Possible Effect of Merger and Acquisition on Brand Equity: a Case Study of IT industry

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Mahmood Ahmed Awan
Habib Ullah Khan
Han Chiang Ho


The present study emphasizes on how Mergers and Acquisitions (M&A) affect the consumer’s buying behavior specifically customer’s perception, for both the parent and acquired brand in IT industry. Two surveys were conducted with university students in South Korea who used Microsoft, Skype, Facebook, and WhatsApp in light of their recent M & A. Formal empirical tests were used for reliability, convergent validity, discriminant validity and Structural Equation Modeling (SEM). Results confirm that brand awareness and perceived brand value are important sources of brand equity and the effects of these two components on brand equity in after M&A are significantly larger than before M&A. One major limitation of this study is that only one segment was target of this study so further studies can incorporate other segments and include more professionals of different countries. Secondly, future studies research can be enlarged in different industries apart from IT. The study provides new insights into important issues regarding brand equity and the exact direction in which to strengthen evaluation of M&A of online companies which could also be useful for brand managers.

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