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Egregiousness and boycott intensity: evidence from the BP Deepwater Horizon oil spill

journal contribution
posted on 2018-01-01, 00:00 authored by Z Wang, Alvin LeeAlvin Lee, Michael PolonskyMichael Polonsky
Consumer boycotts are triggered by egregious events, but the literature has not distinguished the level of egregiousness from consumers’ preferences or disutility associated with a given level of egregiousness, nor has the literature studied how these two components of egregiousness affect boycott intensity. We provide a model of market-level boycotts that distinguishes the two egregiousness components. Consistent with the predictions of our model, the market-level intensity of consumer boycotting of BP-branded gasoline, which was triggered by the BP Deepwater Horizon oil spill, increased with the spill’s egregiousness level, approximated by the officially reported daily amount of oil leaked into the ocean and by other measures (i.e., the duration of the spill and the intensity of media coverage), and with consumers’ disutility from egregiousness, approximated by an area’s environmentalism and its proximity to the Gulf of Mexico.

History

Journal

Management Science

Volume

64

Season

In Press

Pagination

149-163

Location

Catonsville, Md.

ISSN

0025-1909

eISSN

1526-5501

Language

eng

Publication classification

C1 Refereed article in a scholarly journal, C Journal article

Copyright notice

2016, INFORMS

Issue

1

Publisher

Institute for Operations Research and the Management Sciences (I N F O R M S)

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