A REVIEW OF THE LITERATURE ON LABELING AND SHOPLIFTING PRECEDES A DESCRIPTION OF THE STUDY. A RANDOM SAMPLE OF 77 STUDENTS WERE ASSIGNED TO FOUR TREATMENT GROUPS, SHOWN VIDEOTAPES OF SIMULATED SHOPLIFTING SITUATIONS, AND QUESTIONED ON THEIR PERCEPTION OF THE ACTOR'S BEHAVIOR. THE SAME SETTING AND ACTRESS WERE USED IN EACH SCENE BUT THE ACTRESS' APPEARANCE AND BEHAVIOR WERE MANIPULATED TO PRESENT A 'HIPPIE' AND A 'STRAIGHT' PERSON AND SHOPLIFTING AND NONSHOPLIFTING BEHAVIORS. DEPENDENT VARIABLES WERE DERIVED FROM RESPONSES TO A QUESTIONNAIRE COMPLETED IMMEDIATELY AFTER THE TAPES WERE SHOWN. STUDENTS WERE QUESTIONED ABOUT THEIR PERCEPTION OF THE INTENTIONS AND INTERNAL DISPOSITIONS OF THE ACTRESS, AND ABOUT THEIR EXPERIENCES AND REACTIONS TO SHOPLIFTING AND THEIR DISPOSITION TO REPORT THE INCIDENT. THE FINDINGS SHOW THAT REACTIONS TO DEVIANT ACTS ARE NOT NECESSARILY UNDIMENSIONAL ESTIMATIONS OF IDENTITY AND THAT THE ATTRIBUTION OF INTERNAL QUALITIES TO AN ACTOR MAY BE SEPARATE FROM IMPUTATIONS OF THE SOCIAL LOCATION. WHEN REACTING TO BEHAVIOR WHICH IS KNOWN TO BE ASSOCIATED WITH SERIOUS SANCTIONS, AN OBSERVER INEVITABLY CONSIDERS THE CONSEQUENCES WHICH HIS (THE OBSERVERS'S) REACTIONS MAY HAVE FOR AN ACTOR. ONLY BY OBTAINING SOME IDEAS OF THE ACTOR'S SOCIAL IDENTITY AND INTENTION CAN THE OBSERVER ASSESS THIS EFFECT. THE IMPLICATIONS OF THESE FINDINGS IN RESEARCHING JURY REACTIONS ARE DISCUSSED. TABLES, ANALYZING THE STUDY DATA, AND BIBLIOGRAPHICAL REFERENCES ARE PROVIDED. (DAG)