Question

Which one of the following actions helps increase a company's image rating/brand reputation?

1) Increasing advertising budget
2) Improving customer service
3) Reducing product prices
4) Expanding product line

Answer 1

Improving customer service directly impacts a company's image and reputation by fostering customer satisfaction and loyalty, leading to repeat business and referrals.

Step-by-step explanation:

To increase a company's image rating or brand reputation, improving customer service is a crucial action. While all options presented, such as increasing the advertising budget, reducing product prices, and expanding the product line, can have an impact on a company's image, top-notch customer service directly affects customer satisfaction and loyalty. Excellent customer service leads to repeat customers and referrals, which are vital for a positive reputation. This, in turn, allows a company to charge premium prices, as seen in the example of a well-established grocery store vs. a temporary stand at a farmer's market.