O que significa People will naturally prefer buying from big companies with well-known reputations on the line. ?

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@tinfsau it does imply reputations at risk. People prefer to purchase from large companies with good reputations because of their well known reputations. Companies with a good reputation generally want to guard and protect that reputation by living up to it. If their products don’t perform in line with their reputation, they are at risk of losing their good reputation.

However, it is not uncommon for a company with a great reputation to be purchased by another company who uses the brand name of the original company to sell inferior products. Initially, based on the reputation of the original company, people trust the products and but them, but I’ve time, people begin to realize what happened and stop trusting that brand. However, the halo effect of a brand with a good reputation can last for a long time after the products become inferior because not everyone who buys things researches current reviews. If they already have a sense that a brand is trustworthy and reliable, they will often rely on that belief, rather than do more research.