How do consumers react to LGBTQ+ activism? Evidence from mobile phone geolocation data

Abstract

Corporate activism is an important tool to bring attention to societal issues. While it can have many benefits, it also comes with risks, such as alienating a relevant share of a firm’s consumers. In this study, we use mobile phone geolocation data to examine how firms’ LGBTQ+ activism influences consumer behavior. Our results suggest that LGBTQ+ activism decreases consumer store visits in the short term. The effect occurs in both liberal and conservative counties. This is surprising, as liberals generally react favorably to LGBTQ+ activism. One possible explanation is that (liberal) consumers reduce their store visits due to pink washing concerns.