Consumer Boycotts, Country of Origin, and Product Competition: Evidence from China’s Automobile Market

Triggered by a territorial dispute as well as historical animosity, a nationwide civilian boycott of Japanese products took place in China in the summer of 2012. Using detailed data on vehicle sales in four major Chinese cities (Beijing, Tianjin, Shanghai, and Nanjing), this study investigates the impact of boycotts on sales and advertising effectiveness of products from different countries of origin. The boycott dramatically reduced the market share of Japanese brands and benefitted Chinese and non-Japanese foreign brands. Consumer switching to other brands accounted for the majority of the loss in sales. Advertising became less effective for Japanese brands during the boycott but more effective for non-Japanese brands, especially at the parent-brand level (e.g., Toyota) than sub-brand level (e.g., Camry). The sales impacts were strongest in Nanjing, the city that had the most atrocious war experience with Japan during the Battle of Nanjing in 1937, and weakest in Beijing, where local government agencies explicitly discouraged public demonstrations. Finally, although the decline in sales of Japanese brands did not vary by quality or production location, competing non-Japanese brands that were had better quality or were manufactured locally benefitted more. This paper was accepted by Juanjuan Zhang, marketing.

Behave Accordingly

Some think that China and Japan are destined for war. Japan’s historical wartime aggression and present-day territorial disputes and military tensions over control of a small grouping of uninhabited islands in the East China Sea, known as Senkaku in Japan and Diaoyu in China, pave the way for a modern-day conflict. Beijing has even weaponized its trade with Japan to drive nationalism at home and try to shape Japan’s foreign and defense policy. Others argue China and Japan’s economic relationship will save Asia from a disastrous conflict. For decades the two economies have fed off one another. Economic interdependence forces Beijing to pull back from hard trade restrictions and consumer boycotts. Yet Xi Jinping’s calls for China to become self-sufficient by building its technological capabilities are a threat to Japan’s modern industries. Beijing’s military aggression and economic competitiveness provokes a response from Japan to build up its military and diversify its trade and investment.

The Difference in Consumers’ and Company Employees’ Perceptions of Consumer Boycotts and Analysis of the Factors Affecting Boycott Participation

This study investigated how consumers and company employees differ in their perceptions of boycotts based on the co-orientation model. Regarding the reasons of boycotts, consumers take both consumer damage cases and unethical conduct equally seriously, while company employees take consumer damage cases more seriously than unethical conduct. Consumer perceptions of the necessity for boycotts was higher than company employees, while employees were more aware of the negative impact of boycotts than consumers. Based on the co-orientation model, we examined how consumers and employees estimate differences in their perceptions of boycotts. The results showed that consumers and company employees are not accurately aware of each other’s perceptions. Lastly, logistic regressions were conducted to identify the factors affecting three types of participation: online opinion expression, personal non-purchasing, and persuading other people to join the boycotts. The results showed that male consumers are more likely to participate in online opinion expression; consumer perceptions of effectiveness of boycotts and the perceived severity of consumer damage increase the likelihood of participation in online opinion expression. Consumer perceptions of the necessity of boycotts and their opinion leadership increased the likelihood of non-purchasing. Finally, consumers with higher opinion leadership and female consumers were more likely to encourage others to take part in boycotts. In addition, consumers are more likely to persuade others to join the boycotts if they have stronger beliefs that companies will not seriously consider consumer problems.

Nationalistic appeals and consumer boycotts in China, 1900-1949

Purpose The purpose of this study is to explore how nationalistic appeals may affect consumers’ perception and purchasing of targeted brands. Qualitative historical data from old China (1900–1949) reveal that social movement groups can adopt nationalistic appeals assisted by meaning framing – defined as a creative interpretation of symbols, designs, behaviors, social events and cultural identities to serve social and political goals – to shape consumers’ attitudes toward foreign brands. After examining the mechanisms and processes underlying consumer boycotts from 1900 to 1949, the responsive strategies of affected foreign companies are illustrated. Design/methodology/approach Critical historical research method is applied to historical data and historical “traces” from China’s corporate documents, memoirs, posters, advertisements, newspapers and secondhand sources documenting Chinese boycotts from 1900 to 1949. Findings Consumers may pursue interests beyond economic interests. Nationalistic appeals can mobilize consumer boycotts against foreign brands that were perceived to support or relate to targeted countries. Political framing of certain events shapes consumers’ perceptions and concomitant brand choices. Research limitations/implications Although differences between historical and current contexts may require tailoring past marketing strategies to current conditions, past strategies can inform current and future strategies. Practical implications Strategies adopted by foreign companies in old China (1900–1949) can help contemporary companies design effective marketing strategies for a hostile marketplace infused with nationalistic appeals and competing interests. Social implications Although local companies can adopt economic or political nationalism to realize their economic goals, it represents a double-edged sword that can harm national brands. Originality/value A historical analysis of nationalistic business appeals in pre-1949 China can inform the counterstrategies modern companies adopt to overcome consumer boycotts.

Nationalist Spirits of Islamic Law after World War I: An Arab-Indian Battle of Fatwas over Alcohol, Purity, and Power

In 1922, one of the most famous Muslim scholars of modern times, the Syrian-Egyptian reformer Rashīd Riḍā, published in his journal a detailed fatwa in defense of alcohol. He did so in reaction to an obscure Indian jurist's fatwa that had warned Muslims not to use alcoholic products. On the surface, the authors of the fatwas appeared to be principally concerned with the right way to interpret sacred laws of purity and pollution. However, this article reveals that their disagreement had much to do with differing approaches to the politics of independence. Their divergence is intriguing because the cities where they lived, Cairo and Bombay, had just experienced the convulsions of anti-British consumer boycotts. And it emerged at a time when anti-imperial Muslim activists from the Middle East and South Asia were rallying together for a pan-Islamic cause—to prevent the final collapse of the caliphate. These movements swayed both Riḍā and his rival, who may well be described as Muslim nationalists. Yet they embraced radically different strategies for independence. One aimed for national purity, the other for national power. This discrepancy led to the battle of fatwas—a forgotten battle that is worth remembering because it suggests some of the difficulties that Muslim jurists of Arab or Indian ancestry faced during the interwar period when they tried to turn Islamic law into an effective nationalist discourse.

Consumer Boycotts in Perspectives of Young Consumer of Generation Y in Poland and France

Young consumers are watching closely the activities of brands on the market and increasingly express their dissatisfaction by participating in consumer boycotts. This article focuses on showing the phenomenon of consumer boycotts through the prism of generation Y representatives in Poland and France. In the first part, the notion of consumer boycotts is explained and the characteristics of generation Y are presented, taking into account the differences between Poland and France. Then the results of quantitative research (CAWI), which concerned the willingness to get involved and forms of participation of young consumers from France and Poland in consumer boycotts, are presented. The analysis of the results showed that French students declare greater willingness to participate in boycotts than Polish ones. The main reason for participation for the French is that the boycott concerns an important issue, and for the Poles, that it concerns them personally. No significant differences have been shown as regards the preferred forms of participation in boycotts.