The Role of Race in Consumer Behavior and Inclusive Markets  [PODCAST]

Despite the headlines, rollbacks, and legal battles, the conversation around race has never been more crucial for marketers and businesses. While diversity and inclusion (D&I) often dominate discussions, doing so serves only as a distraction from the broader concerns surrounding the racial dynamics embedded in our society. The issues of race aren’t simply about diversity. They are structural and historical and are tethered to the fabric of consumer behavior.

Race has been a determining factor in shaping how consumers experience various markets, from grocery stores to hospitals. It’s not enough for companies to aim for a “diverse” customer base. They must understand the unique racial dynamics at play. Without acknowledging the social and historical factors behind these dynamics, marketing strategies fall flat and fail to resonate with the very consumers they aim to engage.

However, addressing race in marketing requires deeper engagement with communities, not just performative gestures. Companies often fall into the trap of “woke-washing,” offering initiatives that sound good but lack authentic connection. Consumers, especially those from marginalized groups, can quickly see through these disingenuous efforts. This can damage the trust businesses work hard to build, which is crucial for lasting brand loyalty. A meaningful, long-term focus on racial equity, in both action and strategy, is essential for companies to succeed in this increasingly diverse market.

The latest generation of marketers is entering the workforce with a heightened awareness of these issues, but they face significant challenges when discussing race within a business context. Learning to address these issues with sensitivity and data-backed insights will ensure that brands not only avoid perpetuating harmful stereotypes but also foster more genuine, inclusive relationships with their audiences.

In this episode of The New Mainstream podcast, Dr. Sonya A. Grier, Kogod Eminent Scholar Chair in Marketing at the Kogod School of Business at American University, examines how race influences consumer behavior and why businesses must go beyond diversity to create inclusive marketplaces.