Abstract for: Mechanisms of consumer boycotts: Evidence from the Nestlé infant food controversy
Quality criteria do not only relate to the products mere quality, but to the production and marketing process of the product as well. Customers often express their dissatisfaction with low ethical standards in this area by consumer boycotts. As there are complex relationships between financial aspects and compliance, a system dynamics model is used to unveil causal relationships and explain behavioral patterns. The model highlights the links between a company’s dilemma situation and the effectiveness of a boycott for those demanding different corporate conduct. It also demonstrates possible levers for triggering different behavior.