Shaping and marketing cultural heritage identity: contrasting environmental effects of crowdedness and atmosphere

Purpose This study addresses a critical gap in heritage sustainability research by investigating how environmental contexts shape cultural identity formation. Moving beyond the traditional assumption that participation alone cultivates identity, it demonstrates that identity arises through the mediating roles of cultural confidence and experiential memory, revealing the intricate cognitive–emotional mechanisms that underlie person–environment interactions in heritage settings. Design/methodology/approach Grounded in the sensory marketing theory and CAB frameworks, this study integrates environmental psychology and heritage research to examine how environmental cues—such as crowdedness and atmosphere—affect tourists' cognitive appraisals, emotional reactions, and identity outcomes. Structural equation modeling (SEM) and theoretical reasoning are used to test the mediating effects of cultural confidence and experiential memory and the moderating effect of crowd density, guided by environmental preference theory. Findings Results reveal that heritage experiences influence cultural identity entirely through cultural confidence and experiential memory rather than direct participation. Moderate crowdedness enhances collective emotional energy and attentional engagement, reinforcing identity formation, while overly intense atmospheric stimuli hinder memory consolidation and weaken cultural connection. These findings underscore the interdependence of environmental design, affective engagement, and cognitive restoration in sustaining heritage vitality. Practical implications Festival organizers and policymakers should strategically balance environmental factors—such as crowd density and sensory atmosphere—to optimize engagement and memory retention. Cultural confidence can be strengthened through immersive, emotionally resonant performances and interactive activities. Policymakers should prioritize funding, accessibility, and environmental management in cultural events to promote inclusive participation, emotional connection, and long-term identity reinforcement. Originality/value This study makes a pioneering contribution to marketing research by integrating the sensory marketing theory and CAB frameworks to reveal how environmental stimuli and cognitive–affective responses shape consumers' cultural identity. It highlights cultural confidence and experiential memory as key mediators that transform sensory and experiential cues into deeper brand–culture engagement. The study advances experiential marketing theories, cultural branding, and sustainable consumer behavior by incorporating an environmental dimension into heritage identity. The findings provide a practical, evidence-based model for designing immersive experiences that strengthen brand loyalty, enhance customer engagement, and foster meaningful cultural connections.