand how mass-market consumers react to innovations that target people with disabilities. Nine studies and six supplementary studies (twelve preregistered) reveal that innovations targeting consumers with disabilities are subject to comparatively greater scrutiny by mass-market consumers. Specifically, consumers find charging price premiums for innovative products less acceptable when they are targeted at people with disabilities. The aversion to targeting this segment occurs only when firms charge a price premium and persists even when firms provide cost justifications for the relatively higher prices. Drawing on research on disability stereotypes, we identify pity for people with disabilities as a critical driver of these reactions. Variations in pity across disabilities are related to the acceptability of a price premium for adaptive innovations. These findings are suggestive of a novel form of paternalism against consumers with disabilities. Paradoxically, this view may render the marketplace less inclusive for consumers with disabilities, as it could penalize companies that provide more options for this underserved segment.