Diversity Of Consumers And Their Behaviour

In order to compete in the market, the idea of diversity is one component of consumer psychology that has drawn more and more attention in the past. Marketers and researchers have looked at diversity through the prism of race and ethnicity to understand better how consumers, from various racial and ethnic origins, behave. However, diversity is a broad notion encompassing much more than color and ethnicity.

A greater understanding of the need to go beyond conventional notions of diversity and take a wider variety of elements that affect customer behavior. Into accounts that recently emerged are age, gender, sexual orientation, socioeconomic level, and cultural background; these are a few examples of these elements in businesses and marketers. This must now be negotiated as a market becomes more complex and diversified, which has significant ramifications.

Understanding Diversity

It is vital to define "diversity" before we can address future research on diversity issues in consumer psychology. Diversity is the term used to describe the variations between people and groups, including socioeconomic level, gender, age, race, ethnicity, and sexual orientation. Due to the possibility that people from diverse origins have varied wants, values, and interests, these disparities can substantially impact consumer behavior.

Understanding Diversity in Consumer Psychology

Diversity in consumer psychology refers to the range of individual differences among consumers. These differences include age, gender, sexual orientation, religion, socioeconomic status, disability, and personality traits. These differences influence consumers' preferences, values, and attitudes toward products and services. For instance, a consumer's personality traits can affect their buying decisions, as some individuals may be more impulsive or risk-taking than others.

Why Diversity Matters in Consumer Psychology?

Diversity is essential in consumer psychology because it helps companies create products and services that cater to a broader range of consumers. When companies understand their customers' diverse needs and preferences, they can create products and services that resonate with them. This, in turn, can lead to increased customer loyalty, brand reputation, and revenue. Additionally, diversity in consumer psychology helps eliminate biases and stereotypes in marketing and advertising. By considering different dimensions of diversity, companies can create more inclusive marketing campaigns that resonate with a broader audience.

Moving Beyond Race and Ethnicity

While race and ethnicity are crucial aspects of diversity, it is essential to move beyond them and consider other dimensions of diversity that impact consumer behaviour. One critical dimension of diversity is age. Age influences consumers' preferences and buying decisions. For instance, younger consumers prioritize convenience and price, while older consumers prioritize quality and durability.

Understanding these differences in age preferences can help companies create products and services that cater to different age groups. Another critical dimension of diversity is gender. Gender influences consumers' preferences and attitudes toward products and services. For instance, women tend to value personal relationships and customer service more than men. Understanding these gender differences can help companies create marketing campaigns that resonate with their target audience.

Socioeconomic status is another crucial dimension of diversity. Consumers from different socioeconomic backgrounds have different values and preferences when purchasing products and services. For instance, consumers from lower socioeconomic backgrounds may prioritize affordability, while those from higher socioeconomic backgrounds may prioritize luxury and status. Understanding these differences can help companies create products and services that cater to different socioeconomic groups. Religion is also a crucial dimension of diversity that impacts consumer behavior.

Consumers from different religious backgrounds may have different values and beliefs influencing their purchasing decisions. For instance, consumers who follow certain religions may only purchase products that align with their religious beliefs, such as halal or kosher. Understanding these religious differences can help companies create products and services that cater to different religious groups.

Finally, disability is a crucial dimension of diversity that impacts consumer behaviour. Consumers with disabilities have different needs and preferences regarding products and services. For instance, consumers with visual impairments may require products with larger fonts, while those with mobility impairments may require more accessible grip products. Understanding these differences can help companies create products and services that cater to different disabilities.

Consumer Perspective on Diversity

Consumers also value diversity in the workplace and the brands they support. They want to see companies that prioritize diversity and inclusion in their hiring practices and work culture. Consumers want to feel they support a brand that aligns with their values and beliefs. A survey conducted by Accenture found that 41% of consumers have switched brands because of a lack of diversity and inclusivity in their advertising. This shows that consumers pay attention to how companies represent diversity in their marketing campaigns and are willing to act based on those representations.

Additionally, consumers appreciate companies that actively support diversity and inclusivity initiatives. For instance, a company that donates to organizations that support underrepresented communities or hires a diverse group of employees may be more attractive to consumers. This shows that the company is not only talking about diversity but actively taking steps to support it. Inclusivity is also important to consumers. Consumers want to see products and services that are inclusive of all individuals, regardless of their background or identity. For instance, a makeup brand that offers a wide range of shades for different skin tones is more likely to appeal to a diverse audience than a brand with limited shade options.

Targeting Processes of Diverse Consumers

Several consumer behavior and social psychology studies study how target marketing works among majority and minority populations. This study unequivocally demonstrates that three major processes create sound target-marketing effects, providing various positive results for advertisers: identification, targetedness, and internalization.


The initial research on target-marketing processes and impacts discovered that identification is a critical mechanism through which people interact with tailored adverts. Identification, also known as homophily identification, happens when a target viewer thinks himself to be similar to a figure shown in an advertisement, primarily owing to shared physical appearance or membership in a minority ethnoracial group. Such similarity causes the viewer to adopt the message conveyed in the ad (for example, that the product is appropriate for him) through a process known as identification, in which the viewer infers that the similar source is similar to himself and is thus persuaded by the message the source espouses in the absence of other information. Persuasion and attitude change induced by identification processes are less durable and more quickly adjusted than persuasion and attitude change caused by more effortful or meaningful processes because the relationship between the viewer and the source is relatively shallow.


Targetedness happens when a targeted viewer believes she is in the desired target market of an advertisement. Feeling targeted—and even wooed—by an advertiser leads to a favorable attitude towards the ad, its message, and the product it promotes. Individuals in consumer cultures have extensive persuasive expertise, which makes them cautious of deceptive or manipulative targeting techniques. They also enjoy the idea that they are valuable enough to a company to be the focus of marketing. People enjoy the ad, product, and brand when they believe their attention and consumption dollars are valued authentically or value-creating. Source signals that tend to promote identification among distinct minorities (but less so among nondistinctive majorities) also function to create targetedness among nondistinctive majorities (but less so among distinctive minorities).


Internalization happens when a targeted viewer identifies with a character in an advertisement that goes beyond essential physical likeness and perceives that he shares the character's values and ideas. By developing a stronger attachment to the character, the viewer grows to believe (rather than accept or share) the positive message the character promotes: the character's belief becomes the viewer's own belief. When this occurs, persuasion and attitude modification are more steady and long-lasting than when other, more surface methods are used. Advertisers must supplement comparable ad sources with extra non-source signals that reinforce why the ad character believes in the product and why that character should be trusted in order to generate internalization. These cues may include features that reinforce shared values connected to the product's selection or usage (for example, evidence that the character and the customer are excellent parents, effective employees, or gentler people because they pick and use the product).

Communication in Diversity

Customers often rely on messaging to connect with businesses and brands. These approaches and messaging tell customers what they may expect from the brand and who should buy it. These messages affect the audience's understanding of the message's two distinct creative and copy components. They may even function as primes to help make any one of the multidimensional identities more conspicuous. Even though every marketer hopes their message will reach its intended audience and resonate with its intended purpose, mistakes and inconsistencies might occur when tailoring communications to specific demographics.


In conclusion, diversity is an essential aspect of consumer psychology. While race and ethnicity are crucial dimensions of diversity, it is essential to move beyond them and consider other dimensions that impact consumer behaviour. Age, gender, socioeconomic status, religion, and disability are all critical dimensions of diversity that influence consumers' preferences and attitudes toward products and services.

Companies that prioritize diversity and inclusivity in their marketing campaigns, hiring practices, and work culture are more likely to resonate with a broader range of consumers. Companies can create products and services catering to a diverse audience by understanding their customers' unique needs and preferences. This can lead to increased customer loyalty, brand reputation, and revenue.

Updated on: 30-Mar-2023

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