The objective of this project explores transgender and non-binary consumers’ perception of the Rainbow Tick brand and how companies being affiliated with it affects their purchasing decisions. It addresses the historical limitations of Rainbow research that has mainly been focused on gay, cisgender, white men. Rainbow consumer studies have tended to homogenise Rainbow identities and have primarily failed to understand consumption behaviour, which depends on a specific identity. This research focuses on non-binary and transgender consumers that consumer research has seldom addressed directly. While studies exist on third-party certification, few focus on consumers’ perception of third-party diversity certifications.

To examine this topic, fifteen semi-structured interviews were conducted, in-person, online via video conferencing platforms and over the phone. Thematic analysis was used to analyse the data and extract key themes that relate to the research objective. The focus of this research is not to determine conclusively the efficacy or impact of the Rainbow Tick but to understand the perceptions and judgements of some in the Rainbow Community. Based on the analysis, rationale as to how and why these judgements are formed can be theorised and implications drawn from the study for future improvement.

The findings from this research show that Rainbow consumers believe that the Rainbow Tick, as a third-party certification measuring firm inclusivity, is inadequate. There were 7 themes that contributed to the overall perceived inadequacy (an overarching theme) of the Rainbow Tick. They include lack of depth and rigidity for the evaluation process; misrepresentative information about transgender and non-binary identities; non-responsive to feedback; ineffectiveness of leadership; Cynicism; lack of transparency; and little accountability.

Findings also indicates that the Rainbow Tick has come across as an instance of woke washing. This is the second overarching theme. This summations occurred due to these consumers’ experiences working in affiliated companies and their observations of company practices. This represents a brand image problem for affiliated companies. The major theoretical contribution of this research is a framework that tracks non-binary and transgender consumers’ decision making and behaviour towards third-party diversity certification. Additionally, this research is novel because it has applied woke washing to third-party diversity certifications, and certifications in general, which has not been explored before. In the conclusion, managerial implications are provided that the Rainbow Tick and affiliated companies can use to address these issues.