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.
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.
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.
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.
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
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