Jeff Cavanaugh wrote:Whole Foods and Trader Joe's are both known for doing stuff like this - giving away items for free, opening packages to let customers sample them, etc - that hurt the bottom line immediately but do a lot to promote customer loyalty over the long run.
One of the most horrifying things about MBA-driven management is the widespread loss of understanding of this simple point in the corporate world, and it explains why management driven entirely by the quarterly balance sheet inspires a quick race to the bottom.