Excellent customer service, products and services that always live up to expectations are the most important characteristic when a firm build its reputation, according to a survey by the CBI.

The survey, conducted by YouGov1, found that among the 58% of consumers willing to pay more to their most highly regarded company, 43% would pay up to 5% over and above a cheaper price, 29% are happy to pay 6-10% more, while 16% would pay more than a 10% premium.

Richard Lambert, the CBI's director-general, says: "What comes through in our survey is that great reputations rest or fall on delivery. Whether the promise is of quality, fun, value or luxury, the 21st century customer is savvy enough to sniff out and avoid the shoddy or disappointing. Environmental credentials and social responsibility are also becoming increasingly more important to consumers' purchasing decisions.”

The survey suggests that people are inclined to trust companies best when they know more about them. It found 57% said they sometimes act as an advocate for their company, talking positively to others about its products or services, 38% said they trust the company they work for more than other firms, compared to only 11% who said the opposite.

Poor customer service was thought by 45% of respondents to most damage a good reputation and 30% said that products not living up to expectation were to blame.