Building a Luxury Brand on Instagram: The case of Delvaux

Résumé 0

This case study examines Delvaux’s Instagram marketing activities using Kim and Ko’s (2012) conceptual framework of five dimensions of social media marketing activities, namely entertainment, interaction, trendiness, customization, and word of mouth. More specific, based on a survey among 195 luxury consumers, a structural equation model is developed to explore how each of these dimensions affect customer brand equity and purchase intentions. Specifically, the study demonstrates a positive impact of trendiness, entertainment and word of mouth on customer brand equity. Moreover, entertainment and word-of-mouth enhance purchase intention, while trendiness had a significant negative effect on purchase intention. Furthermore, it was found that the effect of consumer’s overall impression of Delvaux’s Instagram marketing activities on purchase intention is partly mediated by customer brand equity. These findings suggest that luxury brands’ investments in Instagram could have significant positive effects on customer brand equity and consequently purchase intention and thus provide further support for social media marketing as an important and cost-effective marketing tool for luxury brands in the digital age. JEL codes: M30, M31