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While there is an increasing number of local brand acquisitions by firms originating from emerging markets, there have been limited studies on consumers’ responses to their acquisition strategies. In addition, little is known about whether and how the country of origin (CoO) effect interacts with perceived brand localness (i.e., the acquired local brand is recognized as a local image) in influencing the perceived brand value of acquired local brands. This study fills these gaps in the literature and provides insights on how firms from emerging markets should promote their acquisition strategies to customers. Using an experimental research design, this study aims to explore whether and how the country of origin of emerging-market firms affect consumers’ responses to their acquisitions of brands overseas. This study reveals that the negative effect of an acquirer’s less favorable CoO becomes stronger when the perceived brand localness of the acquired brand is high. On the other hand, there is no significant evidence of the CoO effects on the acquired local brand with low perceived localness. This study demonstrates important insights on the country of origin effect and its interaction with perceived brand localness in determining how consumers respond to emerging firms’ acquisitions of local brands.

journal of marketing communications

The interplay between country-of-origin image and perceived brand localness: An examination of local consumers’ response to brand acquisitions by emerging market firms