Why are reputation and customer loyalty important to a company?
A)They raise the market demand for a product.
B)They raise the cost to customers if they switch to another provider.
C)They render the company less likely to lose customers to new firms entering the market.
D)They encourage excellence in the industry, raising customer satisfaction across companies.

Question

Quizplus · Accepted Answer

Reputation and customer loyalty make the company less likely to lose customers to new firms entering the market, which helps in retaining existing customers and acquiring new ones. This reduces the risk of losing market share and increases the chances of long-term success.

Why Are Reputation and Customer Loyalty Important to a Company