ANALYZING THE EFFECT OF INSTAGRAM -BASED BRAND COMMUNITIES ON BRAND LOYALTY

Abstract

The purpose of this study is to show how Instagram-based brand community can affect the elements of customer-centric model (the relation between customer to the brand, product, company and other customers) that use three hypothesis. The end of this reserach shows how all these elements can affect brand trust and brand loyalty. This research used quantitative approach that involved 200 respondents by online. Respondents from this research were Instagram users who had followed the business account (can be said one who had joined Instagram-based brand community) and used or consumed the products from this business account. The hypothesis testing was conducted by simple and multiple regression analysis. The end of this research showed that the Instagram-based brand community had a positive effect on the elements of the customer-centric model (the relationship between customers with brands, products, companies, and other customers) that positively influenced brand trust and ultimately also had a positive effect on brand loyalty.