The effect of mergers and acquisitions on customer–company relationships

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.,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.,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.,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.,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.