Which of the following is an effect of damaged reputation due to quality issues?

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A damaged reputation due to quality issues primarily leads to a loss of customers. When consumers perceive that a company's products do not meet their expectations for quality, they are likely to switch to competitors who offer more reliable or superior alternatives. This loss can significantly impact a business's sales and market share, as trust is a crucial element in consumer purchasing decisions.

Furthermore, the repercussions of a damaged reputation can manifest long-term, as rebuilding consumer trust can take time and significant effort. In many cases, negative customer experiences can lead to word-of-mouth reports, further exacerbating the issue by discouraging potential new customers from engaging with the brand. Thus, maintaining a good reputation is vital for retaining a loyal customer base and ensuring continued business success.

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