Survival of traditional retail: the impact of consumer social awareness on the evolution of commerce

Abstract

Purpose – The study aims to analyze the purchasing preferences of Spanish and Portuguese consumers, their categorization and association with family firms in the retail sector. Design/methodology/approach – Using quantitative techniques, the study analyzes the intangible factors that influence the purchasing process of Spanish and Portuguese consumers and their association with different business models in the retail sector. Based on survey data collected from 481 participants, and from the perspective of willingness-to-pay and the triple-bottom-line, the study examines the main factors influencing the choice of purchasing channel. Findings – The results show that the viability of traditional family retail business models is conditioned by emotional factors and the pursuit of sustainability. Trust, social awareness and the sustainability of family businesses are highly valued factors that offset aspects such as price. Therefore, the competitiveness of family-owned stores depends on trust in family legacy and an appeal to social, environmental and animal awareness beyond purely economic criteria. Consequently, the results suggest a hopeful outlook for the viability of family retail businesses if social awareness is encouraged by policy makers and community stakeholders according to willingness-to-pay and the triple-bottom-line theories. Originality/value – The retail sector has undergone profound changes in its business models due to social trends evolution and, above all, the implementation of new technologies. As a result of this shift, official statistics reflect a constant closure of small family-run businesses. However, the association of critical intangible factors with either traditional retail or e-commerce by consumers remains scarcely analyzed within the family business domain.