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Why a company’s reputation and its components are important
The level of trust in a business depends on many factors, including the information about the business that customers see on social networks, in the media, and on websites. The company’s reputation depends on the way in which this information is posted. It is important to regularly monitor the references about the business, and the formation of its image in the media, in order to react on time to negative assessments.
Various ratings assess the reputation of companies, one of the most famous among them is The Axios Harris Poll 100. It is compiled each year based on a survey of 40,000 U.S. residents. Respondents are asked to name the companies that they think have the best and worst reputations in the market. When the 100 businesses are selected, people rate them on several other parameters, such as credibility, product quality, and others.
According to the 2021 ranking, Patagonia, which makes outdoor apparel, was the cleanest in terms of reputation. However, The Axios Harris Poll 100 is conducted exclusively in the U.S., so it can only show a picture of one country’s market.
Another popular ranking is from Fortune, which analyzes the reputation of companies on a broader scale of factors than in the case of the previous list. In this case, the magazine evaluates 640 businesses from 28 countries that have the largest revenues in the global market. The respondents here are not ordinary people, but top managers, analysts, and executives. Each of the respondents evaluates companies in their area of expertise, and their opinion is considered an expert. Next, respondents name 10 brands that they are most impressed with. The result is a list of 50 companies that are considered the most respected and attractive from an investment point of view. For example, last year, Apple, Pfizer, Amazon, and Walt Disney topped the list. And these companies are not necessarily the best in their niche.
One important component of reputation is the evaluation of the quality of a company’s products or services. It is important for any business to have only positive feedback on its products. And in the case of negative comments, it is necessary to respond to them promptly, understand the reasons and seek a solution to the problem. It should be understood that the consequence of a bad review may not be the poor quality of the product, but the lack of awareness of it. However, even if the company has a great product, it is necessary to communicate this fact to the audience, carrying out a comprehensive positioning in the market.
Recently the social position of the company has had an important influence on its reputation. Consumers have a better attitude towards brands that take care of the environment, support the rights of different categories of people, and do charity. So now to win the trust of consumers it is not enough just to produce a good product, it is important to be a company that is actively involved in the problems people care about.