Host country consumers’ brand attitudes after cross-border acquisitions

Abstract

PurposeThis study aims to investigate factors impacting host country consumers’ attitudes toward acquirers’ corporate brands and target brands after cross-border acquisitions (CBAs).Design/methodology/approachSurveys were conducted with US consumers using two fictitious CBA scenarios in the automobile industry.FindingsConsumer 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/implicationsThis 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 implicationsManagers should consider CETs and brand-image fit and strategically influence attitudes toward a CBA event and post-CBA brand attitudes.Originality/valueIt 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.