Chapter Two

The Loyalty Test

Why we expect companies and brands to commit to us first

Pretend for a moment that you work in the procurement department of a large hospital. Over your morning coffee, you notice a Wall Street Journal story about the company that sells you dressings and bandages. Profits at the company doubled in the previous quarter, and the stock price rose by 8 percent to $39 per share.

You might consider this nice news, because this same medical supply company is one of the vendors you use. But you also know first-hand what’s really behind that glowing profit report. For the past two years, this company has been trimming its payrolls to please Wall Street, and your service has suffered as a result. Billing mistakes have popped ...

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