Customers Trust: What Firms Need To Know

autor: Project7708 | 2020-08-11, 23:20 |

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In a competitive market today, every firm strives to have dominion in whatever goods and services they render. Firms do not only strive for dominion they also strive for good reputation. In order to achieve this, firms must have a good and effective communication with their customers as they are one of the most important stakeholders who are responsible for the creation 0of revenue streams. Firms need to build good reputation because it exerts some sort of influence on both commercial outcomes like profits and non-commercial outcomes like customer trust. One of the qualities a firm should strive for is try to build customers trust.
Read some undergraduate project topics on customer trust
It is therefore expected that firms behave well devoid of any kind of negative attitude and behaviour towards their customers as well as meet customers’ expectations. This will go a long way in strengthening the trust customers have on the firm as well as build firms integrity and reliability.
Customers Trust: What Firms Need To Know
There are some certain things firm must know if they must grow in the competitive market and have the trust of their customers. What every firm need to know are as follows:
i) Reputation: reputation is one among many other things firm need to know. The reputation of a firm matters a lot and its importance cannot be overemphasized because it is one of the reason customers choose product or service above the other or prefers to patronize a firm over the other thereby creating customer loyalty and consistence patronage. It is also a factor that makes lots of difference between the success and failure of a firm.
In terms of customers trust, comparison with other firms and patronage, reputation plays a big role. In other words, the reputation of a firm is a representation of a firm’s status among its employees and external stakeholders.
The strategic behavioural pattern, decision making, planning function and noticeable characteristics of a firm is greatly affected by the reputation of a firm which is important to its growth and survival. It has also been studied that a firm’s reputation is its identity that is interpreted as a firm’s goals and values which create a sense of belonging among the external stakeholders of the firm.
Furthermore, reputation has also been observed as a successful strategy in marketing the products and services of a firm. The intangible assets of a firm in general and the significance of firms reputation in particular have grown rapidly which has helped in creating market entry barriers, to foster customer retention, and thus to strengthen competitive advantages, intangible assets are vitally very important to the growth, survival and retention of customers.
ii) Trust: Trust is the level of reliability ensured by one party to another within a given exchange relationship. In a marketing context, trust is usually linked to consumer expectations concerning the firm’s capacity to assume its obligations and keep its promises. However these expectations are based on the firm’s competence, honesty, benevolence and reputation.
Firms must understand that trust helps in maintaining customer loyalty and retention. Trust of Consumers to a firm is that which they expect the firm to act based upon their interests. Firms must do what they say; it should be what you see is what you get and not the other way round. Promises are to be respected as advertised.
In general, one effective way of reducing a consumer’s uncertainty and disloyalty is the trust built by a firm.
iii) Quality products/ services: another way to build customers trust is through quality products. Once your consumers are certain about the quality of your products or services they will have an uncompromised loyalty and trust for the firm and would even refer others to the product or service of the firm with assurance of good quality. Firms must try not to compromise quality for quantity or under perform as expected by their customers.
In conclusion, customers trust is mainly earned through hard work and consistence and shouldn’t be lost over incompetence, under performance and lack of consistence. The reputation of a firm says a lot about the value placed on it by consumers and stakeholders.
Any firm that strives to be the best and grow must not neglect the importance of reputation which is also an important source of competitive advantage. Good reputations are very critical not only because of their potential for value creation, but also because their intangible character makes replication by competing firms considerably more difficult.
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