MY father has always been a fan of Toyota vehicles. He believes Toyota makes the best cars in the whole world (I bet your father does too).
Even when I was looking forward to buying my first car, dad made sure it was a Toyota. People who buy Toyota vehicles are said to buy them not necessarily for their looks, but because they have confidence in the quality and safety of the vehicle.
Secondly, Toyota vehicles generally have a strong reputation for resale value.
This is particularly important in our country as most of us buy and sell used cars.
For years (until recently) Toyota Motor was the automaker that could not go wrong.
Since 2010, however, they have had several recalls on some of their models. This has damaged their reputation in some parts of the world. In most parts, however, Toyota is still the brand of choice.
Corporate reputation is built on external and internal stakeholders’ perceptions. While an intangible concept, having a good reputation can benefit a business in a multitude of ways.
Benefits of a good reputation can be summarised as follows:
- A good reputation is a marketing strategy. Your customers will become brand-ambassadors and will market your products to their contacts on your behalf,
- The reputation of an organisation can enable a company to differentiate its product in highly competitive markets,
- It supports an organisation in times of crisis or controversy. Despite the recalls Toyota has had in the past few years, it still has loyal customers. The number of new Toyota vehicles on our roads is a sure sign of that,
- Consumers may have a preference for that company even if there are similar businesses offering the same products or services for different prices,
- A good reputation allows an organisation to charge premium prices. When looking at vehicles in the same league, Toyota enjoys premium prices in comparison to its competitors.
- A solid reputation facilitates international expansion. Need I say more? Toyota is found the world over,
- A good reputation helps you to win new business, retain existing customers, attract new employees, gain favourable media coverage and acts as a barrier against competitors.
While considered to be an intangible asset, maintaining a positive reputation is fundamental to the profitability, relevance, and existence of your business.