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

  • Larry Chavis


  • Phillip Leslie


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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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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  1. 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.
  2. 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.
  3. Andrew John & Jill Klein, 2003. "The Boycott Puzzle: Consumer Motivations for Purchase Sacrifice," Management Science, INFORMS, vol. 49(9), pages 1196-1209, September.
  4. 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.
  5. David P. Baron, 2003. "Private Politics," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(1), pages 31-66, 03.
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