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Reputation can be quantified and insured like any other business asset. Whereas a corporate brand is in essence a promise (e.g., your car will give you status), reputation is broader, more personalized and fragile. That's bad news for Donald Trump. Kossovsky describes reputation in the business context as the value reflected in the behavior of stakeholders. If you are a superb businessman with a sterling reputation, you'll see the value of reputation in higher prices you can demand, higher volume of sales, less turnover by employees, better terms from vendors and easier credit terms. People want to be in business with you. If, however, your reputation is that of a blowhard and sleazy guy, you're not going to be able to charge as much for hotel rooms (or fill them up), keep good employees and get favorable terms from vendors and creditors. You may even get harsher treatment from regulators and juries/judges who view you with suspicion. One way to tell if Trump has damaged his business reputation and therefore his own pocketbook will be, Kossovsky explains, if the price of licensing his name goes down in the future or worse, if licensees want to end their agreement. All of this is especially critical for Trump, whose name is the driver of his business value. In that respect he's like celebrity endorsers.
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