The effect of mergers and acquisitions on customer–company relationships

Abstract

Purpose The purpose of this paper is to explore employees’ perceptions about customers’ reactions to mergers and acquisitions (M&A). In particular, the aim is to explore how M&A in the banking sector affects the relationship between customers and the financial entity in a real-life context. Design/methodology/approach Using a case analysis methodology, this paper investigates the most important cases of M&A that occurred between 54 retail banks and saving banks in the Spanish market between 2009 and 2014. To do so, 36 face-to-face exploratory interviews were conducted amongst a sample of employees selected through a purposive sampling technique. Findings The perceptions of the employees about the impact of the M&A on customer relationship development suggest that financial M&A negatively affect prices, the location and closeness of the branches, and the routines of the financial activity, and positively affect products and services offered after the M&A. Research limitations/implications Given that the objective is to explore perceptions rather than test them, despite being insightful, the results of this study should be generalised with caution. Originality/value This paper explores customer responses and attitudes towards financial M&A from the point of view of marketing. This paper considers the effect that M&A changes generate on consumer satisfaction and bank−client long-term relationships.