Consumer Response to Ethical Information: A Critical Appraisal of Research Objectives and Methodology

RESEARCH APPLICATION IN
GLOBAL BUSINESS

TABLE OF CONTENTS
A. Critical appraisal of research objectives and including an assessment of the way in
which this article fits into existing literature on this subject..................................................1
B. Critical appraisal of research methodology and methods used by the authors..................3
C. Critical evaluation of the research conclusion and applicability of conclusion to
academic understanding in this area of search.......................................................................5
D. Critically evaluating the limitation of study and suggestions for further work................6
REFERENCES...........................................................................................................................1

A. Critical appraisal of research objectives and including an assessment of the way in whichthis
article fits into existing literature on this subject
Within current research and practices, the ethicality of company’s behaviour and various
related concepts are discussed in a deep manner. There is a significant question rises in the mind
set of several authors that whether customers are willing to rewardand punish on the basis of
ethicality or not. Different authors have given distinctresearches about the negative bias in
consumer price response to ethical information.Many authors have discussed their viewpoints
about increasing corporate ethics.They claim that such type of related activities might lead to
decrease the cost of companies and increase the turnover. The paper presented by Moosmayer
(2012) determines that there are various activities of company which targets social and
environmental aim. In this concern, most of the firms are attaining these goals under the label of
corporate ethical performance. However, consumers’ needs are changing day by day and they are
becoming more demanding with the changing time. There is direct and increasing consumer
willingness towards ethically produced goods. According to Moosmayer (2012), most of the
customers respond towards the corporate ethical performance by selecting their particular brand.
However, it helps them in buying greater quantities of paying more. It increases the turnover rate
of companies. There are only fewer and limited studies and investigations on the negativity bias
in consumer willingness to pay.
Moosmayer (2012) in his study found the impact of CEP on consumers’ willingness to
pay. The present study gives appropriate reasoning as if there is any negativity bias in consumer
response towards CEP, it has been identified that their willingness positively increases with
positive CEP whether it decreases with negative CEP or not.
This present articles fits into the existing literature of Lee, Mark and Cho(2015) which
stated that there are different purposes of customers for purchasing different products. On the
basis of their demand and selection of products, they can decide whether they are ready to pay
the existing amount or not. This article is associated with the investigation of customer choices
for purchasing organic coffee by applying approach of Theory of planned behaviour (TPB).
Authors stated that consumer choices are highly influenced by different degrees of ethical
concern and price sensitivity. It is the best way through which better understanding can be gained
about the consumer behaviour related to the growing demands of this organic coffee or any other
latest product. Findings for this study presented that ethical concern and price sensitivity
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