Beyond the Buyout: Unveiling Consumer Reactions After a Startup Acquisition
Abstract
This study explores consumer reactions to startups’ post-acquisition performance, particularly focusing on expectation disconfirmation and its effects on perceived brand authenticity and a sense of betrayal. Drawing on the Stimulus-Organism-Response (S-O-R) model and Expectancy Disconfirmation Theory, the research examines how post-acquisition product offerings serve as stimuli, influencing cognitive (brand authenticity) and affective (sense of betrayal) responses, which, in turn, impact purchase intentions and word-of-mouth behaviors. The study also considers the moderating role of self-brand connection, highlighting how strong identification with a startup brand intensifies negative responses to unmet expectations. By addressing gaps in understanding consumer behavior post-acquisition, this conceptual framework emphasizes the critical interplay between consumer expectations, brand performance, and emotional connections. Findings are expected to provide strategic insights for acquirers and startups, helping them navigate potential consumer backlash and preserve loyalty by maintaining brand authenticity and fostering positive consumer relationships.
Keywords: acquisition, startup, consumer reaction, expectation disconfirmation, post-acquisition product offerings
How to Cite:
Shin, D. C., (2025) “Beyond the Buyout: Unveiling Consumer Reactions After a Startup Acquisition”, International Textile and Apparel Association Annual Conference Proceedings 81(1). doi: https://doi.org/10.31274/itaa.18907
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