Cultural Orientation and Brand Dilution: Impact of Motivation Level and Extension Typicality

Abstract

This research examines cross-cultural differences in brand dilution effects and the moderating role of motivation and extension typicality. Drawing from recent findings that indicate that culture affects the way people treat conflicting information, this research predicts that Easterners and Westerners react differently to failures by a brand extension. In contrast to previous findings that have suggested that failure in a typical extension leads to less brand dilution for Westerners when they are highly motivated (than when they are less motivated), this study argues that Easterners exhibit greater brand dilution when they are less motivated (than when they are highly motivated). The opposite pattern of results should emerge when the extension is atypical. Three studies provide support for these predictions and the underlying processes.