Methodology of a Conjoint Study for Brand Acquisitions

Abstract

As the examination of real-world cases in chapter 3 has shown, brands are a key motive of food companies to acquire or merge with other firms. Hence, when selecting acquisition candidates, firms can be presumed to consider how the brands of target companies would enhance their pool of assets and resources. Generally, the assessment of potential targets depends on the acquirer’s specific motivation of pursuing M&As. According to the findings of chapter 3, brands are dominant M&A drivers along with the consideration of market share, distribution, and coverage of product categories. While the analysis of M&A motives of chapter 3 identifies primary motives underlying acquisition plans, it does not reveal the specific influence of each individual motive on firms’ M&A decisions. The real-world M&A analysis can thus be regarded as a macro study. To uncover the specific influence of each individual motive, a conjoint study is conducted. The conjoint study, therefore, is a kind of micro analysis, and thus complements the macro analysis of motives of chapter 3. Its design and findings will be presented in this chapter and in chapter 5.

“Strategic planning isn’t strategic thinking. One is analysis and the other is synthesis.”

—Henry Mintzberg

“Never let your data get in the way of your analysis.”

—Theodore Lowi, Professor of Political Science, Cornell University