Consumer loyalty to family versus non-family business: The roles of store image, trust and satisfaction

Abstract This study sheds insight on how consumers perceive and relate to family and non-family grocery stores. Using a critical incident approach we show that—compared to non-family businesses—consumers evaluate family businesses better in terms of service, frontline employee benevolence, and problem-solving orientation, and worse in terms of selection and price/value. Results further indicate higher consumer trust in family business management policies and practices, frontline employee trust, and satisfaction but no differences in loyalty. Examining an integrative loyalty framework, the study finally shows differential effects in how image elements influence customer loyalty directly as well as indirectly through trust and satisfaction. Implications focus on advancing customer relationship management in retailing, and on successfully positioning family-owned and -operated businesses.

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