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Customer reactions to acquirer-dominant mergers and acquisitions

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  • Thorbjørnsen, Helge
  • Dahlén, Micael

Abstract

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.

Suggested Citation

  • Thorbjørnsen, Helge & Dahlén, Micael, 2011. "Customer reactions to acquirer-dominant mergers and acquisitions," International Journal of Research in Marketing, Elsevier, vol. 28(4), pages 332-341.
    • Handle: RePEc:eee:ijrema:v:28:y:2011:i:4:p:332-341
    DOI: 10.1016/j.ijresmar.2011.05.005
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    Cited by:

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    2. Monica B. Fine & Kimberly Gleason & Desi Budeva, 2016. "Getting what you’re worth: Implications that affect firm value in a brand acquisition," Journal of Brand Management, Palgrave Macmillan, vol. 23(5), pages 70-96, September.

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