Customer reactions to acquirer-dominant mergers and acquisitions
Journal article, Peer reviewed
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Original versionInternational Journal of Research in Marketing 2011, 28(4):332-341 10.1016/j.ijresmar.2011.05.005
This article investigates consumer reactions to acquirer-dominant mergers and acquisitions (M&As) from the perspective of the (smaller) target brand and explores how marketing actions can mitigate negative effects. The findings from five studies show that consumers tend to react negatively to M&As by devaluing the acquirer brand, increasing their intention to switch, and adjusting their attitudes toward the target brand upward. We suggest that psychological reactance is a mediator of the negative effects of merger information on customers' attitudes and switching intentions. We also demonstrate that brand managers can attenuate reactance by involving consumers in merger decisions, thus providing important managerial implications for M&A decisions and processes.
-“NOTICE: this is the author’s version of a work that was accepted for publication in International Journal of Research in Marketing. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Journal of Research in Marketing 2011, 28(4):332-341. doi:10.1016/j.ijresmar.2011.05.005 Copyright © 2011 Elsevier B.V. All rights reserved.