Mergers and acquisitions success: examining customer loyalty

Abstract

Purpose Mergers and acquisition are a very common part of business strategy. However, it is not clear if and how these processes affect customers. This study aims to assess banking M&A from the marketing perspective, by analyzing its impact on the customer loyalty.

Design/methodology/approach The study employed a purposive sampling method for collecting data from 232 respondents using a self-administered questionnaire. Variance-based structural equation modelling (PLS-SEM) was used for testing the proposed structural model.

Findings Results show that M&A integration does influence customers' perception of key variables like customer–company relationship, and their loyalty after the M&A. Findings highlight the relative importance of these variables and the potential influence of some moderators (customer orientation, speed of integration and communication). The most important antecedent of loyalty in a M&A situation is service quality followed by company image, products and prices, sales channels and sales force.

Originality/value This paper explores the impact of M&A on clients by using customer survey data, an area that is still an under-explored field, in relation with the total number of articles on M&A that are published each year.