Examining consumer responses to cross-border brand acquisitions
ISSN: 0309-0566
Article publication date: 24 May 2018
Issue publication date: 21 June 2018
Abstract
Purpose
The purpose of this study is to investigate the effect of cross-border acquisitions on brand image dimensions (functional, symbolic and global image) of the acquirer brand from a consumer’s perspective.
Design/methodology/approach
The authors measured Chinese consumers’ perceptions of eight fictitious cross-border acquisition scenarios and tested the hypotheses by using multiple hierarchical regression.
Findings
First, the acquisition significantly improves functional, symbolic and global image of the acquirer brand. Second, both image perceptions of the acquirer and the acquired brands before acquisition significantly impact post-image of the acquirer. The effect is greater for pre-image of the acquirer (dominance effect). Finally, brand fit, product fit and country-of-origin fit influence attitude toward the acquisition significantly.
Research limitations/implications
There are limitations in the generalizations of the findings due to its reliance on a single country (China) and one industry (home appliances).
Practical implications
First, engaging in cross-border acquisitions significantly enhances the brand image of the acquirer brand. The global image has the largest improvement. Second, practitioners should carefully consider different levels of fit before the acquisition.
Originality/value
This study contributes to the extant literature by investigating brand acquisitions from the perspective of home country consumers (acquirer) and integrating multiple brand image dimensions and various levels of fit simultaneously.
Keywords
Acknowledgements
The authors gratefully acknowledge financial support from the National Science Foundation of China (Grant Number 71272014) and Spears School of Business, Oklahoma State University.
Citation
Fang, X. and Wang, X. (2018), "Examining consumer responses to cross-border brand acquisitions", European Journal of Marketing, Vol. 52 No. 7/8, pp. 1727-1749. https://doi.org/10.1108/EJM-04-2016-0200
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited