Strome Business Minute With Dr. Jeff Tanner

Facebook continues to lose major customers due to its unwillingness to regulate content. Beginning with North Face, the company has lost dozens of advertisers, including Coca Cola, Campbells Honda, Starbucks, Eddie Bauer, and Levis. While Facebook has announced policy changes, groups such as the Anti-Defamation League and the NAACP continue to press for boycotts. Only about one in four boycotts actually result in the desired change, but one study shows that boycotts cost companies about one hundred and twenty million in stock price value over the following two months. Most boycotts ask individual consumers to change their buying habits, who lose interest quickly. In this instance, however, Facebook’s largest customers are boycotting, not individuals, so we’ll see if the desired changes occur. We’ll also see if the boycotting brands are hurt or helped by their stance. This has been Strome Business Minute, presented by the Strome College of Business, Old Dominion University.