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Postacquisition asset redeployment and marketing adaptation: a consumer perspective

Cher-Min Fong (College of Management, National Sun Yat-sen University, Kaohsiung, Taiwan)
Hsing-Hua Stella Chang (College of Management, National Sun Yat-sen University, Kaohsiung, Taiwan)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 16 March 2021

Issue publication date: 1 December 2022

162

Abstract

Purpose

This research examines consumer assessments of brand value derived from the redeployment of brand-related assets following a crossborder acquisition (CBA). The current study synthesizes research on international marketing standardization/adaptation to the context of crossborder horizontal acquisitions as the market entry strategy to investigate consumer evaluations of the postacquisition choice of brand name and brand positioning.

Design/methodology/approach

A pretest and two studies were conducted in Taiwan to empirically examine effects from the theory-driven model of product legitimacy (PL) on an entity's postacquisition brand value, as well as any moderating effects of consumer localism.

Findings

Postacquisition brands were evaluated more positively when positioned in a manner that was in accordance with perceived PL. Consumer localism as another contingency factor reflected consumers' favorable attitude toward marketing adaptation following CBAs.

Originality/value

This article is a pioneering work to draw on the consumer perspective to investigate asset redeployments between the acquirer and target following a crossborder horizontal acquisition. Specifically, this research introduces PL as a contingency factor to examine consumers' evaluation of brand value, which is derived from the redeployment of brand name and brand positioning in the context of a developed-country firm's acquisition of an advanced emerging-market firm for entry into the market.

Keywords

Citation

Fong, C.-M. and Chang, H.-H.S. (2022), "Postacquisition asset redeployment and marketing adaptation: a consumer perspective", International Journal of Emerging Markets, Vol. 17 No. 10, pp. 2721-2739. https://doi.org/10.1108/IJOEM-05-2020-0558

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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