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Target Boycott: How Effective Are Boycotts?

GREENSBORO, N.C. -- More than 900,000 people have signed an online petition, vowing to not shop at Target because of its bathroom policy.

READ: More than 900,000 People Pledge to Boycott Target

After states like North Carolina and Mississippi passed laws viewed by some as discriminating against the LGBT community, the retailer announced its doors were open to everyone.

In a statement, Target said in part,"we welcome transgender team members and guests to use the restroom or fitting room facility that corresponds with their gender identity."

The day after Target took a stand, The American Family Association started an online petition to boycott the store. It believes the policy is dangerous for women and children.

READ: The American Family Association Calls for Boycott of Target

Nearly 1 million people have signed this pledge in the last week but 2 Wants to Know, do boycotts work?

"There is certainly going to be some impact from any type of boycott, the question is-is it a meaningful impact? When you consider that Target has over 100,000 million people who shop at it every single year, if you have a million people boycotting, you're talking about 1 percent," said Zagros Madjd-Sadjadi, PhD, Winston-Salem State University.

Dr. Madjd-Sadjadi is an economics professor at Winston-Salem State University. He says the first indication of any economic impact of this boycott will be seen when Target releases its next sales figures.

He says there are a few problems that make boycotts unsuccessful and sometimes hard to measure.

"You don't know whether or not the people who are signing the petition are in fact regular customers of Target. It's very easy to boycott something that you don't actually patronize," said Dr. Madjd-Sadjadi.

He added, "The final problem that you have is that people on the other side of Target who are now more likely to shop at Target then otherwise."

Madjd-Sadjadi says Target would see a bigger impact in the long run if for example, major universities or corporations stop investing their pension plans in the retailer.

"Part of the problem is that some of the companies that are saying that they are boycotting are doing so for political reasons."

He added, "It doesn't mean that these do not have impacts. They do but it's unlikely that either side is going to have the measurable impact that they think they're going to have. They're not going to shut down Target. Target is not going to go out of business at the same time Target may miss for example its quarterly earnings forecast if this boycott is successful."

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