How does the use of consumer boycotts impact the behavior of companies in the global marketplace?
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Consumer boycotts can significantly influence the behavior of companies in the global marketplace. Firms facing the threat of boycotts may adjust their strategies to align with consumer preferences, potentially increasing their expected profits. Psychological factors like attitudes, subjective norms, and perceived behavioral control can inhibit purchase behavior through increased boycott intentions, affecting how consumers interact with companies. Consumers and company employees may differ in their perceptions of boycotts, with employees often taking consumer damage cases more seriously than unethical conduct. The impact of boycotts can lead to companies reconsidering their practices and engaging in more consumer-centric approaches to avoid negative consequences in the marketplace.
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| Papers (5) | Insight |
|---|---|
| Not addressed in the paper. | |
| Consumer boycotts impact companies differently; consumers prioritize unethical conduct, while employees focus on consumer damage. Both groups lack accurate awareness of each other's perceptions, affecting company behavior. | |
| Consumer boycotts activate political agency in consumption, urging individuals to influence companies by refraining from purchasing goods or services, impacting their behavior in the global marketplace. | |
| Consumer boycotts can lead firms to comply more with consumer demands, potentially increasing profits. Facing a boycott can harm firms, but their competitors' boycotts can enhance market power. | |
4 Citations | Consumer boycotts impact global companies by influencing purchase behavior through attitudes, subjective norms, and perceived control, with gender moderating the effect, as seen in the South Korean boycott against Japanese firms. |
Related Questions
What are the short-term and long-term effects of a successful boycott on a company's sales and reputation?5 answersA successful boycott can have significant short-term and long-term effects on a company's sales and reputation. In the short term, boycotts can lead to a substantial decrease in product sales, with consumers actively participating in collective actions and showing a strong willingness to boycott. This can result in revenue loss, especially if proper countermeasures are not taken promptly. Furthermore, boycotts can impact the brand's reputation, affecting consumer perception, turnover, and stakeholder interests. In the long term, the effects of a boycott can persist, leading to lasting consequences on sales and market share. Companies must address ethical concerns and engage in effective crisis communication to mitigate the intensity of boycotts and protect their brand image.
How does the boycott movement affect the economy?4 answersBoycotts impact the economy by influencing consumer behavior and altering market dynamics. They activate political agency through consumption practices, leading to significant and persistent effects on sales, especially during international tensions. While boycotts can reveal information about resolve and avoid costly conflicts, they can also negatively affect firms by damaging brand image and loyalty, resulting in revenue loss. The threat of boycotts can push firms to comply with consumer wishes, potentially increasing expected profits and market power. However, the effects of boycotts can vary regionally, with different impacts on sales observed in various markets. Overall, boycott movements play a crucial role in shaping economic activities and consumer choices.
What is the impact of a consumer boycott on the economy?4 answersConsumer boycotts can have significant impacts on the economy. When firms comply with consumer demands, their marginal costs increase, but the probability of facing a boycott decreases, leading to higher expected profits. The regional impacts of boycotts can be heterogeneous, with areas heavily dependent on the boycotting group experiencing larger export losses. Boycotts can lead to decreased sales and revenue for boycotted products, while non-boycotted products may see increased sales. The market share of boycotted brands can drop substantially during and after a boycott, with long-lasting effects. Boycotts can also affect advertising effectiveness, with non-Japanese brands benefiting more during a boycott. Overall, consumer boycotts can disrupt markets, decrease sales, and impact the profitability of boycotted firms, while providing opportunities for non-boycotted competitors.
What is the impact of consumer boycotts?4 answersConsumer boycotts can have significant impacts on firms and regions. Firms that comply with consumers' wishes may face higher marginal costs but lower the probability of a boycott, potentially increasing their expected profits. The threat of a boycott can also give firms more market power, as they gain when their competitors face a boycott. Regional impacts of boycotts can be large and heterogeneous, with some areas experiencing substantial export losses due to boycott activity. Boycotts can be triggered by perceived divergent political attitudes of employees, leading to adverse effects on consumer demand, although these effects tend to subside within a quarter. Boycotts can also lead to decreased sales and revenue for boycotted products, while non-boycotted products may see increased sales. Overall, consumer boycotts aim to activate political agency through consumption practices, allowing individuals to use marketplace means to achieve their goals.
How has the boycott affected some brands?5 answersThe boycott has had a negative impact on brand reputations and loyalty, resulting in a loss of sales revenue and damage to brand image. Boycotts can be motivated by economic, political, social, or religious concerns, and can be geographically contained or spread internationally through advances in communication technology. The success of a boycott call-to-action depends on factors such as consumer animosity, perceived efficacy, subjective norms, brand judgment, and counterargument. Transnationality has also been found to impact boycotting behavior, with transnational consumers participating in boycotts. When a brand holds a different view from consumers on a debatable issue, ideological incompatibility can lead to boycott intentions, especially among high Attention to Social Comparison Information (ATSCI) individuals. Overall, boycotts have the potential to significantly affect brands, and companies need to be aware of their positions and crisis management strategies to mitigate the negative effects.
Do online sales channels save brands of global companies from consumer boycotts? A geographical analysis?4 answersOnline sales channels can play a role in saving brands of global companies from consumer boycotts, particularly when considering the geographical aspect. Strong brand strength combined with online purchasability can be a beneficial strategy for global companies to increase consumers' actual purchase behavior. Additionally, attractive online channels and global brand management are essential in mitigating the impact of unexpected consumer boycott campaigns. However, the effectiveness of online sales channels may vary depending on the region. Non-metropolitan consumers show an increase in actual purchase behavior compared to metropolitan consumers. Furthermore, consumer boycotts can happen against views taken by employees, and the negative effects of boycotts on consumer demand can subside within a quarter. Therefore, global companies should consider the differential impact of geography and consumer responses when formulating online sales channel strategies in the context of boycott campaigns.