Applying information integration theory to the study of boycott–spillover to linked regions

Abstract

The aim of the study is twofold. Firstly, to examine the influence of forced labelling regulations on consumers’ intention to boycott products sourced from undesirable sources (the Israeli settlements—ISt). Secondly, to investigate the extent to which a boycott directed towards the Israeli settlements would expand (spillover) to a linked country (Israel). For this purpose, we apply the information integration theory. Data were collected from a sample consisting of 580 respondents who are United Kingdom grocery shoppers. The empirical results support the study claim that forced labelling comprises a trigger that motivates consumers to modify their attitudes, which in turn affects their buying decisions. Additionally, the results provide evidence to the “spillover effect” in the context of linked countries. This research provides important implications to help exporting firms and policy makers. Boycotts have critical effects on firms’ market share and profitability. Consequently, managers are required to develop effective strategies to overcome the complex consequences of consumer boycotts in foreign markets. For policymakers, countries that seek to protect their markets from boycott initiatives can benefit from the new knowledge presented in this study.