Should a family firm communicate their family identity and country of origin? A cross-cultural study from Chile and Spain

Abstract

Purpose – This paper investigates the influence of firms’ communication in terms of family firm identity and country-of-origin on consumer response. Design/methodology/approach – A self-supplied online experiment in Chile and Spain is employed using as dependent variables brand trust and intention to buy. The experiment includes the following factors: family firm identity (family vs non-family), country of origin (national vs foreign) and as a manipulation check (type of product: hedonic vs utilitarian). Findings – The results indicate that communicating the family firm identity increases brand trust and purchase intention. Consumers show higher scores on trust and purchase intention when exposed to national country of origin products. The effect of the variability on the dependent variables is greater when the family firm identity is communicated. Trust and purchase intention are different in Chilean and Spanish consumers when the family firm identity is combined with a national country of origin cue. Originality/value – This article contributes to family business theory by exploring how to capitalize on the family firm identity component in brand communication. It also contributes to the theory of corporate brand identity by proposing a communication model oriented toward consumer behavior. It also examines firms’ communication (family firm identity and country-of-origin) on consumer.