EconPapers    
Economics at your fingertips  
 

IS TWO ALWAYS BETTER THAN ONE? Customer Perception on the Merger of Startup Decacorn Companies

Ilham Fauzan Putra (), Nila Armelia Windasari (), Gita Hindrawati () and Prawira Fajarindra Belgiawan ()
Additional contact information
Ilham Fauzan Putra: School of Business and Management, Institut Teknologi Bandung, Bandung 40132, Indonesia
Nila Armelia Windasari: School of Business and Management, Institut Teknologi Bandung, Bandung 40132, Indonesia
Gita Hindrawati: School of Business and Management, Institut Teknologi Bandung, Bandung 40132, Indonesia
Prawira Fajarindra Belgiawan: School of Business and Management, Institut Teknologi Bandung, Bandung 40132, Indonesia

JOItmC, 2021, vol. 7, issue 4, 1-22

Abstract: Recently, the two decacorn Startups in Indonesia decided to collaborate with a merger scheme and accumulate over 100 million monthly active users. The Merger triggers a new perception for customers and has an impact on the level of Brand Loyalty. However, no research examines how customer perception to mergers between the startup with decacorn status. Therefore, this study intends to fill this gap. Using the mix method approach, this study investigates how customer perception of startups’ mergers decacorn status and examines its effect on customer behavior. The findings revealed that customer self-congruency successfully mediates the research gap between customer perceptions on merger scheme (sig. 0.000 < 0.05, β = 0.575) and purchase intention (sig. 0.000 < 0.005, β = 0.390) by combining impulse buying strategies (sig. 0.003 < 0.05, β = 0.329). The paper contributes theoretically to the body of knowledge in the customer’s perception of the merging company. The study also gives new insight that customers’ perception of the Merger of two decacorn companies cannot guarantee that customers will be loyal to the company without connecting the customer self-congruency in each partner. It is recommended that the manager gain stimulus in building conformity of company image with customer perceptions that create self-congruency.

Keywords: brand loyalty; customer self-congruency; customer perception; impulse buying; merger and acquisition; purchase intention; startup (search for similar items in EconPapers)
JEL-codes: M (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/2199-8531/7/4/239/pdf (application/pdf)
https://www.mdpi.com/2199-8531/7/4/239/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:joitmc:v:7:y:2021:i:4:p:239-:d:693998

Access Statistics for this article

JOItmC is currently edited by Ms. Bella Yu

More articles in JOItmC from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().

 
Page updated 2022-02-21
Handle: RePEc:gam:joitmc:v:7:y:2021:i:4:p:239-:d:693998