Abstract

The global issue surrounding products perceived to be affiliated with Israel, following the fatwa issued by the Indonesian Ulema Council (MUI), led to a decline in customer numbers at KFC Solo Baru. Effective issue management strategies are crucial in handling such global issues to prevent company decline. This study aims to explore how KFC Solo Baru's issue management strategy maintains customer loyalty and restores brand image amid the growing KFC boycott issue. A qualitative approach is used to provide an overview of the events that occurred at KFC Solo Baru related to the boycott. Data collection involved in-depth interviews with KFC management and customers, observations, and documentation. The data analysis followed Miles and Huberman's qualitative technique. The validity of the data was tested using source triangulation and method triangulation. The Image Repair Theory by William L. Benoit, which outlines five key factors in image recovery strategies-denial, evasion of responsibility, reducing offensiveness, corrective action, and mortification-was used to analyze the findings. The results indicate that KFC Solo Baru's image repair strategy was not fully effective due to the lack of an approach that resonates with consumers' emotional and moral values, leading to insufficient messaging to change negative perceptions. However, customers remained loyal to KFC due to rationality, habit, convenience, and product innovation.

Keywords

  • Issue Management
  • KFC
  • Customer Loyalty
  • Boycott of American Product

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