Final answer:
A business must deliver on its promise of quality to maintain positive customer relations. Offering a money-back guarantee can build trust and reassure customers, particularly for online sales where direct product inspection isn't possible. A strong reputation fosters repeat business and allows for premium pricing.
Step-by-step explanation:
To maintain positive customer relations, a business must deliver on its promise of quality. One way that businesses can reassure customers about the quality of their products is by offering a money-back guarantee, especially when selling goods through mail-order catalogs or over the web where the customer does not have the opportunity to see the product in person. This reassurance encourages customers to make a purchase despite uncertainties about the product, which can help build trust and foster positive customer relations.
The importance of a good reputation cannot be overstated. Firms that are concerned about their reputation tend to attract customers who are less worried about receiving a poor-quality product. This can be observed in various market scenarios, such as a well-established grocery store that can charge more than a temporary stand at a local farmer's market. Ultimately, policies like money-back guarantees help to establish a firm's reputation for quality, encourage repeat business, and generate recommendations from satisfied customers.