Six factors that make a brand more susceptible to consumer backlash.
March 20, 2024
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Why did the Bud Light boycott affect the beer brand’s sales when many other boycotts have only marginal or short-term impact? An analysis of sales data confirms that Bud Light suffered a sustained downturn in sales, more pronounced in Republican-leaning counties in the U.S. And it explains several factors that determine how vulnerable a brand is to a boycott. Boycotts can have a bigger impact when a product is more substitutable, when it is more visible, and when consumers feel psychological “ownership” over it.
Taking a social stance has become a rite of passage for contemporary brands that are hoping to resonate with younger, more socially-conscious audiences. In April 2023, Bud Light tried its hand at this strategy, collaborating with transgender influencer Dylan Mulvaney on a social media promotional post. This sparked backlash from several prominent conservatives, leading many conservative figures and groups to call for a boycott of Bud Light.
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Jura Liaukonyte is an Associate Professor at Cornell University’s SC Johnson College of Business. Her research focuses on quantifying the effects of advertising, information, and social media movements on consumer choice.
Anna Tuchman is an Associate Professor of Marketing at Northwestern University’s Kellogg School of Management. Her research addresses economic questions related to advertising, pricing, and public policy.
Xinrong Zhu is an Assistant Professor of Marketing at Imperial College London Business School, specializing in quantitative marketing, retail analytics, and the causal impact of policy changes, marketing activities, and politics on consumer behavior.
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