A new study has found that marketing a firm as a family business can help boost sales.

Researchers in America surveyed family business leaders and found that they could influence purchasing decisions by reminding customers that their money will benefit a family rather than faceless shareholders.

The paper was published in the Journal of Small Business Management, and was written by Dr Justin Craig, Dr Clay Dibrell and Dr Peter Davis, who claim that being in a family firm and telling customers so, gives them significant added value over other companies.

According to the study, the use of a family name is one of the reasons for the importance such firms place on helping the community.

“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.

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