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| Content Provider | Springer Nature Link |
|---|---|
| Author | Heinberg, Martin Ozkaya, H. Erkan Taube, Markus |
| Copyright Year | 2015 |
| Abstract | The literature that focuses on acquisitions from the consumer perspective has generally neglected the brand strategy of cross-border acquisitions in an emerging market by a developed country brand. However, research in this field appears necessary, considering the high failure rate of M&As, the common practice of Western/global companies of augmenting their brand portfolio through local acquisitions, and the sensitivity of emerging market consumers to foreign brands. The present study is an initial attempt to understand the loyalty of consumers toward the acquired brands. Moreover, we investigate how such an acquisition affects the relationship between quality and loyalty, as well as between price and loyalty. For fast-moving consumer goods brands in China, the findings indicate that from a customer’s perspective acquiring a local brand is not an advisable strategy for foreign brand conglomerates, because such an international takeover may decrease consumer loyalty. Additionally, consumers tend to expect higher quality after the takeover but may not want to pay more for the quality increase. |
| Starting Page | 586 |
| Ending Page | 607 |
| Page Count | 22 |
| File Format | |
| ISSN | 00920703 |
| Journal | Journal of the Academy of Marketing Science |
| Volume Number | 44 |
| Issue Number | 5 |
| e-ISSN | 15527824 |
| Language | English |
| Publisher | Springer US |
| Publisher Date | 2015-06-16 |
| Publisher Institution | Academy of Marketing Science |
| Publisher Place | New York |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | Mergers and acquisitions Quality Price Loyalty Local brands Foreign brands IBPA brands Business and Management Marketing Social Sciences |
| Content Type | Text |
| Resource Type | Article |
| Subject | Business and International Management Economics and Econometrics Marketing |
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