, Volume 34, Issue 2, pp 206-215

Consumer evaluations of corporate brand redeployments

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Abstract

There has been little attention paid to the management of corporate brand names as part of the merger and acquisition process. As an initial step towards developing a better understanding of this brand redeployment decision the authors consider the reactions of one important stakeholder group—consumers—to alternative strategies. Specifically, the authors discuss the importance of the corporate branding decision in the M&A process and present a typology of alternative redeployment strategies as well as an exploratory study examining reactions to different postmerger branding strategies. The authors find evidence that the brand equity related to corporate brands is often decreased as a result of M&A activities and that individuals react differently to mergers employing different redeployment strategies. These results emphasize the need for firms to evaluate the corporate branding component of M&A activities as part of the process of managing corporate brands and should generate interest and research in this managerially relevant area.

Anupam Jaju (ajaju@gmu.edu) is an assistant professor of marketing at George Mason University. He received his Ph.D. from the University of Georgia at Athens. His articles have appeared in leading marketing journals, including theJournal of the Academy of Marketing Science, theJournal of International Management, Marketing Theory, andMarketing Education Review. His current research focuses primarily on exploring three interrelated domains of business: the link between corporate and functional (marketing) strategy, the market orientation of corporate strategies, and the market and customer-related consequences of corporate strategy.
Christopher Joiner (cjoiner@gmu.edu) is an assistant professor of marketing at George Mason University. He received his Ph.D. from the University of Minnesota. His articles have appeared in leading marketing journals, including theJournal of Marketing, theJournal of Consumer Psychology, the Journal of Current Issues and Research in Advertising, andAdvances in Consumer Research.
Srinivas K. Reddy (sreddy@terry.uga.edu) is the Robert O. Arnold Professor of Marketing and the director of the Coca-Cola Center for Marketing Studies at the Terry College of Business, University of Georgia. He received his Ph.D. from Columbia University. He has taught previously at New York University, Columbia University, and the University of California, Los Angeles, and was a visiting professor at Stanford Business School. His research on brand and marketing strategy and has been published in theJournal of Marketing, theJournal of Marketing Research, Management Science, Marketing Letters, theJournal of the Academy of Marketing Science, and theJournal of Business Research. His current research interests include the financial and marketing impacts of brand failure and understanding the value of creative products such fine art.