IGCSE, A Level Business Student Forum

[KN] A new business without a brand reputation struggles to gain customer trust.
[APP] For example, customers may hesitate to buy from a new clothing brand when they already trust known brands like Nike or Adidas.
[AN] This means potential customers avoid trying the new product leading to low initial sales and fewer returning customers which makes it difficult for the business to cover up its costs so it cannot grow or even survive in its early stage.

[KN] If its a new business due to lack of brand image the consumers may not trust or recognize the business easily
[APP]e.g. A business decides to sell laptops and it may find difficult to convince people to buy their products as there are existing brands like dell and hp.
[AN] This makes it harder to attract customers and will create difficulties for the business as there will be lower sales because of which they will have to spend more on marketing increasing the costs of the business decreasing the profits of the business.

KN: This can be a major problem as the customers already have brands they trust and buy from.
APP: For instance, a person already buying food from McDonald's will hesitate to trust a new local restaurant.
AN: Due to this the new business will not be able to build a steady customer by base, therefore not able to make initial sales, die to which they will not be able to earn revenue or profits which could later be reinvested on the business to improve the quality of the food or to introduce new dishes, this brand reputation being a major issue for the startups.

(KN)
Brand reputation is how much customers trust and recognize a business and its product .New businesses usually don't have this trust at the start .
(APP)
For example a new smartphone company might struggle to attract customers because people prefer well known brands like Samsung or Apple.
(AN)
This means customers may hesitate to buy from the new business as they are unsure about the products quality or reliability. As a result the business may have low sales and slow growth making it difficult to compete or cover its costs in the early stages.

[KN]new business would have a bit brand reputation or zero so often struggles to build customer trust as its products are not yet known in the market.
[APP]For instance,a new local coffee shop may find it hard to attract customers who prefer established brands like Starbucks.
[AN]This lack of trust leads to lower customer confidence which mean fewer people are willing to buy resulting in low initial sales which means less revenue is generated which limits the ability to reinvest in marketing hence slows down brand recognition.

Lack of brand reputation would mean a business is not yet known not trusted enough whch makes atrracting cutomers harder
for example a new bakery offering gluten free items
without a strong reputation, customers would not risk buying the products, hence business would have to spend more on marketing, increasing cost, even tho revenue is low, if this continues there money would drain eventually having to take up a loan.

[KN]: Lack of brand reputation for a new business can be a major problem as it makes it difficult for the business to gain customer's trust.
[APP]: For example, a new local fast food restaurant would find it hard to attract customer's who prefer established brands like Mc Donald's or Kfc.
[AN]: Thus, this lack of trust leads fewer customers which leads to low initial sales which causes less revenue and leads to failure of business.

[KN] Brand reputation refers to how well-known and trusted a business is by customers.
[APP] A new business, such as a start-up clothing brand, often lacks recognition and customer trust compared to established competitors.
[AN] This makes customers hesitant to try its products, leads to difficulty generating early sales and building a loyal customer base and slows business growth because revenue and word-of-mouth marketing remain limited.

kn:a lack of brand reputation means customers do not yet recognise or trust the business.
app:When a business is new consumers may hesitate to buy from it because they are unsure about the products quality or reliability.this makes it difficult for the business to attract first time buyers and build a customer base.
an:As a result initial sales remain low and the business may struggle to survive in a competitive market.

{KN}A new business with no established brand reputation may find it difficult to attract customers and build trust in the market.
{APP}For example, a new mobile phone company launching its first smartphone may struggle to convince consumers to buy its product instead of well-known brands like Apple or Samsung. Customers are often reluctant to take risks on unfamiliar brands because they are unsure about product quality or reliability.
{AN}This lack of trust can lead to low initial sales and slow revenue growth, making it harder for the business to cover costs or reinvest in marketing. As a result, the new business may find it challenging to survive in competitive markets where brand image and customer loyalty play a key role in success.