Does national culture impact consumer boycott prevalence? A multi-country study Online publication date: Tue, 14-Oct-2014
by Stefan Hoffmann
European J. of International Management (EJIM), Vol. 8, No. 2, 2014
Abstract: In many countries, the number of consumers who participate in boycotts has been increasing during the last decades. Boycotts can have a significant negative impact on firms because they impair sales figures, corporate reputation and stock prices. In this study, we theorise and empirically confirm that national culture determines the likelihood of consumer boycotts. Thus, our paper helps guide firms to international markets where there is less risk of boycott activity. Our analysis reveals that many cultural dimensions strongly co-vary with boycott prevalence. In particular, the risk of consumer boycotts rises with the practical scores of in-group collectivism. The paper outlines avenues for further research and provides multinational companies with guidelines to help predict boycott prevalence in the targeted markets.
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