Diversity in practice: Investigating how brands’ approaches to diversity impact millennials’ and Gen Z’s brand loyalty

Retail brands have dedicated efforts to meet consumers’ growing demand for diversity in business products and practices. However, gaps persist in understanding when and how to approach diversity, particularly among the most socially conscious consumers, millennials and Gen Z. To establish how a brand can successfully navigate diversity practices within this cohort, this paper analyses how the effects of diversity practices were tested using Burgess et al.’s Brand Approaches to Diversity Typologies (BADTs) as a framework. In a series of experimental studies, it was found that the timing of entry and the depth of diversity practices significantly impact brand loyalty. Specifically, being timely and adopting a holistic approach to diversity yield the most favourable brand loyalty outcomes among this cohort. Guidelines for practitioners are provided on how brands should approach diversity to brand loyalty. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.