- “Consumer Power,” Cheuvreux June 2007
The boycott is ‘the ultimate weapon,’ according to the report.
What is a boycott? A boycott is “a free, voluntary and ideological refusal on a systematic basis to consume a company’s products or services (or that of a country) for the purpose of obliging it to meet a demand.” As Max Keiser has repeatedly stated, “a boycott is the no cost weapon of choice for activists.”
And while 91% of consumers say they are prepared to boycott the products of a company for poor behaviour, in reality, the ‘ultimate weapon’ is wielded mostly by the educated and the middle to upper income brackets. According to the report, less than 15% of people with no university degree have ever boycotted a product. And only 25% of those with income of less than 1500 euros per month have boycotted a product, compared to 46% of those with monthly incomes greater than 3100 euros.
As is reflected in Karmabanque research, Cheuvreux found that consumer goods and retailers were most vulnerable to a boycott, hence the lowest CCC rating. The companies most resistant to a boycott were found to be the banks, AAA rating for them. Banks shouldn’t be too relaxed about this as Cheuvreux’s study also found that resistance to a boycott “is also a good indicator of the threat of possible regulation.”
Max Keiser created Karmabanque in 2002 as a place for activists to monetize their dissent. With Cheuvreux’s report providing another layer of important dissent data, the ultmate boycott weapon just got a market guided missile.
To learn more go to http://www.maxkeiser.com
To read the boycott section of Cheuvreux Report, see attachment