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by Chika Nwaka

Social media makes businesses more available and more vulnerable.

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Businesses falsify or misrepresent their competencies because they know that it can improve their bottom line. The more customers who can be persuaded that a business is trustworthy, the more likely they are to make use of its goods and services. A business misrepresenting its competencies often incurs a cost. Despite the huge profit margins that a business may get at the onset, it can quickly lose customers if they become frustrated or disappointed with their experience.

Time in Business

Businesses often misrepresent their length of time in business, since customers often use time in business as a way to judge credibility. If they believe a business has been around for a long time, they are more likely to put their trust in its products or services, and also are more likely to judge the business owners or managers as knowledgeable.

Licensing Information

Businesses either falsify their licensing information, or they claim that they have acquired various licenses that they have not. Some businesses also deliberately fail to get competency licenses so that they do not have to maintain the standards of the licensing agency and subject themselves to constant scrutiny.

Environmental Consciousness

With more and more people gaining consciousness of their carbon footprint and looking for ways to reduce it, businesses are catching on that if they claim to be conscious about the environment, they likely will attract customers who do not care about the environment as well as those who are passionate about environmental causes. Businesses that want to capitalize on the trend may claim that their products are environmentally friendly or that they are run in an environmentally conscious manner when neither may be the case.

False Advertising

Another often misrepresented competency of businesses is the quality of their goods or services. Customers may complain that the good delivered or services rendered did not match what they were expecting. This often happens because the company promised more than it could deliver. Businesses also falsify or misrepresent their Better Business Bureau rating because they know that savvy customers may perceive that as a stamp of approval.

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About the Author

Chika Nwaka started writing professionally in 2010. She writes for eHow and specializes in education and fashion-related topics. She earned a Bachelor of Arts in English from the University of California-Los Angeles and is pursuing a Ph.D. in English literature from the University of Wisconsin-Madison.

Photo Credits

  • Jupiterimages/Brand X Pictures/Getty Images
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