Family brand identity 'helps sales'
Article Date: Aug 18 2008Marketing 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.
