A three‐country study on consumer responses to political conflicts: Boycott, buycott, or standby

In the context of recent deglobalization trends, heightened political conflicts between nations have become more prevalent, leading to a surge in political consumption incidents and subsequent market disruptions. This research examines consumers' willingness‐to‐pay (WTP) in China, South Korea, and the United States for socks made with non‐Xinjiang cotton following a political dispute over Xinjiang cotton. The primary objective is to gain insights into the political consumption behaviors exhibited by consumers in these countries. A comprehensive dataset of 1770 samples (590 per country) was gathered through a hypothetical double‐bounded dichotomized choice experiment designed to elicit the WTP for such socks over those made with Xinjiang cotton. The WTPs for each consumer, as a quantitative measure of their boycott or buycott, are examined. The findings reveal that Chinese consumers display the lowest WTP for non‐Xinjiang cotton socks, signaling a tendency to boycotting foreign cotton products. In contrast, consumers in the United States and South Korea demonstrate a tendency to support non‐Xinjiang cotton products. Notably, South Korean consumers, positioned as a third party in the conflict, exhibited buycott behavior during the dispute, underscoring the notion that political conflicts can significantly impact consumer behavior in unrelated countries. Furthermore, the study includes an in‐depth analysis of factors influencing this political consumption tendency. These insights offer valuable perspectives for the industry to adapt and thrive amid the challenges posed by geopolitical dynamics and shifting consumer sentiments, as well as for governments to consider the economic impacts of political decisions.