The Ethical Judgment to the Product-Harm Crisis: Evidence from Pakistan

Aasir Ilyas,Walied Askarzai

doi:10.6007/ijarbss/v9-i6/6049

Abstract

The study was conducted by evaluating the ethical judgment and product harm crises among the students in the public sector universities in Peshawar city-Pakistan. The study has taken the products of tetra pack juices in Peshawar i.e. Nestle, Maaza, etc. The study will be significant for the policymakers to control the market for especially to supply the quality product in the market. The issues related to the product harm crises sometimes lead to negative behavior shown by the consumers in the market towards the specific products. The study was conducted among the public sector universities and the students enrolled in these universities were taken as the population of the study. Based on stratified sampling (proportional allocation method) the study included 250 sample students for the data collection. The study has adopted a semi-structured closed-ended questionnaire for the questionnaire. The used regression model for data analysis. The findings of the reliability test used showed that the items included in the study data collection instrument have been found reliable and valid. The findings of the regression model showed that perceived crises severity has a significant effect on contempt while perceived crises relevance has insignificant; product knowledge has a significant moderating role between perceived crises severity, perceived crises relevance, and contempt. Perceived crisis relevance and perceived crises relevance have significant effects on anger; product knowledge has a significant moderating role between perceived crisis severity, perceived crises relevance, and anger. It has been recommended that the firms should keep a strong check and balance so that low-quality products might not enter into the market.

Highlights

Crises are events that are difficult for a company to avoid
The results suggested that perceived crises severity and crises relevance have a 55 percent relationship with contempt while they have 31 percent effects on the contempt as the R-square value suggested
The findings argued that perceived crises severity has a significant effect while crises relevance having insignificant effects on contempt

Summary

Introduction

Crises are events that are difficult for a company to avoid. The types of crises are numerous, varying from ‘small-scale organizational issues’ to grave crises caused by external factors, such as earthquakes and fires, and may happen to any company at any time. Managers should be effectively prepared to deal with crises. This preparation may include the development of a suitable communication strategy (Hale et al, 2005). Product-harm crises, which are connected to defective or even dangerous products, are among the most common threats to a company. They can be defined as a sudden break in a product's life cycle, caused by problems such as the manufacturer's negligence or product misuse. Product recalls are one of the possible ways a company can confront such crises (De-Matos and Rossi, 2007). Despite the disturbing impact of product-harm crises, little systematic research has focused on consumer reactions or their marketing consequences

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