MODERATING FACTORS AFFECTING BRAND LOYALTY IN BOYCOTTS OF ISRAEL-AFFILIATED BRANDS

• Main Author: Nurdiani, Anggi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/82841
• Institution: Institut Teknologi Bandung

This study investigates the influence of brand loyalty on Indonesians' decisions to boycott brands associated with Israel. The research is contextualized within the longstanding conflict between Palestine and Israel, which regained global prominence after a significant incident in October 2023. This resurgence in attention has fueled widespread calls for boycotts against Israel-affiliated brands. This study aims to understand the complex dynamics between brand loyalty and boycott actions, providing insights into how consumers' attachment to brands interacts with their political and social convictions. Employing a mixed-method approach, the study began with qualitative interviews to validate the research framework and identify additional variables or questions for the quantitative phase. These interviews provided a deeper understanding of the respondents' motivations and perceptions, which were crucial for refining the survey instruments. Following the qualitative phase, quantitative surveys were conducted to test the hypotheses developed from the interview insights. Data were collected from 546 respondents through online surveys, ensuring a diverse and representative sample of the Indonesian population. The quantitative data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM), a robust statistical technique suitable for complex models and exploratory research. The findings reveal that brand loyalty significantly negatively impacts boycott actions, indicating that consumers with strong brand loyalty are less likely to participate in boycotts against these brands. This suggests that emotional and habitual attachments to a brand can override political and social motivations to engage in boycott actions. Additionally, the study examined the moderating effects of animosity, subjective norms, perceived efficacy, and counter-arguments on the relationship between brand loyalty and boycott actions. Results show that perceived efficacy significantly moderates this relationship. Consumers who believe in the effectiveness of their boycott actions are more likely to participate in boycotts, even if they have a high level of brand loyalty. This finding underscores the importance of perceived efficacy in motivating consumer behavior in political and social contexts. On the other hand, animosity, subjective norms, and counterarguments do not significantly influence the relationship between brand loyalty and boycott actions. This indicates that while negative feelings towards Israel and social pressures to boycott may exist, they do not substantially alter the impact of brand loyalty on boycott behavior.