Investigating consumers' brand loyalty in small family-owned businesses in the Stilfontein area, North West Province

Abstract

The significance of family-owned businesses extends across various domains, encompassing employment, economic contribution, and scholarly interest. Family-owned businesses constitute a substantial portion of the workforce and GDP in the United States. Similarly, family enterprises significantly influence South Africa's economic growth. Extensive research has explored different aspects of family businesses, such as financial performance, governance, and succession planning. However, a gap exists in understanding consumer loyalty towards family-owned brands. This study addresses this gap by investigating the factors driving consumer loyalty to family-owned businesses, particularly in the town of Stilfontein in the North West Province, South Africa. This study is guided by an interpretivist paradigm, employing an inductive approach to qualitative research. Data collection involves semi-structured interviews with participants sampled through a non-probability method. Interviews with customers of family businesses are conducted to gather insights into brand loyalty. The subsequent data analysis reveals several themes and sub-themes that explain the factors contributing to consumer loyalty toward small family-owned businesses in Stilfontein. The emergent themes highlight the importance of community bonds, personalised services, product quality, and symbiotic relationships in driving consumer loyalty. Participants emphasise their preference for supporting local family-owned businesses, citing a deep connection to the community and a commitment to local economic growth. Managerial visibility, employee alignment with values, and quality interactions are vital in fostering customer loyalty. The findings underscore the intricate interplay of factors contributing to consumer brand loyalty in family-owned businesses. While the study enriches the understanding of consumer behaviour and loyalty, it also identifies limitations such as geographical constraints and sampling scope. This research opens avenues for future exploration in diverse regions and a broader range of family-owned businesses.