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

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.