When and Why Consumers React Negatively to Brand Acquisitions: A Values Authenticity Account

Alessandro Biraglia, Christoph Fuchs, Elisa Maira, Stefano Puntoni

Publications: Contribution to journalArticlePeer Reviewed

Abstract

Brand acquisitions are a popular growth strategy. However, both anecdotal evidence and initial empirical evidence suggest that acquisitions can harm the acquired brand. This article proposes and tests a theoretical framework that aims to explain when and why consumers react negatively to acquired brands. Across ten studies using different methods, research designs, product categories, and brands, the authors demonstrate that these negative brand reactions can be explained by the perceived loss of a brand's unique values. Building on this values authenticity account, they document that the negative effect of acquisitions depends on the acquired brand's values, brand age, leadership continuity, and the alignment between acquiring and acquired brands. The findings offer important theoretical and managerial implications, helping managers predict and mitigate the negative effects of acquisitions for brands.

Original languageEnglish
Pages (from-to)601-617
Number of pages17
JournalJournal of Marketing
Volume87
Issue number4
Early online date25 Oct 2022
DOIs
Publication statusPublished - Jul 2023

Austrian Fields of Science 2012

  • 502019 Marketing

Keywords

  • MIB
  • HBE
  • values authenticity
  • consumer reactions
  • authenticity
  • branding
  • signaling theory
  • brand values
  • acquisitions

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