Strategic Alliances in E-Commerce: Lessons from the Big Basket-Tata Digital Merger

Purpose– With the global trend towards virtualization and the impact of the COVID-19 pandemic, the necessity of digitization has emerged as a critical factor in maintaining a reliable flow of goods to households. Notably, the growth and widespread adoption of e-commerce and e-pharmacy platforms in India have garnered substantial attention from prominent corporate entities, including Amazon, Reliance, and Tata. The purpose of this study is to evaluate the influence of Consumer-Based Brand Equity (CBBE) of Big Basket on consumer purchase intentions subsequent to its acquisition by Tata Digital. The study aims to understand how the brand perception and equity of Big Basket among consumers affect their inclination to make purchases following the acquisition under Tata Digital’s ownership. Design/Methodology/Approach– The instrument used in field survey covered the items for brand awareness, perceived quality, brand association, brand loyalty and brand equity. Components of CBBE Model are Brand Loyalty, Brand Awareness, Perceived Quality and Brand Image. The study is based on Primary as well as Secondary data. Primary data was collected using Questionnaire Survey Method. Data was received from 149 respondents. After cleaning, 135 respondents’ data was used for the analysis. Findings– The empirical evidence concerning the acquisition of Big Basket by Tata Digital reveals a significant influence on Consumers’ Purchase Intention. Notably, 96% of the respondents indicated a clear intention to either increase their buying frequency with Big Basket or maintain it at the current level. As a result, it can be reasonably concluded that Consumer-Based Brand Equity plays a vital and positive role in shaping the Purchase Intention of consumers. Originality/Value– The current study focusses on the impact of acquisition in terms of Digital Integration in e-Retail segment. Here the study contributes towards extending the CBBE Model by including new variables.