Abstract
Marketing literature has neglected cross-border acquisitions in a developing country by a developed country brand. However, research in this field appears necessary, when considering both the sensitiveness of developing country consumers to foreign brands and the common practice of western/global companies to enrich their brand portfolio through local acquisitions. The following paper deals with possible chances and challenges for such international brand portfolio transactions from a consumer perspective. By drawing on signaling theory, the resource based view and the theory of consumer reactance, we develop a simple hierarchical SEM model which is tested in China with 36 consumer goods brands. The study questions such an international takeover, since our findings point to a decrease in consumer loyalty and stagnant willingness to pay, despite rising quality expectations from consumers.
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© 2015 Academy of Marketing Science
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Heinberg, M., Taube, M. (2015). Challenges and Chances for International Portfolio Acquisition Brands (IPA Brands) in Developing Countries. In: Robinson, L. (eds) Marketing Dynamism & Sustainability: Things Change, Things Stay the Same…. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-10912-1_154
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DOI: https://doi.org/10.1007/978-3-319-10912-1_154
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-10911-4
Online ISBN: 978-3-319-10912-1
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