Diversity at the forefront: frontline employee diversity effects on luxury fashion brand equity

Abstract

Purpose This study aims to investigate how and when frontline employee (FLE) diversity influences brand equity in a luxury fashion brand setting. Design/methodology/approach Three experiments test the framework. The first experiment investigates the direct effect of FLE diversity on brand equity, the second explores the mediating mechanism (brand rebelliousness and brand coolness) and the third examines material values as the moderator of these effects. Findings Results show that FLE diversity increases luxury fashion brand equity. A serial mediation mechanism explains this effect: FLE diversity drives perceptions of brand rebelliousness, which in turn increases brand coolness and consequently brand equity. Finally, results show that, for consumers high in material values, the effect of brand rebelliousness on brand coolness is weaker. Research limitations/implications This paper identifies a blind spot in luxury management diversity practices: FLEs. Findings highlight an effective strategy for luxury brands to enhance their brand equity and contribute to a deeper understanding of a dynamic consumer environment. Practical implications Findings suggest that luxury fashion brands must urgently improve their diversity efforts, as consumers value FLE diversity and evaluate such brands more favourably. The findings are particularly relevant to brands aiming to target modern consumers, who place greater value on diversity and social responsibility. Originality/value This study bridges the gap between management and marketing studies on diversity, uncovering a previously overlooked link between FLE diversity and brand equity. Furthermore, this work acknowledges the importance of intersectionality and concurrently tests multiple dimensions of diversity on brand equity.

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