Whose Loyalty is the Weakest: Consumer, Advertiser, or Investor Loyalty

Part of loyalty includes remaining faithful even when it may be disadvantageous. For instance, a loyal friend of yours may say “Don’t worry, I have your back,” meaning that your friend will, symbolically or even literally, make sure that you do not get blind sided. Regardless of what direction you are heading, a loyal friend will support you.

Recently, Google defied the Chinese governments desire to censor all internet activity by rerouting its Chinese search engine through Hong Kong to bypass the Chinese “Great Firewall”. A China Daily article titled, “Google’s Exit Is Not Exactly A Windfall Foe Baidu” by Wang Xing, discusses consumers and advertisers reactions to this event.

Not surprisingly, “many of the company’s domestic partners and advertisers were scared away on fears that Google’s sour relationship with the government might impact them.” Investors also shied away from Google. Fearing Google’s ability to earn revenue from China investor’s sold their shares. Google’s stock price ultimately dropped by about 9%. Granted Google’s stock price has bounced back, it is still below its pre-China ordeal price.

But consumer have stayed loyal to Google. “Figures from Alexa [Internet] show that most of the traffic from Google.cn has been picked up by Google.com.hk, of which user visits surged 2,056 percent over the past week.”

How loyal are your customers, your investors, and your advertisers or suppliers? Would they risk government repercussions to remain loyal to your business? Would they support your business during rough times? If not, what steps are you taking right now to build their loyalty?

Link: www.chinadaily.com.cn/bizchina/2010-04/02/content_9680226.htm


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