An IIM Lucknow research has found that consumers have a favourable opinion of hospitality brands that include Diversity, Equity, and Inclusion (DEI) initiatives. Indian Institute of Management Lucknow faculty Prof. Vishakha Chauhan has found that encouraging diversity and inclusion has now become a strategic requirement for hospitality brands to effectively serve an increasingly diverse customer base.
Published in the Journal of Hospitality Marketing and Management, the study examined how DEI initiatives affect consumer sentiments, brand integrity, and purchase decisions through two controlled experiments.
- The first experiment examines how DEI commitments influence brand attitudes in the context of a fictitious hospitality brand.
- The second experiment builds on these findings using a real-world hotel brand.
The research team was comprised of the researchers from IIM Lucknow, IIM Sambalpur and Lal Bahadur Shastri Institute of Management (LBSIM), New Delhi. Additionally, DEI initiatives also influence brand integrity in a positive way, which enhances consumer perception. Also, compared to socially conscious customers, materialistic customers are less impacted by a hotel’s DEI initiatives. These insights highlight the necessity of customised marketing approaches that appeal to different customer segments.
Speaking about the significance of this research, Dr. Vishakha Chauhan, Assistant Professor, Marketing, IIM Lucknow, said, “The hospitality and tourism sector is exposed to a diverse segment of consumersglobally; hence it is extremely crucial for this industry to adopt diversity, equity and inclusion practices. Our research presents empirical evidence of the positive impact of these practices on how consumers perceive and choose a hospitality brand”
The study underscores that it is important for the firms to match their advertisements with genuine internal processes, as simply showcasing diversity in advertisements is insufficient. Transparent communication regarding diversity and inclusion initiatives, workforce policies that encourage genuine inclusivity, diversity training for staff to enhance customer experience, and authentic representation of marginalised communities in campaigns and events are all examples of effective DEI techniques. For example, hospitality brands hosting LGBTQ+ Pride Month celebrations should collaborate with the represented communities to maintain credibility and consumer trust.
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With consumers, especially younger generations, aligning more with brands that reflect their values, DEI initiatives are not just moral obligations but also effective economic strategies. This research provides hospitality leaders with actionable insights to strengthen brand reputation, build consumer trust, and enhance competitiveness in an increasingly diverse marketplace.
Along with Dr. Vishakha Chauhan from IIM Lucknow, the research paper was co-authored by, Dr. Aqueeb Sohail Shaik, Assistant Professor, Strategy, IIM Sambalpur, and Dr. Mansi Gupta, Assistant Professor, Marketing, Lal Bahadur Shastri Institute of Management, New Delhi.
