What impact does a favorable public image have on a company?

A favorable public image significantly enhances customer trust and loyalty. When customers perceive a company positively, they are more likely to choose its products or services over competitors. This trust fosters a sense of loyalty, encouraging repeat business and long-term relationships. A positive reputation can lead to word-of-mouth recommendations, amplifying the company's reach and market presence.

In contrast, a negative public image can lead to skepticism among consumers, diminishing their willingness to purchase from that company. The other options do not capture the essence of how a favorable public image functions in the marketplace. While a positive image may simplify market entry by making stakeholders more receptive, it primarily serves to build customer trust and loyalty, which directly affects sales positively rather than negatively.