Family brand identity 'helps sales'
Aug 18 2008
Marketing a firm as a family business can help increase sales, a new study finds.
American researchers questioned family business leaders and found they tend to influence purchasing decisions by reminding consumers their money will benefit a family, rather than faceless shareholders.
In a paper published in the Journal of Small Business Management, Dr Justin Craig, Dr Clay Dibrell and Dr Peter Davis claim that being a family firm and telling customers so gives significant added value and is a competitive advantage over other companies.
According to the academics, the use of a family name is also one of the reasons for the importance such firms place on helping the community - by doing so they can raise the profile of their business and build up a good reputation.
'Our results suggest that family-based brand identity enhances the family business' ability to persuade customers to make purchasing decisions based on the perceived attributes of the seller,' the authors explain.
A Capital Economics report for the Institute of Family Business has found that family firms are 'a key component of the private sector', helping to drive wealth creation and employment.
There are currently no comments on this article
Comments