HOW BOYCOTT PARTICIPATION OF CUSTOMERS IN INDONESIA INFLUENCE THE BRAND IMAGE AND PURCHASE DECISION OF MCDONALD AND STARBUCKS

• Main Author: Syauqi, Ahmad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83824
• Institution: Institut Teknologi Bandung

This study investigates the impact of consumer boycott participation on the brand image and purchase decisions of McDonald's and Starbucks in Indonesia, driven by their perceived support for Israel during the Israel-Hamas conflict. Utilizing a sample of 284 respondents (178 for McDonald’s and 106 for Starbucks), the research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the data. Findings reveal that while boycott participation does not significantly alter brand image, it substantially influences purchase decisions. The demographic profile shows a predominant participation from young, female consumers, highlighting a significant socio-political awareness within this group. Descriptive statistics indicate a moderate to negative brand image and low purchase decision scores for both brands, exacerbated by strong boycott sentiments. Recommendations for McDonald’s and Starbucks include enhancing Corporate Social Responsibility (CSR) initiatives, engaging with consumers through digital platforms, and developing robust crisis management strategies. Additionally, for brands not yet targeted by boycotts, proactive monitoring of social trends and emphasizing ethical practices are advised. This study underscores the importance of understanding consumer behavior in politically sensitive contexts and offers strategic insights for brands to navigate such challenges effectively.