Once developed, a firm's reputation can last a long time, even if the basis for that reputation no longer exists.

Question

Quizplus · Accepted Answer

This statement is true. Once a firm develops a reputation, it can be difficult to change that reputation even if the basis for that reputation no longer exists. Reputation can be influenced by factors such as past performance, word-of-mouth, and media coverage. As a result, a firm's reputation can continue to influence customer perceptions and behavior long after the initial basis for that reputation has changed.

Once Developed, a Firm's Reputation Can Last a Long Time