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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.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11981.

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Date of creation: Jan 2006
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Publication status: published as Chavis, L. and P. Leslie. “Consumer Boycotts: The Impact of the Iraq War on French Wine Sales in the U.S.” Quantitative Marketing & Economics 7, 1 (2009): 37-67.
Handle: RePEc:nbr:nberwo:11981

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  1. David P. Baron, 2003. "Private Politics," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(1), pages 31-66, 03.
  2. 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.
  3. DellaVigna, Stefano & Kaplan, Ethan, 2006. "The Fox News Effect: Media Bias and Voting," Seminar Papers 748, Stockholm University, Institute for International Economic Studies.
  4. Andrew John & Jill Klein, 2003. "The Boycott Puzzle: Consumer Motivations for Purchase Sacrifice," Management Science, INFORMS, vol. 49(9), pages 1196-1209, September.
  5. Ivo Welch & Siew Hong Teoh & Paul Wazzan, 1995. "The Effect of Socially Activist Investment Policies on the Financial Markets: Evidence from the South African Boycott," Finance _005, University of California at Los Angeles.
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Cited by:
  1. Guy Michaels & Xiaojia Zhi, 2007. "Freedom fries," LSE Research Online Documents on Economics 3255, London School of Economics and Political Science, LSE Library.
  2. 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.
  3. Hwang, Byoung-Hyoun, 2011. "Country-specific sentiment and security prices," Journal of Financial Economics, Elsevier, vol. 100(2), pages 382-401, May.
  4. Baron, David P., 2011. "Credence attributes, voluntary organizations, and social pressure," Journal of Public Economics, Elsevier, vol. 95(11), pages 1331-1338.

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