Customers Prepared to shell out more funds for goods boasting diverse representations in their promotional campaigns.
In a series of groundbreaking studies, researchers Aparna Labroo, Uzma Khan, Saetbyeol Kim, and Suwon Choi have explored the effects of diverse representation in advertising. Their findings suggest that depicting models who represent a wide range of ages, races, genders, and nationalities can have a significant impact on a brand's bottom line.
The researchers discovered that consumers who viewed ads indicating specific product needs, such as boosting volume, also believed that the brand offered greater product variety, though not to the same extent as those who viewed ads representing diversity without specific product focus. Interestingly, people who saw ads featuring gender diversity (both men and women models) did not think the brand offered greater product variety.
However, when participants were told that the cosmetics ad was meant to target makeup artists of all genders, the positive impact of ad diversity reemerged. The research team found that seeing diverse models gave participants an impression of greater product variety.
The studies also found that consumers were willing to pay more for brands showcasing diversity, indicating a potential increase in revenue. This was likely because people tend to instinctively associate certain products with specific demographics, and when this association is challenged by diverse representation, consumers perceive the brand as more innovative and creative.
The effect of diversity in ads is novel and surprising, as the needs of the diverse people represented may not match the consumer's own needs. However, this spontaneous, positive response to diversity in advertising could bring a positive change to advertising and diversity initiatives.
The implications of this research could reach a wide range of industries, from advertising to fundraising. In general, diverse advertising can increase brand loyalty, widen market reach, enhance brand image, improve customer engagement, and contribute to regulatory and social compliance efforts.
While specific details about the economic impact of featuring diverse models in ads were not provided in the research by Labroo, Khan, Kim, and Choi, it is clear that diversity in advertising can have a significant and positive impact on businesses and the economy. For businesses looking to stay competitive and resonate with a broader audience, diverse advertising may be a valuable strategy to consider.
- The researchers' findings suggest that businesses may experience an increase in revenue by showcasing diversity, as consumers are willing to pay more for brands that demonstrate inclusivity in their ads.
- In various industries, including finance, lifestyle, fashion-and-beauty, and beyond, diverse advertising can contribute to regulatory and social compliance efforts, improve customer engagement, enhance brand image, widen market reach, and increase brand loyalty.
