Journal of Distribution Science (유통과학연구)

Korea Distribution Science Association (한국유통과학회)
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Distribution of Advertisement on Instagram in Relation to Satisfaction and Loyalty of Low-Cost Airline Passengers in Indonesia

  • Fatimah Febriyanti, BASTARI (Communication Department, Strategic Marketing Communication, BINUS University) ;
  • M., ARAS (Communication Department, Strategic Marketing Communication, BINUS University) ;
  • Cici Fakhrunnisa, SOFYAN (Communication Department, Strategic Marketing Communication, BINUS University) ;
  • Taniya Indriana, RUSTAM (Communication Department, Strategic Marketing Communication, BINUS University)
  • Received : 2023.01.10
  • Accepted : 2023.03.05
  • Published : 2023.03.30
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Abstract

Purpose: Low-Cost Carrier airlines attempt to provide the best service for their customers. However, the pandemic has forced airline companies to keep developing new strategies. Moreover, in this digital era, airlines must intensely market their service through social media to reach as many customers as possible. This research aims to study the impact of advertisements on Instagram and the customer experience concerning customer loyalty and satisfaction in the aviation industry. Research design, data, and methodology: This study uses a quantitative explanatory with the combination of the positivism paradigm. The data collection technique is by distributing questionnaires to related airline Instagram followers. Meanwhile, the sample calculation uses using the Slovin formula in which 414 respondents are gained. The collected data is analyzed with Structural Equation Model and using Smart-PLS software. Results: The study results indicate that advertising on Instagram and customer experience significantly positively affect customer satisfaction and loyalty. In addition, the variable customer satisfaction has a significant positive on customer loyalty. Conclusions: The study results indicate that the ease of obtaining information via Instagram can affect satisfaction and will increase when customers have made a flight so that they will become loyal customers.

Keywords

1. Introduction

The aviation industry is increasingly competitive with the presence of new airlines. Three new airlines have emerged in Indonesia within one year, both full-service and low-cost carrier airlines (Ardini et al., 2022). Every airline competes to provide the best service for prospective passengers. Southeast Asia has been the second-largest country contributing to air traffic in the last decade, with an increase of 10% annually and receiving more than 25% of new aircraft deliveries (Foong et al., 2023).

The pandemic since the end of 2019 has caused a recession in the world. It certainly impacts the aviation industry since airlines must cancel all flights except for repatriation activities (Kungwola et al., 2022). Moreover, since the pandemic is unexpected, airlines must pay full attention to their passengers to implement unique strategies in the post-pandemic recovery period (Wang et al., 2022).

PT Citilink Indonesia is a Garuda Indonesia subsidiary founded in 2001. Citilink has the award of a 4-star low-cost airline version of the Airline Passenger Experience. In 2022, Citilink won the Top 6 Best Low-Cost Airlines in Asia and the Top 100 World's Best Airlines awards from Skytrax.

Low-cost airlines only focus on serving basic air transportation functions. The opposite of full-service airlines (Shen & Yahya, 2020). The presence of low-cost airlines is to help people travel at affordable prices. This is an airline's effort to save operational costs (Schlumberger & Weisskopf, 2014). For full-service airline customers, price is not a problem (Farooq et al., 2018).

Passengers of low-cost airlines are increasing because airlines are intensively opening new domestic and international routes (Kim & Sohn, 2022). Several studies state that the recession of the aviation industry is temporary. After the Covid-19 pandemic, it will recover through the cargo sector, followed by the passenger sector (Li, 2020; Wang et al., 2021). The travel ban policy is to reduce the spread of the Covid-19 virus (Tanriverdi et al., 2020). Recovery in the aviation industry may take four to six years (Sobieralski, 2020).

In this digital era, the standard of service quality has increased. Moreover, airlines also increase promotion through social media to avoid losing potential passengers. In addition due to rapid technological developments, digital marketing is important to expand the target market. Therefore, marketers use social media to get customers because it is considerably more effective (Chen &Qasim, 2020). As a result social media has become a part of aspects of human life (Alalwan, 2018).

In this era of technology, it is easy to find information regarding airline services, including prices and other benefits. Therefore, customers can compare everything before purchasing (Soomro et al., 2022). The loyalty of customers is impacted by several factors and elements. The company may have provided the best service, but this is not enough (Rizan et al., 2020).

Instagram is a social media that has developed rapidly since 2010 under Facebook, which provides photo and video-sharing services and has like and comment features (Carroll, 2017). Customers have a stake in providing feedback to, advertising and marketing. Companies can determine nano targets according to customer criteria (Alaimo, 2017).

The way to communicate and establish relationships with customers has undergone rapid and significant changes in the current era, primarily through social networks, which are considered far more effective. On the other hand, companies must provide the best service and design their social networks to be accessible to customers, so they do not experience difficulties (Blazheska et al., 2022).

Customers feel happy if the content visually and textually has an emotional and informative connection. Therefore, they will like and leave comments on the post (Rietveld et al., 2020). Furthermore, marketing via Instagram also influences customer preferences and loyalty (Khan, 2018).

Research by Chen and Qasim (2020) on social media marketing variables using indicators of Interactivity, Informativeness, Personalization, Trendiness, and Word-of-Mouth shows significant positive results on brand love. The results reveal that Chinese consumers feel an emotional bond when a brand is popular, trendy, informative, interactive, and personalized in its marketing activities.

Based on previous research, which shows significant results, the researchers want to find out how the distribution of advertisements on Instagram can affect customer satisfaction and loyalty of low-cost airline customers in Indonesia.

If marketers have succeeded in influencing their customers, these customers will make purchases and get an experience. Customer experience is an important and competitive element constantly evolving to provide distinct advantages for the company (Klink et al., 2018). Customer experience significantly positively affects customer loyalty (Yadav & Rahman, 2018).

Customer response and service from a company is the most important thing for creating a good customer experience. Indeed, every customer has a different experience depending on the services provided by the company (Roggeveen & Rosengren, 2022). A memorable experience, and a positive attitude, will certainly motivate others to decide to purchase (Park & Lin, 2018). This is also based on customer experience, which provides opportunities to interact in a group (Singh et al., 2022).

Research by Kim and Yim (2020) states that customer experience has a significant positive effect if customers get good service before and after a purchase. Similarly, research by Mustikasari et al. (2021) states that customers who get a good experience from receiving good service and purchasing products will feel satisfied. Based on these two studies, this research wants to determine whether customers who fly with this airline will get a good experience, thus affecting customer satisfaction and loyalty.

According to Buttle (2009), companies need to satisfy customers by creating an unforgettable experience so that customers can be loyal to the company. In line with research by Setiawan et al. (2021), customer satisfaction affects customer loyalty.

One way to show customer loyalty is by having a membership card. Passengers still consider the advantages and disadvantages of having membership cards because the benefits received can differ from one another (Mantey & Naidoo, 2017). The advantages of owning a membership card include discounted rates, upgraded seats from economy class to business class, access to airport lounges, and other priorities (Gao et al., 2018).

Furthermore, research by Zaid and Patyawati (2021) reveals that customer satisfaction positively affects customer loyalty. This comes from the customer experience and customer involvement factors. Research also shows that customer satisfaction affects customer loyalty. Customers feel satisfied when a company can overcome problems and has a good image.

This study has a distinct focus related to social media marketing for low-cost airlines in Indonesia. It uses an explanatory quantitative approach and four variables, including advertising variables on Instagram, customer experience, customer satisfaction, and customer loyalty.

2. Literature Review

2.1. Distribution of Advertising on Instagram

Instagram is a social media that is very easy to operate. Both women and men can use it even though they have different preferences and functions (Al-Kandari et al., 2016). Social media is an interactive channel full of possibilities for enhancing the audiovisual presentation of products and services, increasing user control over the advertising experience, and offering more attractive forms of digital advertising than traditional media (Li & Lo, 2014). Advertising is important to increase sales and elevate a brand's product or service in the market (Gao K.-C. W.-T., 2016).

Social media usage in an organization or company is divided into two perspectives. Firstly, the factors that influence the use of social media, are technological, organizational, environmental, and individual factors. Secondly, it is seen from the factors that can affect satisfaction and performance (Dantas et al., 2022). In line with research conducted by Nduhura and Prieler (2017), the use of social media is very effective and has potentially been successful in promoting the company's business by providing the best service for its customers through information-sharing content.

Research by Gunarathne et al. (2015) shows that an airline's social media only responds to accounts that have high popularity, such as celebrities or influencers. Based on previous research, social media such as Twitter can be used to increase customer insight in assessing a service provided by the airline (Monmousseau et al., 2020).

Marketing through social media produces positive things in brand equity, for example, loyalty, brand trust, and sharing experiences with brands (Nikolinakou & Phua, 2019); (Yadav & Rahman, 2018). The S-O-R model supports this. The Stimulus-Organism-Response (S-O-R) model shows that cognitive and affective processes influence changes in the external sphere. Stimulus (S) acts as an external push that can affect a person's internal condition, organism (O) becomes an intermediary between stimulus and decisions taken at the end, and response (R) is the final result or decision (Wang et al., 2018).

Advertisements using videos are more attractive to the audience because the messages are easier to understand (Li & Lo, 2014). The strength of a social media marketing strategy lies not in image classification and analysis but in using text-based analysis. The most effective way is using hashtags (Bernardi & Alhamdan, 2022).

2.2. Customer Experience

The concept of customer experience first appeared in the mid-1980s, including literacy in consumer behavior. Customers are rational decision-makers, with a new experiential approach that provides a way to view consumer behavior (Majra et al., 2016). In addition, customer experience also pays attention to the service aspects of a brand, what the service process is like, and what providers, and offers are provided (Jaakkola et al., 2015).

Customer experience is a customer journey with a company before to after the transaction (Lemon & Verhoef, 2016). The customer experience is personal, which is the accumulation of each interaction with the company in the sales cycle (pre-sale, sale, and after-sale) (Mahrous & Hassan, 2016).

The concept of customer engagement is a pyramid where the bottom part, customer experience, is crucial to reach the top. Next, the middle part is an emotional relationship based on goals and values. Furthermore, the top part is shared identity (Grewal et al., 2017). Collecting data regarding customer perceptions and experiences can be done by looking at customer reviews from TripAdvisor (Zhao et al., 2019). The good or bad customer experience is mainly influenced by the service provided by employees (Lagiewski & Perotti, 2022).

The customer experience has three phases, which: before purchase, during purchase, and after purchase. Furthermore, the customer experience differs when customers purchase for the first time and those who have made repeated purchases (Siebert et al., 2020). Customer experience measurements are emotional, cognitive, sensorial, and conative (Godovykh & Tasci, 2020).

2.3. Customer Satisfaction

Customer satisfaction acts as an emotional response, which results from a cognitive process of evaluating the service received against the price obtained from a service (Park et al., 2019). Customer satisfaction is important in every sector. Which determines whether the customer will make repeated purchases of products or services (Corte et al., 2015). In aviation, service quality affects customer satisfaction since it supports the continuation of this business sector (Saadat et al., 2018).

Customers can feel satisfied with a product or service if the quality of service they get is good. Research shows that service quality positively affects customer satisfaction (Gong & Yi, 2018). Customer satisfaction will also increase if a company focuses on customer orientation by providing different service styles and has good relationship management with customers (Nguyen et al., 2021).

A marketing study states that customer satisfaction is the main determinant of these customers being loyal (Kim & Park, 2019). Customer satisfaction arises when their expectations of the airline service are met, so they get a good experience. Of course, these customers will decide to use the same airline again in the future (Pereira et al., 2016).

Customer satisfaction in online retail measurements are order fulfillment, website friendliness, and product variety choices (Pandey et al., 2019). Meanwhile, another research by Zaid et al. (2021) measured customer satisfaction with distribution costs, transit time, payment methods, and information technology.

2.4. Customer Loyalty

Customer loyalty is a commitment between a customer and a brand or service provider that causes customers to repurchase (Chanpariyavatevong et al. (2021). In the business context, loyalty is a form of customer willingness for a company to continue using its product or service in the long term and will recommend it to other colleagues (Wirtz & Lovelock, 2016).

Every business naturally expects loyal customers since it is a strong connection of commitment between customers and companies over the long term (Zaid et al., 2021). In the aviation industry, customer loyalty is through the ownership of a membership card or frequent flyer program, a reward program for customers who make repeated purchases of services from an airline (Pappachan, 2021).

If an airline wants to maintain customer loyalty, they have to know what the needs and wants of customers are so that they feel satisfied (Chen & Liu, 2017). Customer satisfaction can create loyalty, which is essential (Briliana, 2018).

The Frequent Flyer Program can be used as a reference for measuring the relationship between customers and companies. Corporate marketers can also use these strategies for marketing and establishing relationships with customers (Zuo et al., 2017). The airline's membership will get points when customers book flights. Later, these points can be redeemed according to applicable regulations (Anant, 2022).

Customers who have a bad experience and decide to complain can feel satisfied and decide to become loyal customers as long as the company has the right complaint-handling system (Morgeson et al., 2020).

Customer loyalty in the airline industry, especially low-cost airlines, can be seen from customer behavior that looks at the services offered by the airline (Hassan & Salem, 2021). Research results support this by Hasan et al. (2019), which show a positive relationship between the five dimensions of service quality and customer loyalty, which strongly affects customer satisfaction.

3. Research Methods and Materials

3.1. Research Model and Hypothesis

This study aims to determine the effect of distribution of advertising on Instagram and customer experience on low-cost airline customer satisfaction and loyalty in Indonesia. Based on the explanation above, the following is the research framework.

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Figure 1: Research Framework

Based on this research, several hypotheses are:

H1: Advertising on Instagram has a significant effect on Customer Satisfaction.

H2: Advertising on Instagram has a significant effect on Customer Loyalty.

H3: Customer Experience has a significant effect on Customer Satisfaction

H4: Customer Experience has a significant effect on Customer Loyalty.

H5: Customer Satisfaction has a significant effect on Customer Loyalty.

3.2. Data Gathering Procedures

This study uses the positivism paradigm. Positivism is a philosophy of science that argues that a properly constructed theory can be rigorously verified by empirical data or even falsifiable (Littlejohn & Foss, 2009). The positivism paradigm in this study serves to find out about the facts, causes, and effects of a phenomenon objectively.

This type of research is explanatory quantitative with survey methods. Creswell (2009) mentioned that a survey design provides a quantitative or numerical description of a population's trends, attitudes, or opinions by studying a population sample.

The population is paall people or items that fit and understand the research criteria (Rahi, 2017). The population in this study was taken from the number of @citilink Instagram followers, which are 402,000 accounts (as of June 2022). The sampling technique in this study was purposive sampling. The purposive sampling technique is limited to an intended group according to predetermined criteria (Sekaran & Bougie, 2016). Determining the number of samples in this study was using the slovin formula.

Therefore, the number of respondents in this study is 414, with the criteria of men and women aged 18-65 years, airline Instagram followers, and having flown in the last six months. The data collection technique is by distributing questionnaires using Google Forms.

The SEM method is used simultaneously to explain several variable relationships using a visual model (Dash & Paul, 2021). Then, the data are processed using Smart-PLS 3.0 to test the hypothesis. The testing includes the outer model, inner model, and path analysis.

3.3. Unit Analysis

This study has four variables: Distribution of Advertising on Instagram, Customer Experience, Customer Satisfaction, and Customer Loyalty. The questionnaire format was measured using a Likert scale. Respondents chose answers according to the experience gained before and after flying with the airline. The unit of analysis in this study is Citilink Indonesia’s airline passengers.

This study has three types of variables: independent variables, dependent variables, and moderating variables. The independent variables are Distribution of Advertising on Instagram (X1) and Customer Experience (X2). The dependent variable is Customer Loyalty (Y). Meanwhile, the moderating variable is Customer Satisfaction (Z). This research instrument uses a Likert scale with five points, such as 1. Strongly Disagree, 2. Disagree, 3. Neutral, 4. Agree, and 5. Strongly Agree.

3.4. Dimension of Analysis

This section shows the dimensions and indicators used in this study following the theoretical and conceptual foundations obtained. The dimensions of the analysis for each variable are in Table 1.

Table 1: Dimension of Analysis

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Note: Research Indicators

4. Results and Discussion

4.1. Descriptive Analysis

Based on the acquisition of data from 414 respondents, 36.2% of the respondents are male, and 63.8% are female. Furthermore, in terms of the age of the respondents, 80.4% are 18-25 years old, 14.3% are 26-33 years old, 3.9% are 34-41 years old, 0.7% are 42-49 years old, and finally, respondents with an age range of 58-65 years old are 0.7%. Based on the educational background of the respondents, 45.4% have a bachelor's degree, and 26.1% have a high school or equivalent degree. It is followed by 19.6% having a postgraduate degree (Master’s Degree), and only 8.9% of respondents have a diploma education background.

Next, all respondents, or 100% are airline Instagram followers and have flown in the last six months.

4.2. Evaluation of Measurement Model

The first step is testing convergent validity, composite reliability, and discriminant validity.

4.2.1. Convergent Validity

A validity test is to measure and test whether the questionnaire is valid or not. The research instrument is said to be valid if the questions on the questionnaire can answer the measured variables. The data is valid if the loading factor is > 0.5 and can use the obtained AVE value.

Based on the test results, the AVE value of Advertisement on Instagram (X1) is 0.654, Customer Experience (X2) is 0.584, Customer Loyalty (Y) is 0.785, and Customer Satisfaction (Z) is 0.719. Therefore, the AVE values are > 0.5 so that the variables are valid. In addition, the loading factor ranges from 0.712 to 0.899. Then it can be ensured that convergent validity is achieved.

4.2.2. Composite Reliability

Composite reliability uses a reflective model to measure convergent validity. Reliability measurement uses Cronbach Alpha value > 0.6.

Based on the test results, the Cronbach alpha value of Advertisement on Instagram (X1) is 0.869, Customer Experience (X2) is 0.822, Customer Loyalty (Y) is 0.863, and Customer Satisfaction (Z) is 0.804. Thus, all variables in this study are reliable.

4.2.3 Discriminant Validity

Discriminant Validity describes that the existing constructs differ from empirical studies, and discriminant validity is from Fornell-Larcker Criterion. Based on the test results, all variables have a significant influence on other variables. The highest relationship is between loyalty and loyalty, with a value of 0.886, while the lowest relationship is between Customer Experience and Advertisement on Instagram with a value of 0.776.

Table 2: Cronbach Alpha and AVE

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Table 3: Fornell-Larcker Criterion

OTGHB7_2023_v21n3_13_t0003.png 이미지

OTGHB7_2023_v21n3_13_f0002.png 이미지

Figure 2: Smart PLS Model

4.3 Evaluation of Structural Model

The results of this study are processed using Smart PLS 3.0 with Structural Equation Model. To assess the structural model using PLS, the first step is looking at the Rsquare value of each endogenous latent variable as the predictive power of the structural model.

Table 4: Rsquare

OTGHB7_2023_v21n3_13_t0004.png 이미지

Based on the test results, the Rsquare of customer loyalty is 0.777 or 77.7%, which is influenced by distribution of advertising on Instagram, customer experience, and customer satisfaction.

Furthermore, the Rsquare of customer satisfaction is 0.709 or 70.9% influenced by the advertising on Instagram and customer experience.

Based on table 5, Distribution of Advertising on Instagram (X1), Customer Experience (X2) significantly affect Customer Satisfaction (Z) and Customer Loyalty (Y). Furthermore, Customer Satisfaction (Z) has a significant positive effect on Customer Loyalty (Y)

Table 5: Hypothesis

OTGHB7_2023_v21n3_13_t0005.png 이미지

4.4. Discussion

This research finds or predicts the effect of distribution of advertising on Instagram and customer experience on customer satisfaction and loyalty at low-cost airlines in Indonesia. Based on the hypothesis testing results, two variables affect customer satisfaction, and three variables affect customer loyalty.

Nowadays, airlines must digitally transform to reach wider customers and create loyal customers. Research by Kıyıklık et al. (2022) states that insightful business analytics make forecasted trends, prevent crises, and open new channels.

Distribution of Advertising on Instagram has a significant positive effect on customer satisfaction. These results are obtained from the tcount value, which is greater than ttable, and from the statement on the questionnaire, "Citilink Instagram facilitates personalized information". This shows that the information displayed through Instagram can meet customers' information needs. It is also supported by one of the advertising indicators on Instagram, which is informativeness. Informativeness is related to the degree to which social media offers accurate, useful, and comprehensive information. In addition, the personalization indicator is the extent to which social media offers services that can adjust to meet customer preferences (Yadav & Rahman, 2018).

These results align with research conducted by Alves et al. (2016), which states that most research has focused on analyzing consumer perspectives in social media marketing to see how consumers react to channels companies provide and efforts to establish good relationships. Research by Wang et al. (2018) shows a positive effect on the informativeness indicator. Respondents like informative marketing messages, attractive images, and interactive communicative social media.

Furthermore, the results show that distribution of advertising on Instagram significantly positively affects customer loyalty. One statement on the questionnaire “Citilink Instagram invites its followers to share their flying experiences” supports these results with an answer “strongly agree”.

Customers who are satisfied with getting information via Instagram and have already made flights with Citilink. Therefore, when the opportunity arises to share their experiences, they do not hesitate to share them via Instagram.

The results of this study are in line with research conducted by Khan (2018). Khan (2018) state that advertising on Instagram significantly positively affects customer loyalty. Airlines must interact more with customers by responding to or re-uploading Instagram stories to increase customer loyalty through social media. The customer will feel appreciated and continue to fly with the airline in the future.

When Instagram airlines take an enthusiastic approach to customers, including re-uploading Instagram stories containing the customer’s flying experience, the customer feels appreciated. As a result, they are likely to become loyal customers.

Customer experience has a significant positive effect on customer satisfaction and customer loyalty. This is supported by the indicators that get the highest scores, which are the Think indicator with the statement “I gave an idea for Citilink content” and the Act indicator with the statement “Citilink services attracted my attention to have a membership card”. It can be seen from those statements if customers experience good flying service, then they will provide suggestions for the airline's social media content. This is a form of customer loyalty because they are satisfied and then register for a membership card.

This study's results align with the research of Zaid and Patyawati (2021), which shows that the results of customer experience have a significant positive effect on customer satisfaction by providing emotional and cognitive experiences for consumers. Therefore, they can rationalize their involvement in e-retailers, increasing satisfaction and loyalty.

Research from Setiawan et al. (2021) also shows that customer experience significantly positively affects customer satisfaction. This is reinforced that customers are delighted to fly with Citilink Indonesia. Another factor is ticket prices are still affordable. Likewise, customer experience, which influences customer loyalty, is obtained from the indicators of understanding, knowledge, and pleasure, which have the highest coefficient values.

The selection of low-cost airlines is based on two factors, which are price and subjective norms. Based on Asian culture, people tend to ask for recommendations from relatives or families who have used the airline. If the recommendation results are good, it will affect attitudes (Truong et al., 2020).

Customer satisfaction has a significant positive effect on customer loyalty. Customer satisfaction on customer loyalty is obtained from the questionnaire statement "Citilink extends the validity period of LinkMiles membership". This makes customers happy because the airline automatically extends the membership card period. This study's results align with research by Nguyen et al. (2021) and Dam and Dam (2021), which show that customer satisfaction has a significant effect on customer loyalty. Regarding customer satisfaction at low-cost airlines from Malaysia, customers like food service and ground staff. Therefore, the airlines make efficient operational activities such as retaining hardworking and skilled employees and providing better food service (Saadat et al., 2018).

In this study, out of 400 respondents, only 285 respondents have the frequent flyer program (LinkMiles), or the equivalent of 71.3%. Customers who are satisfied with airline services and still fly with Citilink do not necessarily register themselves with the membership card. There will be many underlying factors, that require further research by interviewing airline passengers who do not have membership cards.

5. Conclusions

In conclusion, based on the research and discussion results, distribution of advertising on Instagram can influence customer satisfaction and customer loyalty. However, customer experience and customer satisfaction can affect customer loyalty. The results of this study are processed using Smart-PLS 3.0 with Structural Equation Model. Distribution of Advertising on Instagram and customer experience significantly affect customer satisfaction. Customers feel that advertising on Instagram can meet their information needs regarding the airline, and the airline has provided advertising content according to current conditions. Therefore, after getting information via Instagram and the customer choosing to fly and get a good experience from the services offered, the customer will feel satisfied with the airline.

The results of further research indicate that customer experience and satisfaction significantly affect customer loyalty. Customers who feel the experience of flying with the airline is good and by their expectations will be satisfied. Furthermore, if they feel satisfied, they will use the service repeatedly. Loyalty is also proven by owning an airline membership card and recommending airline services to colleagues.

Even though advertising on Instagram affects customer loyalty, there are several recommendations are obtained for airlines to provide more attractive and up-to-date advertisements to increase customer loyalty. For example, airlines can give free tickets when opening the newest routes and offer other rewards to customers who have flown the most in one year.

Making customers interested in Instagram advertisements can be done by using other indicators, which are Attention, Interest, Decision, and Action.

Furthermore, this research has limitations since it only discusses the distribution of advertising on Instagram, customer experience, customer satisfaction, and customer loyalty. Future research should add variables such as price, safety, and communication strategies. This research is also limited to taking samples from only one social media. It is suggested to use samples from all social media accounts in the future.

5.1. Implications

It is hoped that this research will contribute to suggesting theoretical knowledge, especially in the field of marketing management. Therefore, policymakers and company managers can implement effective strategies to increase customer satisfaction and loyalty.

In this study, the distribution of advertisements on Instagram significantly influences customer satisfaction and loyalty. Currently, Instagram is a platform that provides easy access in finding information. However, optimized use of Instagram can reduce marketing costs and reach a wider audience.

However, Instagram can also be a boomerang for companies because it is an uncontrolled media. Customers can share their bad experiences, and everyone can see, which negatively affects the company. Therefore, companies need the proper complaint-handling techniques and ways to recover their brand image

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