In families we trust: Family firm branding and consumer’s reaction to product harm crisis

Abstract

This research examines the impact of family firm branding on consumer attitude and forgiveness during product harm crisis. Two well-powered experimental studies (N = 604) show that consumers are more likely to forgive and maintain favorable attitudes towards family firm brands than non-family firm brands following a product harm crisis. These relationships are mediated by consumers' higher trust in family firm brands. Even when firms are caught engaging in questionable impression management tactics in the aftermath of such a crisis, family firms retain their advantage over non-family firms. The findings contribute to the literature on family firm branding and product harm crisis and have important implications for practice.