THE INFLUENCE OF INSTAGRAM ON BRAND EQUITY AND PURCHASE INTENTION OF LUXURY FASHION BRANDS

• Main Author: Shania C. S., Puti
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49427
• Institution: Institut Teknologi Bandung

In the digital era, luxury brands are facing new growth challenges. The rise of technology and communication platforms such as social media has brought significant changes in consumer behavior, market situation, and trend. Contradictory characteristics of social media have caused reluctance and disconnection for luxury fashion brands. Nonetheless, social media has proven its benefits as a platform for marketing. As a result, going digital and the use of social media has become inevitable for luxury fashion brands. Thus, the objective of this research is to investigate the influence of Instagram as a platform of social media marketing on the creation of brand equity and purchase intention and identify which values of luxury would be most suitable delivered through their Instagram posts. To examine this, the researcher conducted a mixed-method approach consisting of a quantitative survey from 200 online participants and content analysis of five of the most followed luxury fashion brands on Instagram. Analysis conducted through PLS-SEM indicates that there is a significant relationship between social media marketing attributes, brand equity, and purchase intention. It is also found that the most engaging luxury values delivered through Instagram's contents are relational, symbolic, and hedonic. The outcome of this research is expected to give insights into the effects of social media marketing, specifically Instagram, on luxury fashion brands' purchase intention, which provides recommendations for future research. Furthermore, findings are expected to be beneficial for luxury fashion marketers in developing content strategies on Instagram as a platform for marketing.