- Published: Thu, Oct 27, 2022 08:46
Consumers are more likely to forgive family-owned brands than non-family-owned brands in crisis situations of product damage, according to new NEOMA Business School research.
A “product hazard crisis” is when a product does not comply with standards, resulting in the risk of widespread negative publicity for the brand in question.
According to Subhadeep Datta, Assistant Professor of Strategy and Entrepreneurship at NEOMA Business School, and Sourjo Mukherjee of Birla Institute of Technology, companies have been found to be engaging in questionable impression management tactics in the aftermath of such a crisis. Even if the family business is maintained. their advantage.
This is because family-run businesses have more human and relational values and virtues. As such, they tend to maintain a higher reputation and trust with consumers and stakeholders than non-family companies.
The researchers’ findings show that this trust is not a fleeting, fleeting feeling among consumers. Even in the face of hurdles such as product hazard crises, it is relatively resilient and hard to break down.
“Henceforth, it seems reasonable to expect a brand’s family-owned status to help it maintain its image and reputation after a crisis like this,” says Professor Datta.
A previous study by the Institute of Family Business (UK) showed that many family business owners and operators are concerned about how much family should be featured in branding.
Concerns were raised about perceived lack of professionalism and nepotism, and negative reactions to increased family recognition in crisis situations. However, the results of this new study “show that the positives far outweigh the possible negatives.”
Researchers believe the findings will help develop branding strategies for family businesses. This study was published in the Journal of Business Research.