New Delhi: Simply showing diversity and inclusion in advertisements is insufficient for hospitality brands and should be matched with genuine internal processes, according to a research led by Indian Institute of Management (IIM), Lucknow.
With consumers, especially the younger generations, aligning more with brands that reflect their values, diversity initiatives are not just moral obligations but also effective economic strategies, it said.
About The Research
The research noted that consumers have a favourable opinion of hospitality brands that actively use diversity and inclusion initiatives in hiring, training, marketing and customer service.
Published in the Journal of Hospitality Marketing and Management, the research in collaboration with IIM Sambalpur and Lal Bahadur Shastri Institute of Management, Delhi, emphasised that encouraging diversity and inclusion has now become a strategic requirement for hospitality brands to effectively serve an increasingly diverse customer base.
According to Vishakha Chauhan, Assistant Professor, Marketing, IIM Lucknow, the study examined how Diversity, Equity and Inclusion (DEI) initiatives affect consumer sentiments, brand integrity and purchase decisions through two controlled experiments.
“The hospitality and tourism sector is exposed to a diverse segment of consumers globally, 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,” Chauhan told PTI.
“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,” she added.
Chauhan explained that the first experiment examined 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. Based on the experiments, the team found that consumers have a favourable opinion of hospitality brands that actively use DEI initiatives in hiring, training, marketing and customer service,” said Chauhan.
“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,” she added.
The research flagged the need for 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.
“For example, hospitality brands hosting LGBT Pride Month celebrations should collaborate with the represented communities to maintain credibility and consumer trust. 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,” Chauhan said.
“This research provides hospitality leaders with actionable insights to strengthen brand reputation, build consumer trust and enhance competitiveness in an increasingly diverse marketplace,” she added.
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