Understading Brand Extension Evaluation in the Malaysian Market: The Role of Style of Thinking

Noor ul Hadi; Ahtesham Ali Raja; Mohammad Altwe

Abstract:

Since styles of thinking vary across cultures, it is necessary to explore and examine, how consumers evaluate brand extensions in a multi-cultural country. Therefore, this study made an attempt to identify whether style of thinking moderates the perceived fi t and brand extension evaluation relationship in the Malaysian market. Employing 141 valid responses, this study found a positive and signifi cant relationship between perceived fi t, style of thinking, and consumer's evaluation of brand extension. It also found that holistic style of thinkers evaluates brand extension more favourably than analytical style of thinkers (t=2.042 at the 5% level). This fi nding is further supported by f 2 effect sizes. The amount of variance suggested by the overall model is considerable, and it also offers a good amount of predictive capability. This fi nding has signifi cant implications for companies worldwide as they commonly implement brand extension strategies.

research from:

• Foundation University - Faculty of Management Sciences

Year:

2020

Type of Publication:

Article

Journal:

Pakistan Business Review

Volume:

21

Number:

4

Pages:

693-705

Month:

1