Monga, Alokparna Basu and Deborah Roedder John (2007), “Cultural Differences in Brand Extension Evaluation: The Influenc

1. Cultural Differences in Brand Extension Evaluation: The Influence of Analytic versus Holistic Thinking Monga, AlokparnaBasu and Deborah Roedder John (2007), by Benson Nwaorgu (2016) (PhD-inview) Benson.nwaorgu@ozu.edu.tr

2. Overview • Knowing our stand on how we think about things! • Introduction of concept • Why is this topic important • How the research Idea was discovered • Our findings add to consumer behavior literature reporting cultural differences across many context Benson.nwaorgu@ozu.edu.tr

3. Are You a Holistic or a Analytic Thinker? Benson.nwaorgu@ozu.edu.tr

4. Pay More Attention! Benson.nwaorgu@ozu.edu.tr

5. Introduction • Nisbett et al (2001) argue, Cross cultural difference in style of thinking • E.g. . Jeep and Boat (motor) • A table and chair (relationship) Benson.nwaorgu@ozu.edu.tr

6. Westerners Culture Vs Easterners Cultures Easterners Promote Holistic thought Westerners Promote Analytic Thought Benson.nwaorgu@ozu.edu.tr

7. On Brand Extension…Any difference? Analytic thinkers focus on attributes and categories to draw inferences and make judgement base of product similarities Identification Parent Brand Holistic Thinkers focus on relationships between objects and the field as well as relationships between objects Identification of Parent brand Benson.nwaorgu@ozu.edu.tr

8. HYPOTHESIS: Study I Proposed Question: E Higher degree of brand extension W ? • Hi: Consumer From Eastern Cultures will perceive a higher degree of brand extension fit than consumers from Western cultures • H2: Consumers from Eastern Cultures Will evaluate brand extension more favorably than consumers from western cultures Benson.nwaorgu@ozu.edu.tr

9. Methodology: study 1 • Study : brand extension fit 2X3 between subject design • Sample: Student, 57 US ( 100% American), 62 Indian (100% native) • Brands: Kodak, Mc Donald’s and Coke • Scale, Open ended questions Copyright © 2013 Pearson Education

10. Study 1 Examines cultural difference in brand Extension fit and evaluation comparing US(Westerners) and Easterner (India) Benson.nwaorgu@ozu.edu.tr

11. Findings 1 • Analytic holistic style of thinking (Kodak). (expected) U.S than Indian(embedded figures) • 2 (culture) x3 (BEF) Indian higher ratings for all fit. Median split analyses (confirmed) Study 1B: Replicate our Result : Mc Donald's. 2x4 Sample: 76(American) and 82(Indian) : Same result Benson.nwaorgu@ozu.edu.tr

12. Study II: Methodology & Hypothesis • Methodology: Priming Manipulation (Pronoun) H3: Priming holistic thinking among westerners will increase perceptions of brand extension fit and extension evaluations. Priming analytic thinking among Easterners will decrease perceptions of brand extension fit and extension evaluation H4: Without Priming, Easterners will have more favorable brand extension responses than westerners. Priming the same style of thinking (analytic or holistic) in both groups will eliminate cultural difference Benson.nwaorgu@ozu.edu.tr

13. Study II • Study: 2(culture) X 3(prime: no prime, analytic prime, holistic Prime) • Sample: 58(American), 68(Indian) * Identical to study I* Priming Manipulation • 10 items measure of holistic thinking not embedded • Provides support for styles of thinking as the factor responsible for cultural differences Benson.nwaorgu@ozu.edu.tr

14. Study II: Findings • Analytic holistic style of thinking (Pronoun). U.S than Indian (EXPECTED) • Brand Extension Fit: 2 (culture) x3 (prime) Indian got higher ratings for all fit Prime condition : Indian No Prime condition: American Benson.nwaorgu@ozu.edu.tr

15. Table II Analytic Thinking: U.S less holistic than Indian Americans Benson.neaorgu@ozu.edu.tr

16. Study II: Charts Benson.nwaorgu@ozu.edu.tr

17. Conclusion • Easterners judge brand extensions fit to be higher and evaluate brand extension more favorable than Westerner • Cultural differences disappearance in extension fit perceptions and extension evaluation btw them when primed to think the same way • Our findings add to the consumer behavior literature reporting cultural differences across many context Benson.nwaorgu@ozu.edu.tr

18. Benson.nwaorgu@ozu.edu.tr