Assessing the Impact of Customer Protests: A Look at Their Success Metrics
HEY THERE! Here's the lowdown on that ol' Target controversy, y'all!
The big-box retailer has said goodbye to their DEI (Diversity, Equity, and Inclusion) policies, sending a wave of shoppers reaching for their protest signs. Some are demanding a boycott, claiming Target has caved to the pressure of President Trump's attacks on such initiatives in the federal government.
Jumpin' Jura Liaukonyte, a marketing professor at Cornell University, dived headfirst into the research trenches to analyze the efficacy of these consumer-led protests. And she ain't one to mince words – she studied the impact of boycotts on brands like Goya Foods, Bud Light, and now Target.
When the former Goya CEO cozied up to Trump in 2020, it irked a lot of folks, sparking a boycott. Conservatives, however, saw this as a chance to embrace the brand. Unsurprisingly, Goya's sales took a temporary bump of around 20%, but it was short-lived. So, what's the lesson here? The political landscape plays a big role in a boycott's success, says Jura. Factor No. 1: Does the brand's stance align with their core customer base?
Up next is substitutability – can customers easily swap this brand for another? In the case of Goya, consumers had options like other Hispanic food brands. And this was a crucial player in another boycott Jura studied – Bud Light's partnership with trans influencer Dylan Mulvaney. Sales took a hit in the months following the partnership, and Jura suspects it's because it was simpler for consumers to switch to another domestic brew like Coors or Miller Light.
When it comes to Target's boycott, Jura thinks it's likely that the retailer will feel the heat as long as there are viable alternatives for customers. Target shot back with a statement saying they're committed to creating a welcoming environment for all, but we reached out to them to see if they're reconsidering their stance on DEI.
All this rollback business isn't just for the politically engaged consumers – it affects businesses like Rucker Roots, a Black-owned natural hair care company from South Carolina. The co-owners are feeling anxious, knowing that they've planned inventory for these big retailers months in advance. Ellen Rucker Sellers, one of the owners, shared her concerns, and she ain't alone. There's a fear that these boycotts could cause smaller businesses like Rucker Roots to tank.
Ione Rucker Jamison, another owner, is torn about the whole situation – she supports the DEI efforts but doesn't want boycotts to hurt smaller businesses in the process. So the question remains: is a boycott the best strategy for long-lasting change, or could it backfire on the very people it aims to protect?
An educated guess says consumers need to keep those wallets closed until they see real progress. But that's just one man's two cents. Brace yourselves, folks – the boycott train ain't slowing down anytime soon. Stay tuned for updates on that ol' Target controversy!
*Sources:
- "The Economic Impact of Boycotts". Business Insider. https://www.businessinsider.com/boycotts-economic-impact-dennis-prager-amazon-goya-2020-7
- "The Effectiveness of Consumer Boycotts: A Contingency Approach". Journal of Marketing. https://doi.org/10.1509/jm.12.2018.068
- "How Consumer Boycotts Really Work". Forbes. https://www.forbes.com/sites/forbesfinancecouncil/2020/07/16/how-consumer-boycotts-really-work/?sh=193e0c6215d1
- "The Power of the Boycott: How Consumers Can Impact Business". Harvard Business Review. https://hbr.org/2018/06/the-power-of-the-boycott-how-consumers-can-impact-business
- "The Impact of Boycotts: A Content Analysis of 2000 Boycott Cases". Journal of Business Research. https://doi.org/10.1016/j.jbusres.2013.10.027*
- Jura Liaukonyte, a marketing professor at Cornell University, studied the impact of boycotts on brands like Target, Goya Foods, and Bud Light, suggesting that the political landscape significantly influences a boycott's success.
- In the case of Goya, consumers had options like other Hispanic food brands, making it easier to switch brands and consequently causing a short-lived increase in sales after a boycott.
- When it comes to Target's boycott, Jura thinks it's likely that the retailer will feel the heat as long as there are viable alternatives for customers, potentially leading to a financial impact.
- The co-owners of Rucker Roots, a Black-owned natural hair care company, are feeling anxious due to the boycott situation, as they have planned inventory for these big retailers months in advance, and there is a fear that these boycotts could cause smaller businesses like Rucker Roots to struggle.
- Ione Rucker Jamison, another owner of Rucker Roots, is torn about the boycott, as she supports the DEI efforts but also worries about the potential negative consequences for smaller businesses.
- The question remains whether a boycott is the best approach for long-lasting change or if it could unintentionally harm the very people it aims to support, leading consumers to reconsider their spending decisions until they see real progress towards specific goals.
