THE IMPACT OF THE BOYCOTT MOVEMENT IN THE ISRAELPALESTINIAN CONFLICT ON INDONESIANS' PURCHASING DECISIONS TOWARDS STARBUCKS

• Main Author: Graciano Siahaan, Rayner
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83812
• Institution: Institut Teknologi Bandung

The ongoing Israel-Palestinian conflict has sparked global debates and led to consumer boycotts against brands perceived to support Israel, including Starbucks in Indonesia, since there is considerable public support in favor of Palestine. This study examines the influence of the boycott movement related to the Israel-Palestinian conflict on the purchasing decisionof Indonesians when it comes to Starbucks. A quantitative methodology was employed to disseminate surveys to 314 Indonesian consumers, aiming to collect data on their level of awareness and purchasing patterns in relation to Starbucks Indonesia amidst the current boycott movement. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to evaluate the data and investigate the connections between consumer hostility, boycott intents, product judgment, buy intentions, and purchase decisions. The results indicate that a substantial number of consumers are cognizant of the boycott movement and hold the belief that Starbucks endorses Israel, resulting in a considerable proportion expressing a readiness to boycott its merchandise. The behavior is influenced by several key elements, including customer animosity, boycott intentions, product judgment, buy intentions, and final purchase decisions. Social media plays a critical role in creating these attitudes. The study shows that when people have a bad perception of a country's political positions, they are more likely to have negative opinions about a product and be less willing to buy it. This ultimately leads to a decline in sales for Starbucks in Indonesia. This study highlights the significance of ethical considerations and corporate political impartiality in preserving purchase decisions. It offers significant insights to multinational firms on how to manage brand reputation during geopolitical conflicts.