A study by a faculty member of the Indian Institute of Management, Lucknow, has found that diversity and inclusion have become a strategic requirement for hospitality brands to effectively serve an increasingly diverse customer base.
The study, published in the Journal of Hospitality Marketing and Management, examines how diversity, equity, and inclusion (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, while the second experiment builds on these findings using a real-world hotel brand, a release from the institute read.
Based on the experiments, the research team from IIM Lucknow, IIM Sambalpur and Lal Bahadur Shastri Institute of Management, Delhi, found that consumers have a favourable opinion of hospitality brands that actively use DEI initiatives in hiring, training, marketing, and customer service.
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, Vishakha Chauhan, assistant professor (marketing), who undertook the study, said, “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.”
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.
