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Boycott is The Ultimate Weapon |
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Contributed by Stacy Herbert
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 Ultimate Weapon The 'Ultimate Weapon'
By Stacy Herbert. The boycott is ‘the ultimate
weapon,’ says leading European bank. Cheuvreux’s
recent report, “Consumer Power: Pricing Power versus
Consumer Power,” provides fascinating insight into the power
of the
boycott while expanding on Max Keiser’s Boycott Vulnerability
Ratio
(BVR) by giving a bond like rating to a company’s
vulnerability to a
boycott.
“US financial activists have
recently introduced astute boycott
strategies. Created by Max Keiser, the BVR attempts to identify listed
companies that are financially the most sensitive to a boycott. We have
refined this concept in our scoring model.” -
“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 about Max
Keiser
To read the Cheuvreux boycott report download pdf below:
"Consumer
Power": Cheuvreux Bank report - 46K
The New York City Independent Media Center |
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