Customers Like Diversity From Brands − But Can Smell Hypocrisy A Mile Away

(MENAFN- The Conversation) Companies are increasingly highlighting their support for diversity, but that can backfire if consumers sense tokenism, a recent analysis from my team found.

I'm an assistant professor of marketing who specializes in digital platforms and consumer behavior. My recent research focuses on DEI initiatives by brands on social media. I'm specifically interested in how brands use influencers and minority representation.

An influencer is someone who has built a large following on social media and can affect the opinions or behaviors of their audience. Influencer marketing is when brands partner with these people to promote their products or services to the influencers' online followers.

For an example of influencer marketing, consider this post from the influencer Thamarr Guerrier promoting Old Navy:

Influencer marketing has become one of the main channels for brands and consumers to interact, and minority representation among influencers is one way a company can display its commitment to DEI.

To understand how consumers have been responding to this trend, my colleagues Amy Pei and Keran Zhao and I collected data from the platform X, formerly known as Twitter. Our unique dataset included sponsored content from about 150 brands between 2018 and 2022, as well as details about influencers and reactions from consumers.

We found that brands with either very low or very high levels of minority representation among influencers experienced higher consumer engagement. Meanwhile, brands with moderate levels of minority representation saw a dip in engagement. These effects were particularly pronounced for large companies and those that demonstrated a prior vocal commitment to DEI initiatives.

In other words, we found a U-shaped relationship: Low levels are accepted, intermediate levels may backfire, and high levels are well received. We believe this may stem from consumer perceptions of tokenism at intermediate levels.

In contrast, we found that high minority representation convinces consumers of a brand's genuine commitment and effort.

When brands showcase their support for diversity initiatives on social media, it doesn't always win over consumers. In fact, DEI policies have been a source of controversy for many brands, including Chick-fil-A , Disney and Bud Light .

Since DEI initiatives from brands often provoke mixed reactions from consumers, it's important to understand why. Our research offers a clue.

DEI is a sensitive issue, and consumers value genuine commitment. Our work suggests that brands – especially larger ones – should avoid taking moderate stances and instead adopt a clear position.

We also found that customers had stronger reactions to brands' diversity efforts when those brands had previously expressed strong support for DEI. That suggests brands should be cautious about excessive public signaling if they don't plan to back it up with action.

More research is needed to understand how consumers respond to diversity messaging from brands. For example, previous work has shown that consumer boycotts are often short-lived . But the Bud Light boycott, sparked by the use of a trans influencer to promote the brand, lasted for eight months .

Several things could explain the discrepancy, including political polarization among Bud Light's consumer base and the fact that there are many light beers on the market.

Another key factor appears to have been the visibility of consumption: People often drink beer in social settings, which allowed boycotting consumers to publicly signal their stance, further strengthening the movement. These and other factors warrant more investigation.

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