Reputation is a crucial aspect of gameplay in The Elder Scrolls II: Daggerfall. Even if socialization is not a player's primary motivation, it behooves them to be aware of the connection between their words and actions towards NPCs. There is little that happens in the game without a reason. If one spends their time insulting others or otherwise treating them unkindly, they will begin to receive hostile dialogue from other NPCs. Likewise, treating others with respect gains positive reputation points.
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