Rebranding mergers: How attitudes influence consumer choices?
- First Online:
- 80 Downloads
In the context of a merger or an acquisition, the management of corporate identity – in particular of corporate brand names and logos – assumes a critical role. The purpose of this article is to provide a better understanding of the corporate brand redeployment decision, considering the reactions of one important stakeholder group – consumers. This study develops a typology of the various corporate identity structures that could be assumed in the context of a brand merger, and analyses how consumers’ attitudes towards the corporate brands influences their preferences regarding the different branding strategies. Results suggest that the preference for a monolithic redeployment strategy, suggested in previous studies, is only clearly supported when one of the partners in the merger is a weak partner. When the merger involves two familiar brands, there is a tendency among consumers to combine elements of both brands’ identity. Finally, it is concluded that the affective and behavioural dimension of attitude towards the brand has a significant influence on consumers’ preferences.
Keywordsbrand brand identity signs brand attitude mergers and acquisitions corporate brand name logo changes
- Chisnal, P. (1995) Consumer Behaviour, 3rd edn. London: McGraw-Hill.Google Scholar
- Engel, J.F., Blackwell, R.D. and Miniard, P.W. (1995) Consumer Behaviour. Fort Worth, TX: The Dryden Press.Google Scholar
- Ettenson, R. and Knowles, J. (2006) Merging the brands and branding the merger. Sloan Management Review 47 (4): 39–49.Google Scholar
- Kohli, C.S., Suri, R. and Thakor, M. (2002) Creating effective logos: Insight from theory and practice. Business Horizons, (May–June): 58–64.Google Scholar
- Olins, W. (1990) Corporate Identity, Making Business Strategy Visible through Design. Boston, MA: Harvard Business Press.Google Scholar
- Rao, A.R. and Ruekert, R.W. (1994) Brand alliances as signals of product quality. Sloan Management Review 36 (1): 87–97.Google Scholar
- Schiffman, S.S. and Kanuk, L.L. (1991) Consumer Behavior. Engelwood Cliffs, NJ: Prentice Hall.Google Scholar
- Spaeth, T. (1999) Powerbrands. Across the Board 36 (2): 23–29.Google Scholar