Host country consumers’ brand attitudes after cross-border acquisitions

Abstract

Purpose

This study aims to investigate factors impacting host country consumers’ attitudes toward acquirers’ corporate brands and target brands after cross-border acquisitions (CBAs).

Design/methodology/approach

Surveys were conducted with US consumers using two fictitious CBA scenarios in the automobile industry.

Findings

Consumer ethnocentric tendencies (CETs) are negatively related to attitudes toward a CBA event; attitudes toward a CBA event are positively related to post-CBA attitudes toward the acquirer's corporate brand; brand-image fit is positively related to attitudes toward a CBA event, and post-CBA attitudes toward the acquirer's corporate brand and the target brand; post-CBA attitudes toward the acquirer's corporate brand and the target brand are positively related.

Research limitations/implications

This study is limited in the sample, analysis approaches, context and factors examined. Future research could use more representative samples and both quantitative and qualitative methodologies; conduct more tests; examine real CBAs in different industries and countries; and investigate effects of other factors affecting attitudes toward the CBA event and post-CBA brand attitudes.

Practical implications

Managers should consider CETs and brand-image fit and strategically influence attitudes toward a CBA event and post-CBA brand attitudes.

Originality/value

It investigates the mediating effect of attitudes toward a CBA event on the relationship between CETs and post-CBA attitudes toward the acquirer's corporate brand and the effects of brand-image fit on attitudes toward a CBA event and post-CBA brand attitudes.

Citation

Shi, T., Li, J. and Lim, C.L. (2017), "Host country consumers’ brand attitudes after cross-border acquisitions", Journal of Product & Brand Management, Vol. 26 No. 6, pp. 559-572. https://doi.org/10.1108/JPBM-06-2015-0909