The effect of mergers and acquisitions on customer–company relationships: Exploring employees’ perceptions in the Spanish banking sector

Abstract

Purpose

The purpose of this paper is to explore employees’ perceptions about customers’ reactions to mergers and acquisitions (M&A). In particular, the aim is to explore how M&A in the banking sector affects the relationship between customers and the financial entity in a real-life context.

Design/methodology/approach

Using a case analysis methodology, this paper investigates the most important cases of M&A that occurred between 54 retail banks and saving banks in the Spanish market between 2009 and 2014. To do so, 36 face-to-face exploratory interviews were conducted amongst a sample of employees selected through a purposive sampling technique.

Findings

The perceptions of the employees about the impact of the M&A on customer relationship development suggest that financial M&A negatively affect prices, the location and closeness of the branches, and the routines of the financial activity, and positively affect products and services offered after the M&A.

Research limitations/implications

Given that the objective is to explore perceptions rather than test them, despite being insightful, the results of this study should be generalised with caution.

Originality/value

This paper explores customer responses and attitudes towards financial M&A from the point of view of marketing. This paper considers the effect that M&A changes generate on consumer satisfaction and bank−client long-term relationships.

Citation

Alvarez-González, P. and Otero-Neira, C. (2020), "The effect of mergers and acquisitions on customer–company relationships: Exploring employees’ perceptions in the Spanish banking sector", International Journal of Bank Marketing, Vol. 38 No. 2, pp. 406-424. https://doi.org/10.1108/IJBM-02-2019-0058