Instagram and the Effects of Luxury Goods Marketing: Investigating the Effect of Luxury Brand Advertising on Brand Community Interaction

Objective
In recent years, marketers and luxury brand owners have increasingly shifted their focus to customer-centric social media platforms. These platforms are important in how customers interact with brands, especially in the luxury goods sector. Instagram, which is one of the most popular and widely used social media platforms in Iran and globally, has proven to be a powerful tool for marketing and commercial advertising and has been particularly influential in the luxury goods market. This research aims to investigate the effect of luxury brand advertising on the participation of the brand's target community. Specifically, this study examines several key variables related to Instagram-based marketing efforts, such as customization, trendiness, and engagement. In addition, it addresses the dimensions of luxury brand engagement, which include affective (emotional), cognitive, and behavioral aspects
Research Methodology
This research adopts a practical approach that is descriptive and correlational in terms of research method. Both library (secondary sources) and field (primary sources) methods have been used in combination. The statistical population of this research consists of all Instagram users in Iran, and based on Morgan's table, the sample size was determined to be 384 people, and the sampling method was random. To check the research variables, a standardized questionnaire prepared by Fatais et al. (2013) was distributed among the students of Tehran University, and then the collected data was analyzed using both Excel and SPSS software to obtain meaningful insights.
Findings
The results showed that customization on Instagram has a statistically significant effect on the affective (emotional) dimension of users' interaction with luxury brands, affecting it by approximately 46%, and similarly, it also affects the cognitive dimension, although to a lesser extent ( about 4%). However, its effect on the behavioral dimension of interaction is unclear and cannot be precisely measured. In addition, trending on Instagram has a significant effect on both the emotional and cognitive dimensions of users' interaction with luxury brands, but it did not have a significant effect on the behavioral dimension. Engagement on Instagram has a positive effect on both the affective and cognitive dimensions of luxury brand engagement, however, despite the visible effect on the behavioral dimension, there is no conclusive evidence that customers purchase solely through Instagram. Other channels such as websites or in-person shopping are essential for buying luxury goods.
Discussion & Conclusion
The inferential analysis of research variables shows that Instagram-based marketing activities significantly influence the engagement of luxury brand communities. When interacting with brands on social media, customers can share their experiences, receive feedback, and create emotional connections with brands and other users. These interactions ultimately lead to higher levels of customer satisfaction and contribute to their emotional well-being. Despite the limitations in measuring direct purchase behavior through Instagram, the platform remains a powerful tool for increasing emotional and cognitive engagement with luxury brands. Because Instagram, as one of the most popular platforms, enables businesses to communicate directly with customers and provide the value customers expect. Those who buy luxury items are often more willing to display their goods and help promote luxury products. The visual nature of Instagram allows users to easily share their experiences, receive feedback, and create emotional connections with brands and other users. These interactions not only increase customer engagement but also lead to increased satisfaction and emotional well-being.
The rapid development of information technology around the world, including in Iran, has made electronic commerce a vital part of the global trend. As a result, luxury brands aiming for global reach prioritize online marketing and sales, and platforms such as Instagram are ideal for brand advertising and marketing. The results of the inferential analysis of this study show that Instagram marketing activities positively affect brand community engagement. Specifically, the impact of variables such as customization, contractuality and interaction on the emotional, cognitive and behavioral dimensions of the target community's participation was investigated. Personalization affects emotional and cognitive aspects and helps brands provide better service and avoid irrelevant offerings, increasing customer satisfaction. This process has a positive effect on emotional and cognitive dimensions. In line with previous studies such as those of Gursoy and Lu (2020), which emphasize the role of social media marketing in increasing customer satisfaction and engagement.
Despite its limitations in measuring direct purchase behavior, Instagram is a powerful tool for increasing engagement with luxury brands. The platform allows users to immerse themselves in the luxury experience and create emotional connections that may influence future purchase decisions. Consequently, while Instagram may not directly convert followers into customers, its ability to increase brand awareness and loyalty cannot be underestimated.
Liu et al. (2023) also found that engagement on social media, especially for luxury brands, is crucial to increase customer engagement with brand-related content. Investing in entertainment, engagement and trend-driven content on social media is essential for luxury brands. Instagram is a very effective platform for introducing luxury brands in the global market. To succeed, luxury brands must prioritize Instagram as a key advertising medium to gain attention and increase sales.
Another important point in this research is the distinction between luxury marketing and marketing for other types of products. Because luxury items are expensive, they attract a specific and limited clientele. Selling luxury goods is distinctly more challenging than selling mass-market items because luxury goods customers are very selective and value trust, exclusivity, and quality above all else. Building trust with these customers is very important, especially in the online market, where the authenticity and quality of products must be ensured. This research also showed that in the marketing of luxury goods, credibility and trust are essential for customer retention. Brands must ensure that customers are confident about the authenticity and timely delivery of their luxury purchases. Additionally, providing a seamless and beautiful online shopping experience, much like a luxury physical boutique, is critical to maintaining customer trust and satisfaction.
In conclusion, this study shows the effectiveness of Instagram-based marketing in promoting luxury brands. Although it may not directly affect immediate purchases, it significantly increases emotional and cognitive engagement, leading to stronger relationships between the customer and the brand. This ultimately increases brand loyalty and brings about long-term success for the business as a result. To further improve engagement and brand awareness, luxury brands must invest in content that resonates emotionally and fosters meaningful interactions with their audience.