Rebranding Mergers: How attitudes influence consumer choices?

• Main Author: César - Machado, Joana
• Publication Date: 2012
• Other Authors: Lencastre, Paulo de, Vacas-de-Carvalho, Leonor, Costa, Patrício
• Format: Article
• Language: eng
• Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
• Download full: http://hdl.handle.net/10174/7733; https://doi.org/10.1057/bm.2011.58
• topic: brand; brand identity signs; brand attitude; mergers and acquisitions; corporate brand name; logo changes

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.