Frontiers: Spilling the Beans on Political Consumerism: Do Social Media Boycotts and Buycotts Translate to Real Sales Impact?

Jūra Liaukonytė (), Anna Tuchman () and Xinrong Zhu
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Jūra Liaukonytė: S.C. Johnson College of Business, Cornell University, Ithaca, New York 14850
Anna Tuchman: Kellogg School of Management, Northwestern University, Evanston, Illinois 60208

Marketing Science, 2023, vol. 42, issue 1, 11-25

Abstract: Brands increasingly face pressure from consumers to take a stance on political issues, but there is limited empirical evidence on the effect of political consumerism on sales. In this paper, we quantify the consequences of a brand taking a political stance. In July 2020, the chief executive officer of Goya, a large Latin food brand, praised then president Donald Trump, triggering a boycott and a counter “buycott” movement supporting the brand. Using consumer-level purchase data, we measure the net effect of the boycott/buycott movements on sales. Boycott-related social media posts and media coverage dominated buycott ones, but the sales impact was the opposite: Goya sales temporarily increased by 22%. However, this net sales boost fully dissipated within three weeks. We then explore heterogeneity in the sales response with the goal of understanding which households are most likely to engage in political consumerism and what factors serve as frictions to participation. We document large sales increases (56.4%) in heavily Republican counties but do not find a strong countervailing boycott effect in heavily Democratic counties or among Goya’s core customer base—Latino consumers. Finally, we show that brand loyalty and switching costs are potential explanations for the limited evidence of boycotting among experienced Goya customers.

Keywords: political consumerism; boycott; buycott; social media; switching costs (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:42:y:2023:i:1:p:11-25

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