The Effectiveness of a Social Media-Based Boycott and Social Media Marketing Capabilities in Mitigating Its Impact
Keywords:
marketing development, social media-driven boycott, word-of-mouth, social media capabilities, event studyAbstract
This study evaluates the effectiveness of a social media-driven consumer boycott using market response and explores the role of social media marketing capabilities in mitigating its impact. Using an event study methodology, the findings reveal that a social media-driven consumer boycott can negatively affect firm value, as social media accelerates word-of-mouth dissemination about the boycott. Additionally, this study explores how word-of-mouth and firms’ social media capabilities influence the boycott's effectiveness.
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