Brands risk losing loyal customers when diversity initiatives feel irrelevant or inauthentic to their customer base.
The research, by Miriam McGowan, Assistant Professor of Marketing at Durham University Business School, in collaboration with Louise Hassan (Associate Professor of Marketing at Birmingham Business School) and Edward Shiu (Professor in Marketing at Bangor Business School), explores when and how diversity campaigns unintentionally provoke customer backlash.
Through ten experimental studies, the researchers examined various types of diversity initiatives - differing in duration and target groups - to determine their impact on customer loyalty. They identified that long-term initiatives aimed at groups with whom existing customers dissociate trigger negative reactions such as brand avoidance. These reactions stem from customers perceiving the initiatives as threats to their identity and as betrayals by the brand.
Strategies like using sub-brands, allowing product customisation, or clearly communicating genuine social commitments - rather than jumping on the bandwagon - help brands support diversity while keeping loyal customers engaged.
“As brands respond to calls for greater diversity, they must carefully manage customer perceptions to avoid alienating their existing customer base,” says Dr McGowan. “Not every awareness day fits every brand—but for companies in sectors like beauty, fashion, or lifestyle supporting Pride Month or International Women’s Day, for instance can reflect customer values and show authentic commitment. It’s not just about showing up, but showing up meaningfully.”
To minimise backlash, the researchers say that brands should tailor diversity strategies to their customer relationship type - whether based on value exchange or emotional connection.
The researchers emphasise that although long-term initiatives have greater potential for meaningful change, they also carry higher risks. Employing strategic measures such as sub-branding or product customisation can help mitigate these risks, especially when customer preferences are unknown or mixed.
The research was published in the Journal of the Academy of Marketing Science.
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