If an entrepreneur promises more than the service delivered, what is the biggest loss?
Answer and explanation
Correct answer: Damage to trust and reputation
When delivery falls below the promise, customers feel misled and disappointed. Repeated disappointment reduces trust, complaints may increase, and customers may stop returning or recommend competitors. A damaged reputation can therefore harm future sales more seriously than the immediate transaction helps. Accurate promises and reliable delivery are essential for satisfaction. Overpromising does not create legal exemption or eliminate costs.
Frequently asked questions
What is the correct answer to this question?
Damage to trust and reputation
Why is this the correct answer?
When delivery falls below the promise, customers feel misled and disappointed. Repeated disappointment reduces trust, complaints may increase, and customers may stop returning or recommend competitors. A damaged reputation can therefore harm future sales more seriously than the immediate transaction helps. Accurate promises and reliable delivery are essential for satisfaction. Overpromising does not create legal exemption or eliminate costs.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Social Responsibilities of Business and Business Ethics. Topic: Business Ethics.
