Nerd Alert: When Consumers Punish Acquired Brands

Welcome to Nerd Alert, a series of special episodes bridging the gap between marketing academia and practitioners. We're breaking down highly involved, complex research into plain language and takeaways any marketer can use.

In this episode, Elena and Rob explore why consumers sometimes turn on brands after an acquisition, even when the product hasn't changed, and what marketers can do to soften the blow.

Topics covered:

• [02:05] "When and Why Consumers React Negatively to Brand Acquisitions: A Values Authenticity Account"
• [03:00] What is values authenticity, and why does it matter?
• [04:05] Why the underdog effect isn't the real culprit
• [04:40] How a 15% stake can start eroding consumer trust
• [05:55] Five factors that can reduce acquisition backlash
• [06:55] What competing brand equities mean for marketers

To learn more, visit marketingarchitects.com/podcast

Resources: Biraglia, A., Fuchs, C., Maira, E., & Puntoni, S. (2023). When and why consumers react negatively to brand acquisitions: A values authenticity account. Journal of Marketing, 87(4), 601–617. https://doi.org/10.1177/00222429221137817

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