A majority of consumers are willing to pay extra to businesses with good reputations even if they can buy the products or services elsewhere at a lower price.
That is the finding of a new survey carried out by the CBI.
Almost half (48 per cent) of those who responded to the survey said that outstanding customer service was most likely to build a firm's reputation.
A third said that products and services which matched expectations were the most important factor in establishing trust in a business.
Some 58 per cent of consumers claimed that they would be happy to pay more for items or services from well regarded firms, with 43 per cent saying that even an extra five per cent on the price compared to rival businesses would not deter them from staying with their preferred company.
Richard Lambert, the CBI's director general, said of the findings: "What comes through in our survey is that great reputations rest or fall on delivery. Whether the promise is of quality, fun, value or luxury, the 21st century customer is savvy enough to sniff out and avoid the shoddy or disappointing."
Consumers tend to trust firms when they know more about them. Some 57 per cent said they would act as an advocate for their favourite businesses, talking positively to others about its products or services.
Poor customer service was believed by 20 per cent as most likely to harm a reputation, while a third (30 per cent) considered products that failed to live up to expectations were most to blame.
Date:20 November 2007
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