CONSUMER RESPONSE TO BRAND DELETION: ANALYSIS OF SELF-BRAND CONNECTION

Abstract

Purpose: This study analyzes the effect of brand deletion (BD), by a company strategizing to reduce its brand portfolio, on consumers' purchase intention (PI) and word-of-mouth (WOM) recommendations. Method: Three single-factor, 2 × 1 between-subject experiments were conducted to evaluate the impact of post-acquisition brand strategy (maintenance vs. deletion) on PI and WOM recommendations. The mediating effect of negative affect (NA) and the moderating effect of self-brand connection (SBC) were also analyzed. Originality / Relevance: This experimental study is the first to analyze how BD impacts consumers' affective (NA) and conative (PI and WOM recommendation) responses to the brand they perceive as accountable for this decision, in a merger and acquisition (M&A) context. Results: In a M&A scenario, consumers with high levels of SBC will present higher NA following BD. Consequently, they will reduce their PI and WOM recommendation of the products of the acquirer company undertaking BD. Theoretical / methodological contributions: Results highlight the importance of considering a brand's SBC before opting for BD because it not only affects that particular brand but may also reduce PI and WOM recommendations of the company implementing BD.