Family run businesses existing today usually originated in the early and middle of the twentieth century and are therefore older as compared to the modern corporate business structures. The older family businesses usually have lower sales, less number of employees, fewer full time employees on permanent contracts; smaller share capital and the majority of the board members are shareholders (Gallo, 2004). The author feels that family run businesses have usually are found lacking in a long term business policy which retards their capability for growth and evolution. This spells a doom for such ventures in the fiercely competitive business world today.
Family run businesses (FRB) have however been able to score better than non family businesses (NFB) in terms of customer loyalty due to their exclusive image and the trust they have been able to nurture in the minds of the consumers (Orth & Green, 2008). The superior customer relationship they have been able to nurture allows them to enjoy a competitive advantage over NFBs. Obsession with the quality of the products and services they offer and a genuine desire to provide outstanding services are the hallmarks of FRBs. The authors have short listed grocery stores for an analysis of performance of business and customer loyalty by conducting a comparative analysis about the customers’ perception of FRB and NFB (Orth & Green, 2008). They felt that opening of grocery sections by supermarket chains like Walmart and Kmart have stirred a competition which threatens to switch customer loyalty from their traditionally family run grocery stores by offering them better products at lower prices. Image, trust, satisfaction, loyalty and comprehensive relationships model were the focus of research in this study. The authors confirmed the pre established fact that a store image was the main factor for