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Big names vs family-based brands: which one would you choose?

Two similar products. One is a well-known multinational brand. The other is a family-based brand. Which one would you choose?

In a study published in the Journal of Small Business Management, association with a family business can actually give a product the leading edge.

The reasons for this positive impact on customers’ decision can be complex and many but a few stand out:

  • Customers are happy to know there is a family behind the brand and not just some faceless corporate identity.
  • Family businesses are perceived to put high priority on community involvement.
  • Family businesses signify pride – pride in what they do and what they can contribute.

Family businesses are important to the economy. It is estimated that small family enterprises account for 80% of all business in the US, contribute 50% to GDP, and 78% of new jobs.

However, in recent years, more and more family businesses are being swallowed by corporate giants. The authors of the study conclude that by communicating family pride to customers, these businesses can actually have competitive advantages over their giant competitors. Small can be great!

So tell us what is your take on this. Big firm names or family-based brands?

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