The Influence of Naming Rights Sponsorship and User-Generated Content on Purchase Decision of Kopi Tuku Through Brand Awareness

Abstract

Background: The rapid growth of Indonesia's coffee industry has increased competition, prompting local brands such as Kopi TUKU to adopt innovative marketing strategies. Naming rights sponsorship in public facilities, such as MRT stations, and user-generated content (UGC) on social media have emerged as potential mechanisms for strengthening brand awareness and influencing purchase decisions. However, the effectiveness of these strategies in translating brand exposure and consumer-generated content into purchase decisions remains underexplored.
Purpose: This study examines the effects of naming rights sponsorship and UGC on brand awareness and purchase decisions for Kopi TUKU, with brand awareness examined as a mediating variable.
Design/methodology/approach: A quantitative approach was employed using a five-point Likert-scale online questionnaire administered to 105 MRT users in the Greater Jakarta (Jabodetabek) area who were exposed to the MRT Cipete Raya TUKU naming rights placement. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0.9.9.
Findings/Results: Naming rights sponsorship has a positive and significant effect on brand awareness (β = 0.797, p < 0.001) and purchase decision (β = 0.358, p < 0.001). UGC has a positive effect on brand awareness, although the effect is significant only at the 10% level (β = 0.111, p = 0.090), and a positive significant effect on purchase decision (β = 0.209, p = 0.043). Brand awareness positively and significantly affects purchase decision (β = 0.464, p < 0.001). Brand awareness significantly mediates the relationship between naming rights sponsorship and purchase decision (β = 0.370, p < 0.001) and provides a weaker indirect effect for UGC (β = 0.051, p = 0.076, significant at the 10% level). The model explains 70.9% of the variance in brand awareness and 79.3% of the variance in purchase decision.
Conclusion: Naming rights sponsorship demonstrates a stronger awareness-mediated pathway to purchase decision, whereas UGC has a stronger direct relationship with purchase decision. These findings suggest that place-based branding and consumer-generated content may serve complementary roles in local coffee marketing.
Originality/value: This study extends research on naming rights sponsorship by examining its relationship with brand awareness and purchase decision in the context of public transportation infrastructure, while simultaneously comparing its effects with UGC in an Indonesian local coffee brand context.

Keywords: brand awareness, Kopi TUKU, naming rights sponsorship, purchase decision, user-generated content