The Association of Luckin Coffee’s New Media Advertising Marketing and its Brand Equity: Brand Cultural Identity as A Mediator

Ziye Li

doi:10.54097/7d10x086

Authors

Ziye Li School of Humanities, Zhejiang University of Technology, Hangzhou, Zhejiang, China

DOI:

https://doi.org/10.54097/7d10x086

Keywords:

Luckin Coffee, brand cultural identity, new media advertising, brand equity.

Abstract

The coffee industry has been commonly acknowledged as emerging. Given the popularity of Luckin Coffee in the Chinese market, this research aims to investigate the associations between Luckin Coffee’s new media advertising and its brand equity, considering brand culture identity as a mediator. Considering brand equity as a multi-dimensional concept which is constructed of brand awareness, brand associations, and perceived quality, a total of six hypothetical relationships among the constructs were developed. This research collected online responses from 429 Chinese consumers of Luckin Coffee. Structural Equation Modelling (SEM) was employed to examine the associations. As a result, new media advertising was significantly associated with all brand equity dimensions, on which, brand cultural identity was addressed as a significant mediator. The results of this research successfully contributed to the limited understanding of fostering brand equity through new media advertising in the coffee industry, and reported the essentialness of brand cultural identity in brand management. Practically, this research provided a robust framework for practitioners to enhance brand equity through effective advertising and consumers’ cultural identity of the brand.

References

[1] Zhu, X. (2024). A study on the optimisation of brand management of Luckin Coffee. Highlights in Business, Economics and Management, 27, 261–267.

[2] International Coffee Council. (2025). I-CIP_January2025. https://www.icocoffee.org/documents/prices/I-CIP_January2025.pdf

[3] China Daily. (2024, October 23). [News article]. https://cn.chinadaily.com.cn/a/202410/23/WS67187145a310b59111d9f669.html

[4] Agriculture Universe. (n.d.). China coffee industry report 2024 officially released revealing new trends China’s coffee industry. https://agricultureuniverse.com/china-coffee-industry-report-2024-officially-released-revealing-new-trends-chinas-coffee-industry

[5] Huang, J. (2024). Analysis of co-branding strategies of Luckin Coffee and Moutai. Highlights in Business, Economics and Management, 27, 305–311.

[6] Shang, Z. (2023). Analysis of Luckin Coffee marketing strategy based on the 4P theory. Highlights in Business, Economics and Management, 13(2), 106–112.

[7] Sun, Y. (2024). Research on the marketing strategy of co-branding with other brands—Taking Luckin Coffee as an example. Journal of Education Humanities and Social Sciences, 27, 293–298.

[8] Erkan, I., Gokerik, M., & Acikgoz, F. (2021). The impacts of Facebook ads on brand image, brand awareness, and brand equity. In Research anthology on strategies for using social media as a service and tool in business (pp. 647–667). IGI Global.

[9] Tran, T. P. (2017). Personalized ads on Facebook: An effective marketing tool for online marketers. Journal of Retailing and Consumer Services, 39, 230–242. https://doi.org/10.1016/j.jretconser.2017.06.008

[10] Efendioglu, I. H., & Durmaz, Y. (2022). The impact of perceptions of social media advertisements on advertising value, brand awareness and brand associations: Research on Generation Y Instagram users. Transnational Marketing Journal, 10(2), 251–275.

[11] Budiman, S. (2021). The effect of social media on brand image and brand loyalty in Generation Y. The Journal of Asian Finance, Economics and Business, 8(3), 1339–1347. https://doi.org/10.13106/jafeb.2021.vol8.no3.1339

[12] Rajavi, K., Lehmann, D. R., & Keller, K. L. (2023). Ad expenditures and perceived quality: A replication and extension. Marketing Letters, 34(1), 161–169. https://doi.org/10.1007/s11002-022-09647-8

[13] Aileen, E., Gaberamos, O., Bernarto, I., et al. (2021). The effect of social media marketing, word of mouth, and effectiveness of advertising on brand awareness and purchase intention on Grab application users domicile of Tangerang. Enrichment: Journal of Management, 12(1), 426–441.

[14] Rizwan, S., Al-Malkawi, H. A., Gadar, K., et al. (2021). Impact of brand equity on purchase intentions: Empirical evidence from the Health Takaful Industry of the United Arab Emirates. ISRA International Journal of Islamic Finance, 13(3), 349–365.

[15] Ren, Y., Choe, Y., & Song, H. (2023). Antecedents and consequences of brand equity: Evidence from Starbucks coffee brand. International Journal of Hospitality Management, 108, 1–10. https://doi.org/10.1016/j.ijhm.2022.103344

[16] Yahya, N. Y., Mazlan, N. A., & Wan Kamarudin, W. N. B. (2022). Personal factor and consumer purchase intention: The risen of coffee culture in Klang Valley, Malaysia. Journal of Tourism, Hospitality and Culinary Arts, 14(2), 130–148.

[17] Ut-Tha, V., Lee, P. P., & Chung, R. H. (2021). Purchase intention of certified coffee: Evidence from Thailand. The Journal of Asian Finance, Economics and Business, 8(8), 583–592. https://doi.org/10.13106/jafeb.2021.vol8.no8.0583

[18] Czarnecka, B., Brennan, B., & Keles, S. (2018). Cultural meaning, advertising, and national culture: A four-country study. Journal of Global Marketing, 31(1), 4–17. https://doi.org/10.1080/08911762.2017.1398020

[19] Essamri, A., McKechnie, S., & Winklhofer, H. (2019). Co-creating corporate brand identity with online brand communities: A managerial perspective. Journal of Business Research, 96, 366–375. https://doi.org/10.1016/j.jbusres.2018.08.031

[20] Kobayashi, K., Jackson, S. J., & Sam, M. P. (2018). Multiple dimensions of mediation within transnational advertising production: Cultural intermediaries as shapers of emerging cultural capital. Consumption Markets & Culture, 21(2), 129–146. https://doi.org/10.1080/14793630.2017.1326247

[21] Gzeskowiak, S., Sirgy, M. J., Foscht, T., et al. (2016). Linking retailing experiences with life satisfaction: The concept of story-type congruity with shopper’s identity. International Journal of Retail & Distribution Management, 44(2), 124–138. https://doi.org/10.1108/IJRDM-02-2015-0024

[22] Holt, D. B. (2004). How brands become icons: The principles of cultural branding. Harvard Business School Press.

[23] Acar, K., Büyükdağ, N., Türten, B., et al. (2024). The role of brand identity, brand lifestyle congruence, and brand satisfaction on repurchase intention: A multi-group structural equation model. Humanities and Social Sciences Communications, 11(1), 1–13. https://doi.org/10.1057/s41599-024-02706-0

[24] Amaral, N., & Torelli, C. J. (2018). Salient cultural identities and consumers’ valuation of identity congruent brands: Consequences for building and leveraging brand equity. Journal of Management and Training for Industries, 5(3), 13–30.

[25] Fischer, E. F. (2022). Making better coffee: How Maya farmers and third wave tastemakers create value. University of California Press.

[26] Patrick, D. P., Maggie, G., & Van den B, B. (2010). Marketing communications: A European perspective. Financial Times Prentice Hall.

[27] Belch, G. E., & Belch, M. A. (2018). Advertising and promotion: An integrated marketing communications perspective. McGraw-Hill.

[28] Bendixen, M. T. (1993). Advertising effects and effectiveness. European Journal of Marketing, 27(10), 19–23. https://doi.org/10.1108/03090569310046264

[29] Kemp, S. (2021, January). Digital 2021: The latest insights into the ‘state of digital’. We Are Social. https://wearesocial.com/uk/blog/2021/01/digital-2021-the-latest-insights-into-the-state-of-digital

[30] Aslam, B., & Karjaluoto, H. (2017). Digital advertising around paid spaces, e-advertising industry’s revenue engine: A review and research agenda. Telematics and Informatics, 34(8), 1650–1662. https://doi.org/10.1016/j.tele.2017.07.011

[31] Aydin, A. F. (2013). Sosyal medya kullanımı ve kurumsal markalaşma: Vodafone örneği. Global Media Journal Turkish Edition, 8(15), 320–345.

[32] O’Giunn, T. C., Allen, C. T., & Semenik, R. J., et al. (2009). Advertising & integrated brand promotion. South-Western.

[33] Cobb-Walgren, C. J., Ruble, C. A., & Donthu, N. (1995). Brand equity, brand preference, and purchase intent. Journal of Advertising, 24(3), 25–40. https://doi.org/10.1080/00913367.1995.10673487

[34] Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1–22. https://doi.org/10.1177/002224299305700101

[35] Viertamo, V. (2023). Building brand equity through the brand resonance model [Bachelor’s thesis]. Jamk University of Applied Sciences.

[36] Aaker, D. A. (2009). Managing brand equity. Simon & Schuster.

[37] Buil, I., Martínez, E., & De Chernatony, L. (2013). The influence of brand equity on consumer responses. Journal of Consumer Marketing, 30(1), 62–74. https://doi.org/10.1108/07363761311206439

[38] Schmitz, A., & Villaseñor-Román, N. (2018). Do brands matter in unlisted firms? An empirical study of the association between brand equity and financial performance. Administrative Sciences, 8(4), 1–12. https://doi.org/10.3390/admsci8040072

[39] Aaker, D. A. (1992). The value of brand equity. Journal of Business Strategy, 13(4), 27–32. https://doi.org/10.1108/eb051412

[40] Herdana, A. (2015). Analisis pengaruh faktor-faktor ekuitas merek terhadap keputusan pembelian produk sepeda motor Yamaha Mio-J di Kota Tomohon. Jurnal Riset Bisnis dan Manajemen, 3(1), 47–60.

[41] Fajri, I., Rizkyanfi, M., & Smaya, R. (2021). The effect of social media marketing on purchase decisions with brand awareness as an intervening variable in Praketa Coffee Shop Purwokerto. The Journal Gastronomy Tourism, 8(2), 97–110.

[42] Sutariningsih, N. M. A., & Widagda, I. G. N. J. A. (2021). Peran brand awareness memediasi pengaruh social media marketing terhadap purchase intention [Doctoral dissertation]. Udayana University.

[43] Angel, J. F., Surya, P., Destari, S. P., et al. (2023). Brand awareness De. U Coffee Bandung. Apollo: Journal of Tourism and Business, 1(3), 113–121.

[44] Makasi, A., Govender, K., & Rukweza, C. (2014). Building brand equity through advertising. Mediterranean Journal of Social Sciences, 5(20), 2613–2624. https://doi.org/10.5901/mjss.2014.v5n20p2613

[45] Pitta, D. A., & Katsanis, L. P. (1995). Understanding brand equity for successful brand extension. Journal of Consumer Marketing, 12(4), 51–64. https://doi.org/10.1108/07363769510093062

[46] Ranfagni, S., Faraoni, M., Zollo, L., et al. (2021). Combining online market research methods for investigating brand alignment: The case of Nespresso. British Food Journal, 123(13), 37–58. https://doi.org/10.1108/BFJ-01-2020-0023

[47] Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2–22. https://doi.org/10.1177/002224298805200302

[48] La Won, T., & Nuangjamnong, C. (2022). The effect of coffee-mix experience and experience quality through perceived value, satisfaction towards repurchase intention in Myanmar. AU-GSB e-JOURNAL, 15(1), 12–23.

[49] Washburn, J. H., & Plank, R. E. (2002). Measuring brand equity: An evaluation of a consumer-based brand equity scale. Journal of Marketing Theory and Practice, 10(1), 46–62. https://doi.org/10.1080/10696679.2002.11509066

[50] Gustafson, T., & Chabot, B. (2007). Brand awareness. Cornell Maple Bulletin, 105(1), 1–5.

[51] Dehghani, M., Niaki, M. K., Ramezani, I., et al. (2016). Evaluating the influence of YouTube advertising for attraction of young customers. Computers in Human Behavior, 59, 165–172. https://doi.org/10.1016/j.chb.2016.01.031

[52] Balroo, S. A., & Saleh, M. A. (2023). How is brand loyalty influenced by brand association of reference groups and advertisement informativeness through self-brand connection? International Journal of Economics, Business and Management Research, 7(10), 207–233.

[53] Keller, K. L., & Aaker, D. A. (1992). The effects of sequential introduction of brand extensions. Journal of Marketing Research, 29(1), 35–50. https://doi.org/10.1177/002224379202900104

[54] Kim, K., Chung, T. L. D., & Fiore, A. M. (2023). The role of interactivity from Instagram advertisements in shaping young female fashion consumers’ perceived value and behavioral intentions. Journal of Retailing and Consumer Services, 70, 1–12. https://doi.org/10.1016/j.jretconser.2022.103168

[55] Clark, T. (1990). International marketing and national character: A review and proposal for an integrative theory. Journal of Marketing, 54(4), 66–79. https://doi.org/10.1177/002224299005400407

[56] Aaker, J., Benet-Martinez, V., & Garolera, J. (2001). Consumption symbols as carriers of culture: A study of Japanese and Spanish brand personality constructs. Journal of Personality and Social Psychology, 81(3), 492–508. https://doi.org/10.1037/0022-3514.81.3.492

[57] Gao, L., & Zhang, M. X. (2018). Influencing factors and mechanism of consumer’s intention to purchase intangible cultural heritage products. Economic and Management Research, 39(1), 126–135.

[58] He, J., & Wang, C. L. (2015). Cultural identity and consumer ethnocentrism impacts on preference and purchase of domestic versus import brands: An empirical study in China. Journal of Business Research, 68(6), 1225–1233. https://doi.org/10.1016/j.jbusres.2014.11.024

[59] Hong, S. T., & Kang, D. K. (2006). Country-of-origin influences on product evaluations: The impact of animosity and perceptions of industriousness brutality on judgments of typical and atypical products. Journal of Consumer Psychology, 16(3), 232–239. https://doi.org/10.1207/s15327663jcp1603_5

[60] Leclerc, F., Schmitt, B. H., & Dubé, L. (1994). Foreign branding and its effects on product perceptions and attitudes. Journal of Marketing Research, 31(2), 263–270. https://doi.org/10.1177/002224379403100206

[61] Utomo, S. B., Suharmono, S., Nathanael, G. K., et al. (2024). Cultural identity as tourism branding for East Java Province in Instagram Content@ Disbudparjatimprov. Jurnal Ilmiah Edunomika, 8(1), 1–7.

[62] McCracken, G. (1986). Culture and consumption: A theoretical account of the structure and movement of the cultural meaning of consumer goods. Journal of Consumer Research, 13(1), 71–84. https://doi.org/10.1093/jcr/13.1.71

[63] Kubat, U., & Swaminathan, V. (2015). Crossing the cultural divide through bilingual advertising: The moderating role of brand cultural symbolism. International Journal of Research in Marketing, 32(4), 354–362. https://doi.org/10.1016/j.ijresmar.2015.06.002

[64] Hajdas, M. (2017). The impact of cultural branding on brand equity—Exploratory study. Handel Wewnętrzny, 5(370), 213–221.

[65] Stauss, B., & Weinlich, B. (1997). Process-oriented measurement of service quality: Applying the sequential incident technique. European Journal of Marketing, 31(1), 33–55. https://doi.org/10.1108/03090569710157793

[66] Shi, Y., Pyun, D., & Manoli, A. E. (2025). Impact of service quality on youth football participation in China: A moderating role of country-of-origin. European Sport Management Quarterly, 25(1), 1–23. https://doi.org/10.1080/16184742.2024.2376115

[67] Gaby, O. S., Marcel, V. B., Jos, L., et al. (2000). Moments of sorrow and joy. An empirical assessment of the complementary value of critical incidents in understanding customer service evaluations. European Journal of Marketing, 34(1–2), 107–125. https://doi.org/10.1108/03090560010306333

[68] Woratschek, H. (2000). Measuring service quality in sports. European Journal for Sport Management, 7(2), 22–42.

[69] Yoo, B., & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research, 52(1), 1–14. https://doi.org/10.1016/S0148-2963(99)00098-3

[70] Low, G. S., & Lamb, C. W., Jr. (2000). The measurement and dimensionality of brand associations. Journal of Product & Brand Management, 9(6), 350–370. https://doi.org/10.1108/10610420010356665

[71] Levesque, N., & Pons, F. (2023). Influencer engagement on social media: A conceptual model, the development and validation of a measurement scale. Journal of Theoretical and Applied Electronic Commerce Research, 18(4), 1741–1763. https://doi.org/10.3390/jtaer18040087

[72] Pan, X., Hao, A., Guan, C., et al. (2020). Affective and cognitive dimensions in cultural identity: Scale development and validation. Asia Pacific Journal of Marketing and Logistics, 32(6), 1362–1375. https://doi.org/10.1108/APJML-07-2019-0459

[73] Kline, R. B. (2011). Principles and practice of structural equation modeling. Guilford Publications.

[74] Sirgy, M. J. (2018). Self-congruity theory in consumer behavior: A little history. Journal of Global Scholars of Marketing Science, 28(2), 197–207. https://doi.org/10.1080/21639159.2018.1436981

[75] Cohen, J. (1988). Set correlation and contingency tables. Applied Psychological Measurement, 12(4), 425–434. https://doi.org/10.1177/014662168801200404