IIM Lucknow study highlights DEI’s role in strengthening hospitality brands

NEW DELHI: A study by Indian Institute of Management (IIM) Lucknow faculty member Vishakha Chauhan explores how Diversity, Equity, and Inclusion (DEI) initiatives influence consumer decisions in the hospitality sector. Published in the Journal of Hospitality Marketing and Management, the research highlights the role of DEI strategies in shaping brand perception and customer preferences.

The study, conducted in collaboration with IIM Sambalpur and Lal Bahadur Shastri Institute of Management, Delhi, includes two controlled experiments. The first experiment examined how DEI commitments influenced brand attitudes for a fictional hospitality brand. The second experiment used a real-world hotel brand to build on those findings.

Role of DEI in hospitality

Based on the experiments, the researchers found that consumers respond favorably to hospitality brands that implement DEI initiatives in hiring, training, marketing, and customer service. DEI initiatives also improve brand integrity, which increases consumer perception.

Materialistic customers are less influenced by a hotel’s DEI initiatives compared to socially conscious customers. “These insights highlight the necessity of customised marketing approaches that appeal to different customer segment,” the press release said.

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Transparent communication on DEI initiatives

DEI initiatives are both moral obligations and economic strategies, particularly for younger generations who align with brands that reflect their values. The research provides hospitality leaders with insights to strengthen brand reputation, build consumer trust, and enhance competitiveness.

Speaking about the significance of this research, Vishakha Chauhan, assistant professor, marketing, IIM Lucknow, 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.”

The research paper is co-authored by Vishakha Chauhan, assistant professor, marketing, IIM Lucknow, Aqueeb Sohail Shaik, assistant professor, strategy, IIM Sambalpur, and Mansi Gupta, assistant professor, marketing, Lal Bahadur Shastri Institute of Management, Delhi.