A recent study by IIM Lucknow has highlighted that showcasing diversity and inclusion (D&I) in advertisements is insufficient unless backed by genuine internal processes. The research emphasizes that the hospitality industry, catering to a diverse global clientele, must adopt meaningful Diversity, Equity, and Inclusion (DEI) initiatives to build consumer trust and strengthen brand integrity.
Published in the Journal of Hospitality Marketing and Management in collaboration with IIM Sambalpur and Lal Bahadur Shastri Institute of Management, Delhi, the study found that consumers increasingly favor brands that actively implement DEI practices in hiring, training, marketing, and customer service. With younger generations aligning more with brands reflecting their values, DEI efforts have become not only ethical but also strategic economic imperatives for the hospitality industry.
The Impact of DEI on Consumer Perception
The study, led by Assistant Professor Vishakha Chauhan from IIM Lucknow, examined how DEI initiatives influence brand attitudes and purchase decisions. Using two controlled experiments—one involving a fictitious hospitality brand and the other a real-world hotel brand—the research uncovered that consumers view brands with active DEI policies more favorably.
“Our research provides empirical evidence of the positive impact of DEI practices on consumer perception and brand loyalty,” said Chauhan. “Simply showcasing diversity in advertisements is not enough; hospitality firms must match their messaging with genuine internal processes.”
Actionable Insights for Hospitality Leaders
The study offers actionable insights for hospitality brands to enhance their reputation and competitiveness:
- Transparent Communication: Clearly communicate DEI initiatives and workforce policies to build credibility.
- Authentic Representation: Collaborate with marginalized communities in campaigns and events to ensure authenticity.
- Diversity Training: Implement diversity training programs for staff to improve customer experiences.
- Inclusive Practices: Host events like LGBT Pride Month celebrations in collaboration with represented communities to maintain consumer trust.
Economic Benefits of DEI
According to the research, DEI initiatives not only improve consumer perceptions but also enhance brand integrity, making them effective economic strategies. However, the impact of DEI initiatives varies among consumer groups. Socially conscious customers are more likely to appreciate these efforts, while materialistic customers show less sensitivity to them.
A Call for Genuine Inclusion
The hospitality industry, which serves a highly diverse customer base, must integrate DEI at its core to remain competitive in an evolving marketplace. The research underscores that diversity ads must reflect genuine internal commitments to inclusivity, as misalignment can erode brand credibility.
By embracing meaningful DEI practices, hospitality brands can strengthen their reputation, foster consumer trust, and create a competitive edge in an increasingly values-driven marketplace. This research serves as a roadmap for hospitality leaders seeking to build sustainable, inclusive, and impactful businesses.
