Stereotyping causes a person to miss opportunities to build relationships with certain types of people. It can also lead to aggressive actions toward others. A business sales representative who judges a customer based on appearance or dress may miss a chance to make a sale.
Stereotyping contributes to the formation of cliques in schools and workplaces. People often associate with those similar to them and leave others out of informal social groups. In this case, the stereotyping may eliminate chances for cultural awareness. Stereotyping is also a potential segue into discrimination. For example, a hiring manager who treats a candidate or employee unfairly based on race or gender could bring about a discrimination lawsuit.