Raising the Rainbow Flag: Impact of LGBTQ+ Safety Cues on Service Provider Selection

In today's service economy, clients increasingly select service providers (SPs) through digital platforms that highlight server attributes and personal identifiers, including LGBTQ+ safety cues. We examine how the presence of such cues impacts clients' selection of SPs. We conducted a large-scale controlled experiment across different SP categories. Participants ranked server attributes by desirability and then made selections among hypothetical SPs, some of whom displayed a rainbow flag—a widely recognized LGBTQ+ safety cue. We find that, on average, SPs displaying the flag were 16.4% to 22.3% less likely to be selected. However, this aggregate effect masks important heterogeneity: LGBTQ+ participants favored SPs displaying the flag; whereas, the flag’s negative effect was more pronounced for men vs. women.  In terms of age, younger participants perceive the flag more positively; however, this is likely due to higher LGBTQ+ identification among them. Moreover, individuals with higher awareness of LGBTQ+ concepts responded more favorably to the flag. Importantly, when participants were informed that the flag signaled inclusivity and safe-space training, the negative effect on SP selection disappeared.  Our findings underscore the trade-offs involved in signaling LGBTQ+ inclusivity within service settings. Although displaying such safety cues can benefit LGBTQ+ clients, it can deter some non-LGBTQ+ clients, particularly those who are older, male, or less familiar with LGBTQ+ concepts. Hence, managers should carefully consider their client mix when deciding whether to implement such cues. Interestingly, providing clarifying information on and contextualizing inclusivity signals can mitigate their potential backlash, driven by a misunderstanding of their meaning.