How the Country-of-Origin Image and Brand Name Redeployment Strategies Affect Acquirers’ Brand Equity After a Merger and Acquisition

Abstract

The purpose of this study is to examine the country-of-origin (COO)'s effect on brand equity, especially when the acquirer brand is afflicted by a low COO image and the acquired brand enjoys a high COO image. The authors also examine the impact of brand redeployment strategies on brand equity. An online questionnaire in Taiwan was an integral part of the study, and the results indicate that brand redeployment strategies have a positive influence on every dimension of brand equity, while the target dominant strategy has the greatest impact. Regarding the COO effect, the high variance of COO after mergers and acquisitions has more influence on dimensions of brand equity than low variance. In addition, COO variance has the greatest impact on brand loyalty.