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What is Goodwill?
When a business has provided good service or product to their customers, the customers develop a trust for the business. They become repeat customers and they tell others what a good experience they had.
That creates a business asset called goodwill, in other words the good will of the customers toward the business.
The goodwill of a business is the whole advantage of the reputation and connection with customers together with the circumstances whether of habit or otherwise, which tend to make that connection permanent. It represents in connection with any business or business product the value of the attraction to the customers which the name and reputation possesses. Its elements can be market penetration, brand awareness, customer loyalty, size and quality of customer list, longevity in the marketplace, proprietary products, intellectual property, etc.
When a business has provided good service or product to their customers, the customers develop a trust for the business. They become repeat customers and they tell others what a good experience they had.
That creates a business asset called goodwill, in other words the good will of the customers toward the business.
The goodwill of a business is the whole advantage of the reputation and connection with customers together with the circumstances whether of habit or otherwise, which tend to make that connection permanent. It represents in connection with any business or business product the value of the attraction to the customers which the name and reputation possesses. Its elements can be market penetration, brand awareness, customer loyalty, size and quality of customer list, longevity in the marketplace, proprietary products, intellectual property, etc.