Research on the relationship of the weaker enterprises post-merger brand strategy and consumers' purchase intention: Based on the brand authenticity. Issue 1 (3rd September 2018)

• Record Type: Journal Article
• Authors: Yao, Peng; Wang, Xinxin
• Is Part Of: Journal of contemporary marketing science. Volume 1:Issue 1(2018)
• Page Start: 34
• Page End: 52
• Publication Date: 2018-09-03
• Subjects: Brand strategy -- Brand authenticity -- Purchase intention -- Merger and acquisition -- Self-brand connection; Marketing -- Periodicals; 381
• DOI: 10.1108/JCMARS-08-2018-0006
• Languages: English
• ISSNs: 2516-7480

Abstract

Abstract : Purpose: Nowadays, many weak brands have acquired strong international brands to accelerate their internationalization. However, "the weakers acquire the strongers" model of M&A leads to many consumers' loss. The purpose of this paper is to explore the relationships between the brand strategy after the M&A, brand authenticity and consumer purchase intention through two experiments. Design/methodology/approach: Building on an extensive literature review, the authors identify four hypotheses. Hypotheses were tested on data collected across 190 Chinese consumers. Findings: The results show that the decline of consumer purchase intention was mainly caused by the falling consumer assesses on brand authenticity; the different post-merger brand strategies have significant difference on brand authenticity and consumer purchase intention, and self-brand connection played a moderate role between brand authenticity and consumer purchase intention. Originality/value: The research reveals the reasons for consumer loss after mergers and acquisitions and provides empirical insights into how post-merger brand strategies can be manifested to convey brand authenticity as well as to build consumers' purchase intention. In addition, the findings confirm the role of self-brand connection.