On the Sources of Consumer Boycotts Ineffectiveness

Abstract

This article investigates weaknesses of consumer boycotts. First, usual shortcomings of collective action, such as coordination failure and free riding, reduce considerably the success likelihood. Second, consumers with the highest ability to hurt the targeted firm’s profit also have the highest opportunity cost of boycotting. Thus, they are less likely to participate in the boycott. Conversely, the most involved consumers have high environmental preferences and small amounts of consumption, which prevent them from hurting the firm’s profit enough.