Consumer intentions, reactance and the marketing implications of policy induced mergers and acquisitions in financial services

Drawing upon the indirect effects of customer reactance from an emerging economy perspective, we sought to establish the marketing implications of policy-induced Mergers and Acquisitions (M&A) in Financial Services.

From an investigation of over 500 customers in the affected banks, we found a positive and significant relationship between immersive marketing communication and consumer intention.

The presence of consumer reactance highly influenced the relationship.

As a public policy tool, forced mergers and acquisitions was found to increase customer reactance.

However, when customers are frequently engaged with relevant and consistent marketing communications through appropriate channels, such reactance would only be partial.

When timely and relevant marketing communications are targeted at the customers who are directly impacted by the M&A process, they would experience reactance, but only partially.

This has a range of marketing implications for policy-induced M&A and its impact on consumer intention, reactance and attitudes towards the new entity.

The marketing of financial services literature has been silent on the implications of M&A from a policy induced perspective. This study, therefore, contributes to theory by highlighting that the “destruction” of brand value of the affected firms is relatively high in a policy induced M&A and thus increases the level of customer reactance.

This is because a regulator enforced M&A, as public policy, usually generates high public interest and public discourse, leading to a heightened customer reactance. However, when immersive marketing communications are targeted at the customers directly impacted by the M&A, they would experience reactance, but only partially.

How to cite: Mensah, K., Madichie, N.O., Mensah, G.K. and Awini, G. (2022), “Consumer intentions, reactance and the marketing implications of policy induced mergers and acquisitions in financial services”, International Journal of Bank Marketing, https://doi.org/10.1108/IJBM-10-2020-0516

Originally published at https://www.emerald.com.

--

--

--

Nnamdi O. Madichie, PhD. Fellow of the Chartered Institute of Marketing (FCIM); Research Fellow Bloomsbury Institute London .

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Ecommerce Growth Hacking Strategies

Knowing Your Buyer Persona and how it defines your Business.

A Most Excellent Social Media Marketing Plan for Bill & Ted Face the Music

CPM, CPC, CPL, CPA, and CPI: What’s the Difference?

If you’re a subscriber, you’re entitled to my PDF, “Apple Notes, the Hidden Productivity Gem”.

“You can really build trust in your brand on social media if you invest time in authentic content”

11 videos that you’ll remember

The biggest pain for almost every business is finding more customers—here’s my braindump

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Nnamdi O. Madichie

Nnamdi O. Madichie

Nnamdi O. Madichie, PhD. Fellow of the Chartered Institute of Marketing (FCIM); Research Fellow Bloomsbury Institute London .

More from Medium

The Atomic Approach Isn’t Just for Essays, it’s a Design for Life for Anyone Who Feels Overwhelmed

[Interview 1] Transcript + Insights

What Do We Need to Know About the Asset Reservation System?

Asset Reservation System — Asset Infinity

Designing an experience to combat the generational gap — A Case Study