Reputation, Stock Price, and You: Why the Market Rewards Some Companies and Punishes Others

Customers

Repetition makes reputation and reputation makes customers.

—Elizabeth Arden

Customers are thoughtful people. They have choices. Customers may act on behalf of themselves or their households, businesses, or government offices. But regardless of who foots the bill, customers are intelligent decision makers. When they make a decision, three major factors are in play: price, quality, and reputation.^1,2,3 Moreover, unless price is the only consideration by virtue of a “lowest bid” mandate, reputation will reduce customers’ sensitivity to price, increase sales volume, and accelerate the speed with which purchase decisions are made.

This ...