2011
DOI: 10.2139/ssrn.1865150
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Customer Reactions to Acquirer-Dominant Mergers and Acquisitions

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 for the negative effects of m… Show more

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Cited by 17 publications
(53 citation statements)
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“…1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 In a recent study, Öberg (2014) reports how international acquisitions can end up eroding customer relationships due to the customers reacting negatively to acquisitions. Thorbjørnsen and Dahlén (2011) have also reported similar results. To avoid such problems, these authors suggest an active involvement of the customer in the post-merger activities.…”
Section: Practical Implicationssupporting
confidence: 66%
“…1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 In a recent study, Öberg (2014) reports how international acquisitions can end up eroding customer relationships due to the customers reacting negatively to acquisitions. Thorbjørnsen and Dahlén (2011) have also reported similar results. To avoid such problems, these authors suggest an active involvement of the customer in the post-merger activities.…”
Section: Practical Implicationssupporting
confidence: 66%
“…Over time, being exposed to advertising using such narrow stereotypical portrayals will put pressure on a female target audience to behave in a manner that is consistent with these stereotypes (e.g., Casper & Rothermund, ). This limits the personal freedom of female target audiences, thereby introducing a tension that is likely to lead to reactance (Thorbjørnsen & Dahlen, ). The theory of psychological reactance (Brehm, ) states that people have a predisposition to preserve and restore their personal freedom.…”
Section: Hypothesesmentioning
confidence: 99%
“…When personal freedom is reduced, eliminated, or threatened with elimination, people will experience a state of arousal (reactance) that induces attempts to recover or reestablish the lost or threatened behavior. Reactance has also been conceptualized as a situational construct, where certain stimuli or situations can lead people to experience reactance in that specific moment (e.g., Fitzsimons & Lehmann, ; Thorbjørnsen &Dahlen, ). The stereotypical female portrayals used in traditional advertising would indeed limit female target audiences’ perceived range of alternatives (regarding, e.g., what is means to be successful or attractive), and would thus generate higher levels of defensive reactions (Henderson‐King, Henderson‐King, & Hoffmann, ; Wan, Ansons, Chattopadhyay, & Leboe, ) at the time of exposure to such ads.…”
Section: Hypothesesmentioning
confidence: 99%
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“…They conclude how brand portfolios consisting of low-and high-end brands (mass-market and luxury car brands) may lead to scale and scope synergies, but also lead to brand corrosion. Thorbjørnsen and Dahlén (2011) focus on acquirer-dominated brand redeployment and point to negative reactions among the target's customers.…”
Section: Brand Management and Mergers And Acquisitionsmentioning
confidence: 99%