The effect of recover satisfaction, severity and psychological contract violation toward boycott in halal violation incident

Understanding halal violation effect is important as it can harm product through negative behaviors. This study aims to investigate the effect of psychological contract violation (PCV), recovery satisfaction and severity of violation on boycott. Furthermore, this study will also examine the moderating effect of PCV in the relationship between recovery satisfaction and severity of violation on boycott. A total of 212 questionnaires were collected from consumers who were aware and/or had experienced the violation of a halal product in Malaysia. A hierarchical linear regression analysis was used to test the research model. This study found that PCV and recovery satisfaction have a significant influence on boycott. The contribution of this study is obvious as the resulting outcomes can be capitalized as a guideline for managers to design recovery action towards halal violation incident. This study is among the first few attempts towards investigating halal violation and psychological contract violation effect. 2016, Malaysian Consumer and Family Economics Association. All rights reserved.