Brand mergers in competition markets: The case of automotive sector

Nowadays, even the most differentiated products can be easily imitated, making it difficult to uniquely locate new products on the market. In order to reduce the impact of these negativities, to contribute to the brand value, to be preferable by consumers and to gain a strategic advantage over their competitors, businesses have turned to brand merger strategies. The creation of brand mergers is one of the most critical marketing decisions for businesses. Increasing their awareness, connotations, perceived quality and loyalty levels of brands in the mentioned merger activities may increase their value in the eyes of consumers and contribute to the strengthening of brand value. For this purpose, some automotive companies may prefer brand mergers in order to increase their profitability and at the same time to open to different markets.