Analysis of Audience Reception Regarding the News of the Starbucks Boycott

¹ Department of Communication Sciene, UPN Veteran Yogyakarta, Yogyakarta, Indonesia
² Department of Business Administration, UPN Veteran Yogyakarta, Yogyakarta, Indonesia

^* Corresponding author: author@email.org

Abstract

Boycotts are a powerful form of collective consumer action in response to controversial geopolitical issues. Starbucks, a leading multinational coffee company, is facing a global boycott following allegations that former CEO Howard Schultz financially supported Israel amid escalating violence in Gaza, Palestine. There is a lack of qualitative research examining the public reception and economic impact of such politically motivated boycotts, particularly in emerging markets like Indonesia. This study explores diverse consumer perspectives on the boycott using in-depth interviews and focus groups. Findings reveal a 17.7% decline in sales during the first quarter of 2024, accompanied by a range of sentiments—from moral outrage to skepticism about the efficacy of the boycott—despite Starbucks Indonesia’s clarification that it is not affiliated with Israel’s military funding. By integrating multiple qualitative methods, this study provides nuanced insights into consumer responses in a politically charged environment. These insights underscore the significant impact that consumer action has on corporate policies and emphasize the need for strategic government and corporate responses to increase resilience amidst international socio-political conflict.