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| Author: | Thorbjørnsen, H. Dahlén, M. |
| Title: | Customer reactions to acquirer-dominant mergers and acquisitions |
| Journal: | International Journal of Research in Marketing
2011 : DEC, VOL. 28:4, p. 332-341 |
| Index terms: | mergers brands brand loyalty consumer behaviour consumer attitudes |
| Language: | eng |
| Abstract: | The article examines consumer reactions to mergers and acquisitions (M&As) where a larger brand acquires the target brand, and the possible ways to mitigate the negative reactions. Consumers tend to react negatively to M&As by devaluing the acquirer brand, shown by findings from five studies, and may often switch because they value the target brand more. It is shown that brand managers can make the reactions milder by letting the consumers get involved in merger decisions. The article suggests that psychological reactance is a mediator of the negative effects of merger information on customers' attitudes and switching intentions. |
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