Final answer:
Buyers choose a brokerage firm based on factors such as franchise reputation, friend recommendations, local firm reputation, and familiarity with the broker, all of which are influenced by the firm's dedication to its reputation and the pursuit of repeat customers and recommendations.
Step-by-step explanation:
Potential buyers often select a brokerage firm or broker/salesperson based on a variety of factors. These include the reputation of a franchise, recommendations of friends, the local reputation of the firm, and personal familiarity with the broker.
Buyers are motivated by the belief that the service will provide satisfaction, and this belief is heavily influenced by the information available about the firm's quality. A firm that cares about its reputation signals to customers that it is less likely to provide a poor quality service.
Hence, firms striving for repeat customers place a high value on maintaining a good reputation because satisfied customers are more likely to recommend the business to others. For instance, a grocery store with a good reputation can command higher prices, suggesting that a brokerage firm with a similar level of esteem could be more appealing to potential clients.