The Effectiveness of a Social Media-Based Boycott and Social Media Marketing Capabilities in Mitigating Its Impact

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.