A Consumer Perspective on Post-Acquisition Brand Redeployment - Chinese Acquisitions of “Made in Italy” Luxury Brands

Acquisition is one of the strategies often used by emerging firms to access global markets. However, we know little about how this strategy affects the consumers’ perceptions of their acquired brands. This limited understanding is critical because previous studies have shown that firms from emerging countries face the “liabilities of origin” which results in significant difficulties in penetrating local markets and accessing local resources compared with firms from developed countries. To fill this gap, by drawing on a consumer perspective, the present research investigates the distinctive domestic dynamics that are associated with brand redeployment following Chinese acquisitions of Made in Italy brands. By relying on a survey amongst Chinese consumers, this study will explore the impact of Chinese acquisitions on the country-of-origin effect of a luxury “Made in Italy” brand amongst Chinese consumers and its distinctive dynamics. Theoretical contributions as well as practical implications for global marketers are also addressed in the final section of the paper.