RMIT Classification: Trusted

Article Review Template

Part A: Student and article information (This part is excluded from the word count)
Your name Leow Tsu Hsien Student ID 3996073
Number of words 519 Words
Title of the selected article Why do boycotts sometimes increase sales? Consumer activism in the age
of political polarization
Part B: Use your own words and sentences to complete each section (the questions are excluded from
the word count)
Objectives: What does the article set out to do?
The article by Michael Neureiter and C.B. Bhattacharya discusses the effectiveness of consumer activism,
in particular boycotts as well as buycotts in this climate of political polarization. It aims to understand
how and why boycotts can lead to either an increase or decrease in profit base on the difference stances
or decisions that a company decides to take.

Subject and theories/concepts: What is the article about? What is its subject? What are the central
concepts and/or theories discussed in the article?
The article focuses on consumer activism and the way that a company can use a boycott for its advantage
or disadvantage.

The first key theory is the how certain companies are able to see an increase in profit in spite of boycotts.
It was discussed that companies that are able to demonstrate their social and political values to the
public are seen as more transparent and therefore, more trustworthy and reputable.

The second key theory is how companies can analyse their consumers behaviour in the context of
political polarization. Consumers often align themselves with a political or social group and by identifying
their customer base, a company would be able to shape their organisations beliefs to match those of
their general target audience.

This article mainly emphasizes the importance of a company being knowledgeable and proactive in being
socially responsible as they help to build brand loyalty and avoid a negative image from consumers.
These concepts are ultimately a framework to understand the complex dynamic of consumer activism.

Findings/main arguments: What are the key findings or main arguments of the author?
Consumers are realising that they can their purchasing power to support companies that align with their
political and social values and boycotting companies that don’t by refusing to purchase their products.
However, even though boycotts can be an effective tool for consumer activism, but they can also have a
opposite effect and backfire leading to an increase in the sales for the companies that are targeted. As a
result, there is controversy due to the boycott, the company gets an increase in exposure to the public
eye, and this helps to draw attention and increase the public’s awareness of the company and it’s
products. Boycotts are most useful when they have the support of the general customer base of a
company or the support of the stakeholders.

Companies also have a lot to gain by being active in being proactive in corporate social responsibility and
by addressing different social and political issues, they will be to align with their consumers’ values which
builds brand loyalty and helps to increase sales.

Practical implication: Why is the subject of the article interesting and important for managers of
multinational enterprises in the contemporary global business world and how would the understanding
of the article benefit the managers?
The article is important for managers as consumers are more aware of how they can use their purchasing
Global Business: Journal Article Review Template (Assessment 1)
 RMIT Classification: Trusted

power to support companies that align with their social and political values and managers who are aware
of such issues will know how to respond and ensure that the company is not at risk of being boycotted
and making a loss in profit margins. It also helps to build brand loyalty among consumer and maintain a
great reputation among them. Furthermore, by understanding the different theories and concepts such
as signalling and identity theory, managers can gain a more nuanced understanding of the potential risk
and benefits of consumer activism and develop effective marketing and communication strategies for
their companies, using the trends to their advantage to make the best possible decisions to benefit their
company.
Part C: List of references (The references should be in alphabetical order according to the last name of
the first author. This part is excluded from the word count)

Michael Neureiter, Bhattacharya C.B. (2021) “Why do boycotts sometimes increase sales? Consumer
activism in the age of political polarization” Business horizons, 2021, Vol.64 (5), p.611-620

Global Business: Journal Article Review Template (Assessment 1)