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Understanding Consumers’ Response to Controversial Investments: The reactions and subsequent implications in the empirical case of Oatly’s consumers

Emidi, Christian LU and Galan, Sebastian LU (2021) IBUH19 20211
Department of Business Administration
Abstract
Globalisation has expanded investors’ financial reach and while most investments occur
without much attention, some lead to disagreements and divergent responses from consumers.
Therefore, this paper aims at providing a comprehensive picture of consumers’ responses
following investments that become a matter of controversy. This research problem was
addressed through the case of Oatly’s consumers’ response to the company’s decision of
approaching the firm Blackstone for an investment.
The research problem has been discussed within the context of ethical consumerism, and the
theories used are psychological contract theory and attribution theory. Through semi-structured
interviews and secondary data in the form of social media... (More)
Globalisation has expanded investors’ financial reach and while most investments occur
without much attention, some lead to disagreements and divergent responses from consumers.
Therefore, this paper aims at providing a comprehensive picture of consumers’ responses
following investments that become a matter of controversy. This research problem was
addressed through the case of Oatly’s consumers’ response to the company’s decision of
approaching the firm Blackstone for an investment.
The research problem has been discussed within the context of ethical consumerism, and the
theories used are psychological contract theory and attribution theory. Through semi-structured
interviews and secondary data in the form of social media comments, we have generated data
that was analysed through thematic analysis.
Our findings suggest that the harsh reaction displayed by consumers could be understood as a
psychological contract breach exacerbated by the weight put on the selfish motives perceived
to be driving such decision. On the other hand, the more moderate reactions suggests that a
psychological contract could have been fulfilled or that a breach was not perceived. At the same
time, it is possible that a psychological contract was absent in the first place. Furthermore, the
context in which the decision was taken was considered important. While harsh reactions tend
to lead to detrimental implications, moderate reactions lead to beneficial ones.
Our findings have both theoretical and practical contributions. Regarding the former, we have
applied the theories in a relatively new context in which they have been both useful and
challenged to some extent. The practical implications involve an increase in understanding of
the consequences following an investment that could be perceived as controversial. This could
be worth considering for businesses when approaching such a decision. (Less)
Please use this url to cite or link to this publication:
author
Emidi, Christian LU and Galan, Sebastian LU
supervisor
organization
course
IBUH19 20211
year
type
M2 - Bachelor Degree
subject
keywords
investment, controversy, psychological contract theory, attribution theory, ethical consumerism, consumer behaviour
language
English
id
9048852
date added to LUP
2021-06-24 14:59:05
date last changed
2021-06-24 14:59:05
@misc{9048852,
  abstract     = {{Globalisation has expanded investors’ financial reach and while most investments occur
without much attention, some lead to disagreements and divergent responses from consumers.
Therefore, this paper aims at providing a comprehensive picture of consumers’ responses
following investments that become a matter of controversy. This research problem was
addressed through the case of Oatly’s consumers’ response to the company’s decision of
approaching the firm Blackstone for an investment.
The research problem has been discussed within the context of ethical consumerism, and the
theories used are psychological contract theory and attribution theory. Through semi-structured
interviews and secondary data in the form of social media comments, we have generated data
that was analysed through thematic analysis.
Our findings suggest that the harsh reaction displayed by consumers could be understood as a
psychological contract breach exacerbated by the weight put on the selfish motives perceived
to be driving such decision. On the other hand, the more moderate reactions suggests that a
psychological contract could have been fulfilled or that a breach was not perceived. At the same
time, it is possible that a psychological contract was absent in the first place. Furthermore, the
context in which the decision was taken was considered important. While harsh reactions tend
to lead to detrimental implications, moderate reactions lead to beneficial ones.
Our findings have both theoretical and practical contributions. Regarding the former, we have
applied the theories in a relatively new context in which they have been both useful and
challenged to some extent. The practical implications involve an increase in understanding of
the consequences following an investment that could be perceived as controversial. This could
be worth considering for businesses when approaching such a decision.}},
  author       = {{Emidi, Christian and Galan, Sebastian}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Understanding Consumers’ Response to Controversial Investments: The reactions and subsequent implications in the empirical case of Oatly’s consumers}},
  year         = {{2021}},
}