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The Impact of Religiously Motivated Boycotts on Brand Loyalty Among Transnational Consumers By The Impact of Religiously Motivated Boycotts on Brand Loyalty among Transnational Consumers By: Omar Al Serhan Supervised by: Prof. Ibrahim Sirkeci (Director of Studies) Dr. Elias Boukrami (Supervisor) Thesis submitted to the London School of Commerce/ Cardiff Metropolitan University in partial fulfilment of the requirements for the degree of Doctor of Philosophy. February 2016 i DECLARATION I declare that this work has not been previously accepted in substance for any degree and is not being concurrently submitted for any other degree. I further declare that this thesis is the result of my own independent work and investigation, except where otherwise stated (a bibliography is appended). Finally, I hereby give consent for my thesis, if accepted, to be available for photography and inter-library loan, and for the title and abstract to be made available to outside organisations. Signed: OMAR AL SERHAN ii ABSTRACT Boycotting has been empirically proven to be damaging to business organisations, and there is compelling evidence to suggest that it is not only here to stay, but it is also on the increase. Brand loyalty is declining for many reasons including the effects of market competitiveness, the fading of brand differentiation and the ever-changing marketplace landscape. Transnationality and its impact on consumer behaviour—despite the increase in the international human movements and border crossing—is still an understudied field. The conducted literature review suggests that little attention has been paid to explore the link between boycotting and brand loyalty from the transnational consumers perspective. To achieve the research objective, which is to develop an understanding of the impact of boycotting on brand loyalty and the influence of transnationality on this relationship, a mixed methods approach was adopted. Thirty-five qualitative interviews were conducted with London-based Muslim Arabs and sequentially an online questionnaire that generated 537 responses. This research has empirically revealed the negative impact of consumer boycotts on brand loyalty and highlighted the influential role that transnationality, social capital and demographics play in shaping the consumer boycotting and brand loyalty decision-making process. This study also explored the role of religion on boycotting and the subsequent brand loyalty behaviour and empirically confirmed that religiously motivated boycotts are damaging for business firms as they have a sudden and long-term negative effect on loyalty. The study shows that religious denominations have a significant impact on both boycotting and loyalty behaviour. Based on the study findings, implications, recommendations for management and consumers alike and suggestions for future research are presented. iii ACKNOWLEDGEMENT As this journey is approaching its end, it is important to acknowledge the amazing people who have been a part of it since it begun in 2012. I thank my director of study Professor Ibrahim Sirkeci for the knowledge he transferred to me during this journey, he was an endless source of motivation and encouragement and on many occasions when things went blank and my vision darkened, he would come forward and show me the way forward. I would also like to acknowledge the tremendous efforts of my supervisor Dr Elias Boukrami. This work would not have reached this stage without his continuous assistance, sincere commitment and unconditional support throughout my PhD journey. Finally, I am very grateful to all my family members—both the transnational and the non- transnational ones—for the support iv TABLE OF CONTENTS DECLARATION ……….……………………………………………………………………………………………………………………………..ii ABSTRACT ………….…………………………………………………………………………………………………………………………………iii ACKNOWLEDGEMENT …………………………………………………………………………………………………………………………iv TABLE OF CONTENTS ……………………………………………………….………………………………………………………….……..v LIST OF FIGURES …………………………………………………………………………………………………………………………..……..ix LIST OF TABLES ………………………………………………………………………………………………………………………………..…xii Chapter 1 Introduction ................................................................................................................................. 1 1.1 BACKGROUND CONTEXT ..................................................................................................................................... 1 1.2 PROBLEM STATEMENT AND RESEARCH RATIONAL ......................................................................................... 5 1.3 RESEARCH OBJECTIVES ....................................................................................................................................... 6 1.4 THESIS CONTRIBUTION ....................................................................................................................................... 7 1.5 THESIS OUTLINE .................................................................................................................................................. 8 Chapter 2 Study Context ............................................................................................................................. 10 2.1 INTRODUCTION ................................................................................................................................................. 10 2.2 ISLAM AND CONSUMPTION BEHAVIOUR ......................................................................................................... 10 2.3 THE RELIGIOUS DENOMINATIONS IN THE ARAB WORLD ............................................................................ 11 2.4 DANISH TRADE AND THE 2006 DANISH BRANDS BOYCOTT ...................................................................... 14 2.4.1 BACKGROUND OF THE DANISH BRANDS BOYCOTT .................................................................... 15 2.4.2 THE NATURE OF THE BOYCOTT ................................................................................................ 18 Chapter 3 Transnational Arab Consumers .................................................................................................. 19 3.1 INTRODUCTION ................................................................................................................................................. 19 3.1.1 THE ARABS ............................................................................................................................. 19 3.1.2 MIDDLE EASTERN AND NORTH AFRICAN ARABS IN ENGLAND AND LONDON ................................. 21 3.2 MIGRATION AND CONSUMER BEHAVIOUR ..................................................................................................... 23 3.3 CONCLUSION ..................................................................................................................................................... 25 Chapter 4 Consumer Boycotts .................................................................................................................... 27 4.1 INTRODUCTION ................................................................................................................................................. 27 4.2 TYPES OF BOYCOTT .......................................................................................................................................... 33 4.2.1 CONSUMER BOYCOTTS “AS AMERICAN AS APPLE PIE” .............................................................. 35 4.2.2 BOYCOTTS IN EUROPE ............................................................................................................. 37 4.2.3 BOYCOTTS IN AFRICA .............................................................................................................. 37 4.2.4 BOYCOTT IN THE ARAB WORLD ................................................................................................ 38 4.3 MOTIVATIONS FOR BOYCOTT .......................................................................................................................... 38 4.3.1 RELIGIOUSLY MOTIVATED BOYCOTT ......................................................................................... 39 4.3.2 ECONOMICALLY MOTIVATED BOYCOTT ..................................................................................... 41 4.3.3 WAR AS MOTIVATION FOR BOYCOTT ......................................................................................... 41 4.3.4 CULTURALLY MOTIVATED BOYCOTT.......................................................................................... 42 4.3.5 ENVIRONMENTALLY AND ETHICALLY MOTIVATED BOYCOTT ........................................................ 43 4.4 CONCLUSIONS .................................................................................................................................................... 44 Chapter 5 Consumer Brand Loyalty ............................................................................................................ 46 v 5.1 INTRODUCTION ................................................................................................................................................. 46 5.2 DETERMINANTS OF BRAND LOYALTY ............................................................................................................ 49 5.2.1 PERCEIVED QUALITY................................................................................................................ 50 5.2.2 PRICE ..................................................................................................................................... 50 5.2.3 SALES PROMOTIONS ...............................................................................................................
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