© Springer Science+Business Media Singapore 2016. Student cohorts at higher education institutions worldwide are more diverse than ever due to international student mobility and a greater inclusion of previously underrepresented groups within the higher education system. Despite the potential effects of diversity on student academic performance and wellbeing, related studies have commonly been limited by a focus on cultural diversity. To better understand the importance of cultural diversity, we expand the literature by exploring various types of diversity simultaneously. A two-step research process, including a series of in-depth interviews and a survey, was used to examine the extent to which different dimensions of diversity, including characteristics brought to the group (language skills, academic goals and extroversion) and those that emerge during the group process (external commitments, commitment to task and adherence to rules), can influence the students’ satisfaction with the process and satisfaction with the outcome. Furthermore, bi-directionality of communication and information-sharing emerge as processes that mediate the influence of diversity, in particular influencing the effect of differences in academic goals and differences in language skills, on group satisfaction with the process and outcome respectively. Implications for marketers are provided.