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Consumer boycotts: The impact of the Iraq war on French wine sales in the U.S

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  • Larry Chavis

    ()

  • Phillip Leslie

    ()

Abstract

The French Opposition to the war in Iraq in early 2003, prompted calls for a boycott of French wine in the US. We measure the magnitude of consumers%u2019 participation in the boycott, and look at basic evidence of who participates. Conservative estimates indicate that the boycott resulted in 26% lower weekly sales at its peak, and 13% lower sales over the six month period that we estimate the boycott lasted for. These findings suggest that business should be concerned that their actions may provoke a boycott which hurts their profits. We also find that neither political preferences or media attention are important determinants of boycott participation.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s11129-008-9043-y
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Bibliographic Info

Article provided by Springer in its journal QME.

Volume (Year): 7 (2009)
Issue (Month): 1 (March)
Pages: 37-67

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Handle: RePEc:kap:qmktec:v:7:y:2009:i:1:p:37-67

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Web page: http://www.springerlink.com/link.asp?id=111240

Related research

Keywords: Boycott; Wine; Free-riding; Consumer behavior; M31; D12; L66;

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References

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  1. Koku, Paul Sergius & Akhigbe, Aigbe & Springer, Thomas M., 1997. "The Financial Impact of Boycotts and Threats of Boycott," Journal of Business Research, Elsevier, vol. 40(1), pages 15-20, September.
  2. David P. Baron, 2003. "Private Politics," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(1), pages 31-66, 03.
  3. Siew Hong Teoh & Christopher Paul Wazzan & Ivo Welch, 1996. "The Effect Of Socially Activist Investment Policies On The Financial Markets: Evidence From The South African Boycott," Yale School of Management Working Papers ysm70, Yale School of Management.
  4. Stefano DellaVigna & Ethan Kaplan, 2007. "The Fox News Effect: Media Bias and Voting," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 1187-1234, 08.
  5. Andrew John & Jill Klein, 2003. "The Boycott Puzzle: Consumer Motivations for Purchase Sacrifice," Management Science, INFORMS, vol. 49(9), pages 1196-1209, September.
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Cited by:
  1. Guy Michaels & Xiaojia Zhi, 2007. "Freedom fries," LSE Research Online Documents on Economics 51598, London School of Economics and Political Science, LSE Library.
  2. Baron, David P., 2011. "Credence attributes, voluntary organizations, and social pressure," Journal of Public Economics, Elsevier, vol. 95(11), pages 1331-1338.
  3. Murat Hakan Altintas & Bahar F. Kurtulmusoglu & Hans Ruediger Kaufmann & Serkan Kilic, 2013. "Consumer boycotts of foreign products: a metric model," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(34), pages 485-504, June.
  4. Hwang, Byoung-Hyoun, 2011. "Country-specific sentiment and security prices," Journal of Financial Economics, Elsevier, vol. 100(2), pages 382-401, May.

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