Journal of Economics, Business and Management, Vol. 3, No. 7, July 2015 Brand Credibility to Mitigate Brand Boycott Preventive Strategy of Brand Globalness and Brand Endorsement: Theoretical Perspective Hesham Fazel organizers that hindered product distribution [3], boycotts Abstract—Boycott effectiveness is highly reliant upon are undesirable perceptions for marketers and managers, consumer willingness to engage or disengage in the boycott who must therefore do everything in their power to develop activities. Little research investigates possible strategies that can be applied to positively influence individuals’ perspectives and implement all possible tactics that will prevent or about the boycotted brands and perhaps increase their reduce the loss in market-share that can result from such willingness to disengage in boycott activities. This paper social actions by consumers. theoretically discusses a main relationship between brand For the most part, prior research studies on consumer credibility and willingness to dis/engagement in brand boycott boycotts have been conceptual or descriptive, with a focus movements. I propose that when consumers perceive a brand at higher level of credibility, they are less inclined to engage in on boycott organizers and targets as well as consumer boycott activities against that brand. Furthermore, this paper motivations for participating in boycott activities [4]. No discusses the idea that brand endorsement of local events and previous studies have investigated beyond the common consumers’ perception of brand globalness may moderate the relationship between firms and boycotters’ participation relationship between brand credibility and consumer willingness to dis/engage in boycotts. motivation. Little research has investigated the strategies that brands may apply protect their firm’s image and Index Terms—Brand, boycott, globalness, endorsement. investments and fight back against boycotters. Research Question I. INTRODUCTION In the present research, I examine the role of brand credibility in terms of its effect on consumers’ willingness In 2005, the Danish newspaper Jyllands-Posten published to engage or disengage in brand boycotts in response to an 12 cartoons that depicted the Muslim Prophet Muhammad offensive action. I discuss the boycotted brands that have in a way that was considered offensive to Muslims and been indirectly involved in an egregious action that which represented an extreme violation of Muslim values triggered a boycott (e.g.. Arla Foods). Credibility has been and principles. In Denmark’s Muslim community and in noted as a factor that plays a key role in customer Muslim countries around the world, this egregious act perceptions of the retail environment, particularly in the triggered widespread consumer boycotts against a variety of context of pricing tactics, advertising, salesperson Danish brands that had nothing to do with the publication interactions and purchase intention [5]. As mentioned, I except for the fact that they shared its Danish origin. For investigate the impact of brand credibility on consumers’ example, the government of Iran issued boycotts and willingness to engage in boycott activities against certain restrictions on all consumer products imported from brands. Further, I examine brand globalness and brand Denmark. Many Muslims and their supporters took part in endorsement (e.g., local event sponsorship) as two key the protests that ensued throughout the global community, factors that might explain the relationship between brand actively participating in one of the single biggest boycotts credibility and boycott dis/engagement. of all time [1]. This research does not aim to capture the complexity of A boycott represents the collective power of consumers an individual’s motivation to participate in a boycott; rather and serves as a mechanism for their social control of it aims to capture individuals’ perception of brand business. Boycotters intentionally use their “purchase credibility, brand globalness and brand endorsement and votes” to favour (or disfavour) firms that make (or do not how such perceptions can affect willingness to dis/engage in make) positive societal impacts. Boycotting is a collective boycotting activities. Understanding the factors that might act: similar to voting; it is a pro-social behaviour in which diffuse boycotts should help brands to develop certain any form of individual benefit appears to be limited; tactics for building a level of international brand nonetheless, people flock to join the censuses in large acceptability that can de-construct potential boycotts. In the numbers [2]. A reduction in sales has occurred in some next section, I will develop the research theoretical boycotts as a result of strikes or other actions by boycott background of boycotts; discuss chronological origins and successes, and link to the literature on brand credibility and brand endorsement. I thoroughly identify the research Manuscript received November 11, 2013; revised January 15, 2014. propositions, propose methods to test the research Hesham Fazel is with the King Khalid University, Saudi Arabia (e-mail: propositions and finally suggest path for future research. [email protected], [email protected]). DOI: 10.7763/JOEBM.2015.V3.268 694 Journal of Economics, Business and Management, Vol. 3, No. 7, July 2015 II. LITERATURE BACKGROUND A. Perceived Brand Credibility Consumer boycotts have been defined as “an attempt by With the globalization of markets, firms are expanding one or more parties to achieve certain objectives by urging the geographic scope of their operations, acquiring individual consumers to refrain from making selected companies in other countries, and entering into relationship purchases in the marketplace” [6] The “urging” and across national boundaries. As a result, firms need to pay organization of a boycott typically come from a pressure close attention to organizing and integrating marketing group or non-governmental organization. Boycotts are thus, strategy across marketplaces. An important component of a a division of a more general category of consumer behavior firm overall marketing strategy is its branding plan. Strong where social and ethical issues have an impact on purchase brands facilitate firms to establish identification in the decisions [7]. Boycotts strike to convey objections to marketplace and develop solid customer agreement [11]. political, religious, economic or financial events. Mostly, Building a strong brand image is the objective of various boycotts arise to condemn political implications, however, organizations because of the multitude of possible benefits organizing boycott activities to reach religious objectives that may gain. To appreciate better how to build brand are scarce and it is harder to deal with. Historically, the equity, many models of brand building have been put boycotts have contributed to some impressive successes and forward [12]. For the majority of customers in most allow relatively defenceless groups to emphasize their rights situations the meaning or image of the brand plays a major [8]. Colonists' boycott of British goods led to the role in their lives [13]. What the brand is regarded as in and elimination of the Stamp Act by the British government in how the brand should stand for in the minds of customers 1766 [9] whereas the boycotts were the main factor in the enhance brand image and simply creates brand meaning trade union movement in the United States in the early [14]. twentieth century Gandhi organized boycotts of British salt Brand image is the perception of the product or the brand and cloth as part of a strategy for non-violent direct action, by the consumer. Psychologically, the brand image is a which ultimately led to the independence of India in 1947 symbolic construct created within the minds of people and European consumers’ boycotts against Shell over its plan to consists of all the information and expectations associated dump the Brent spar oil platform at sea; the U.S. boycott of with a product or service. It is like building a personal Texaco over alleged racial remarks by senior management; relationship with costumers. Building a strong relationship and the U.S. boycott of Mitsubishi over alleged sexual between the brand and people drives people to stay away harassment in the workplace [10]. from such activities that might harm their brands. One of Boycotts usually are triggered for tow main purposes: the strategies that intensify brand image and lead to strong instrumental and expressive boycotts [8]. An instrumental relationship with the firm in general is establishing brand boycott intends to force the target to change a disputed credibility [14]. Firms must establish from day one a high procedure or policy. Consumers in this case force firms to credibility perception among their consumers and build change their prices or balance current prices with brand credibility that would help firms boosts the perception complimentary services that might help consumers accept of evaluating brand image [15]. and justify current prices. Expressive boycotts, however, are Brand credibility can be regarded as a psychological tool more generalized form of protest that communicates to satisfy consumers. It is a strategy that firms must consumers’ displeasure with the actions of the target. establish in order to survive in competitive market and Typically, this form of protest is characterized by a fuzzy aggressive consumers with unpredictable emotions.