A Study On The Effect Of "Inferior To Superior" Cross-border M&A On Acquirer Brand Equity

In recent years, many Chinese companies such as Lenovo, Geely, Shuanghui, inferiorM&A superior, acquired well-known brands in Europe and America of European andAmerican, attempts to use “inferior to superior” cross-border M&A to build strong brands.Previous studies mainly focused on the “superior to superior” and “superior to inferior”cross-border M&A, resulting in the existing theory cannot provide guidance on the“inferior to superior” cross-border M&A business practice. Whether “inferior to superior”cross-border M&A can enhance acquirer brand equity, through which dimensions to enhancebrand equity and what kind of brand enterprises should be acquired to enhance brand equity,the enterprise which want to build strong brands through cross-border merger must solvethese issues immediately.To answer these questions, this study analysis cross-border M&A and brand equity,clarifies the “inferior to superior” cross-border M&A in the concepts and features, finishingthe classic model of consumer-based brand equity. Then on the base of Yoo and Donthu’smulti-dimensional brand equity model(MBE), combined with the signal theory, the emotionmigration theory and balance theory, and other psychology theory, analysis the mechanism of“inferior to superior” cross-border M&A affect acquirer brand equity, and then build a“inferior to superior” cross-border M&A effect on equity model, and makes an empiricalstudy based on consumer evaluation. Analysis the survey data by using SPSS18.0andAMOS17.0statistical software, test the hypothesis, we draw the following conclusions:“inferior to superior” cross-border M&A can ultimately enhance acquirer brand equity, byenhance brand awareness, corporate ability association, perceived quality and brandresonance and other dimensions. The influence and fitness of “inferior to superior”cross-border M&A match the dimensions of the acquirer brand equity positively correlated;in contrast, the influence of M&A mainly effects acquirer brand awareness, the fitness ofM&A mainly affect acquirer perceived quality, brand association and brand resonance. Inshort, the theoretical and empirical research show that “inferior to superior” cross-borderM&A to enhance the acquirer’s brand equity is beneficial, from a consumer perspective,“inferior to superior” cross-border M&A is a feasible path to enhance the brand equity.Finally, according to the research findings, this study proposes a targeted marketingadvice: the enterprises should enhance brand equity through brand awareness, corporateability association, perceived quality and brand resonance; enterprise can breakthrough brandassets promotion ceiling through “inferior to superior” cross-border M&A; companiesshould fully evaluate fitness of M&A when choose acquisition targets, not excessive pursuitof influence.