Consumer Reactions To the Merger: Understanding the Role of Pre-Merger Brands

Document Type

Article

Publication Date

11-1-2014

School

Marketing

Abstract

Mergers are a common phenomenon in the business world despite statistics showing the high failure rates of mergers. A lack of focus on the consumer is often noted as a contributing factor to these merger failure rates. As such, this research focuses on consumer reactions to mergers by exploring the role of consumer attitude and service perceptions of the pre-merger brands. A carefully controlled experiment examines both pre-merger and post-merger brand attitudes and service perceptions. In addition, the role of perceived fit in shaping perceptions of the merger is explored. Overall, this study enhances the existing literature by providing a foundation for understanding how consumers initially react to the announcement of a merger involving their own brand. Several managerial implications emerge from the study findings.

Publication Title

Journal of Brand Management

Volume

21

First Page

615

Last Page

634

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