Family-based brand identity influences customers' purchasing decisions

Aug 14, 2008

A new study in the Journal of Small Business Management shows that promoting the fact that the business is a "family" business positively influences customer purchasing decisions.

Family businesses are very important to the U.S. economy. They comprise an estimated 80 percent of the 15 million businesses in the U.S., contribute to more than 50 percent of America's Gross Domestic Product, and generate 78 percent of new jobs in the economy. A new study in the Journal of Small Business Management shows that promoting the fact that the business is a "family" business positively influences customer purchasing decisions.

Justin B. Craig, Ph.D., Clay Dibrell, Ph.D., and Peter S. Davis, Ph.D. investigated whether family firms benefit from initiatives to develop and promote the family aspects of the company as a basis for competitive advantage, and thereby, enhance performance.

A survey of leaders drawn from 399 family businesses provided information regarding relationships among the extent of their efforts to promote their company's family-based brand identity, the extent to which they aligned their business with the needs of the customer, and company growth and profitability. .

The study showed that family businesses influence their target market purchase decisions by reminding them that there is a family behind the business and not a faceless corporate entity. In essence, there is significant added value and competitive advantage associated with promoting family involvement to customers. The authors suggest that this finding is linked to a family business' long-term strategic horizon, the high priority family businesses place on community involvement, and the reputational capital attributed to the family name all of which translates to a perception of greater value to the customer.

Source: Wiley

Explore further: Thomas Edison's 'lost' idea: A device to hear the dead

add to favorites email to friend print save as pdf

Related Stories

Clinton ran own computer system for her official emails

Mar 03, 2015

The computer server that transmitted and received Hillary Rodham Clinton's emails—on a private account she used exclusively for official business when she was secretary of state—traced back to an Internet ...

In Japan, robot dogs are for life - and death

Feb 25, 2015

Incense smoke wafts through the cold air of the centuries-old Buddhist temple as a priest chants a sutra, praying for the peaceful transition of the souls of the departed.

Korean tech start-ups offer life beyond Samsung

Feb 23, 2015

As an engineering major at Seoul's Yonsei University, Yoon Ja-Young was perfectly poised to follow the secure, lucrative and socially prized career path long-favoured by South Korea's elite graduates.

Recommended for you

Thomas Edison's 'lost' idea: A device to hear the dead

Mar 05, 2015

One of Thomas Edison's little-known ambitions was to build a device to hear the voices of the dead, according to a nearly lost chapter of the inventor's memoirs which is being republished in France this week.

Bribery 'hits 1.6 billion people a year'

Feb 27, 2015

A total of 1.6 billion people worldwide – nearly a quarter of the global population – are forced to pay bribes to gain access to everyday public services, according to a new book by academics at the Universities of Birmingham ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.