Which are America’s Most Disliked Companies?

More than a few perennial “favorites” … plus a couple newcomers.

yuck factorI’ve blogged before about the companies Americans love to hate.  And now, 24/7 Wall St. has published this year’s list of America’s most disliked companies.  As the equity investment data aggregator and investment firm describes it:

“To be truly hated, a company must alienate a large number of people.  It may irritate consumers with bad customer service, upset employees by paying low wages and disappoint Wall Street with underwhelming returns.   

For a small number of companies, such failures are intertwined.  These companies managed to antagonize more than just one group and have become widely disliked.”

In developing its list each year, 24/7 Wall St. reviews various metrics on customer service, employee satisfaction and share price performance.

Only companies with large customer bases are evaluated, based on the premise that for a company to be widely disliked, it needs to be known to a large number of people to begin with.

Among the sources reviewed by 24/7 Wall St. are the following:

This year’s list of the most disliked companies includes the following:

logo#1  General Motors — More than 30 million recalls pertaining to vehicular problems that have been linked to more than 40 deaths brings this company to the top of the list … along with a lot of dissembling about the issue.

#2  Sony — The hacking of the company’s computers and the resulting chaos surrounding the (non)-release of the movie The Interview was just the latest in a string of bad news, including a string of financial losses and fruitless reorganization attempts that seem more like rearranging the deck chairs on the Titanic than a recipe for righting the ship.

#3  DISH Network — Super-poor customer service ratings along with ongoing fights with the Fox network, leading to the blackout of popular programs that have done nothing but rile the customer base even more.

#4  McDonald’s — Its menu has lost favor with consumers — particularly when compared to competitors’ offerings.  Negative press about low employee wages doesn’t help, either.

#5  Bank of America — BofA can never seem to score above the average for its industry.  In fact, it’s been the least popular big bank in the ACSI surveys for years.  Even worse, Zogby Analytics has BofA with the second lowest share of “poor” reviews of any business in its 2014 customer service survey.  On top of that, the bank continues to have major problems in the mortgage sector, with a slew of fines levied to clean up mortgage practices that ran afoul of the U.S. regulators

#6  Uber — No doubt, this app-based ride sharing service is wildly popular with many users, even as it’s the bane of the traditional taxi business in major American and European urban centers.  But few companies so popular have faced as much controversy at the same time.  Perhaps it’s a natural side effect of being a disrupter in the market, but it’s caused many enemies for Uber in the process.

#7  Sprint Corporation — “The great disappearing phone service” might be one way to describe this firm.  Sprint has lost nearly 2.5 million customers in just the past two years.  In fact, it’s had 11 straight quarters of net decline in subscribers.  The result is lost employee jobs (2,000 and counting), along with reduced customer service and industry competitiveness.  And the share price of Sprint stock has fallen by half in the past year.

#8  Spirit Airlines — Imagine this list of maladies in the airline industry:  flight delays, long customer lines, invasive security, lost baggage, hidden fees.  Now imagine them all wrapped up in one air carrier and you have Spirit Airlines.  Enough said.

#9  Wal-Mart — According to ACSI, few companies have lower customer ratings than Wal-Mart.  It’s low even in comparison with other big-box discount and department stores, as well as supermarkets.  Its own employees also rate the company low — and there are 1.4 million of them, so their opinions really matter.  Meanwhile, some consumers see Wal-Mart as hurting or destroying local businesses wherever it chooses to open a store in a new community.

#10  Comcast — Whether we’re talking about its television or Internet services, this company comes in with really horrific customer satisfaction ratings.  They’re “standout bad” in an industry that’s infamous for poor customer care.  It didn’t help when a phone recording of a Comcast customer service representative went viral — the rep who took up nearly half an hour refusing to help a customer cancel his service.

[Interestingly a few companies that were on 24/7 Wall St.’s list last year no longer appear — notably retailers JCPenney and Abercrombie & Fitch.  For Penney’s in particular, it seemed a slam-dunk prediction that it would remain on the list this time around, but the company is actually in the midst of a modest turnaround — and consumers and investors have noticed.]

There’s another interesting and perhaps ironic factor about America’s “least liked” companies.  It’s that four of them also appear on the list of the ten most-advertised brands in the United States.

That is correct:  Based on 2013 U.S.-measured media ad spending as calculated by AdAge, Chevrolet (General Motors), McDonald’s, Walmart Stores and Sprint rank in the Top Ten list of the most-advertised brands:

  • untitled#1 AT&T
  • #2 Verizon
  • #3 GEICO
  • #4 Chevrolet (General Motors)
  • #5 McDonald’s
  • #6 Toyota
  • #7 Ford
  • #8 Walmart Stores
  • #9 Sprint
  • #10 Macy’s

Evidently, “all that advertising” isn’t doing “all that much” to burnish these brands’ image!

e-Books on the March

The Nook e-Reader, released by Barnes & Noble just in time for the holiday shopping season.
The Nook e-Reader, released by Barnes & Noble just in time for the holiday shopping season.
The e-book revolution continues apace. In the past week, Barnes & Noble announced the introduction of its own electronic book reader – the Nook – to compete against Amazon’s Kindle and Sony’s e-reader. Amazon promptly responded by lowering the price of the Kindle to match Barnes & Nobles’ Nook e-reader price. No doubt, both companies are looking to the holiday season, hoping their products will turn out to be among the few that are “stars” in what will otherwise be a season of tepid merchandise sales.

And now Google has gotten into the fray as well. It has announced new details on the pending launch of its e-bookstore, Google Editions. This is an online bookstore that will deliver digital books to any digital device such as e-readers, laptops and cellphones. Google plans to offer up to 600,000 book titles during the first half of 2010 alone, nearly matching the number of volumes that Barnes & Nobles will be offering with the Nook.

True to form, Google seems bent on taking an idea that is gained acceptance in the market – and then scrambling the deck to create a new set of game rules. In this case, it’s attempting an end-run around Amazon’s and Barnes & Nobles’ proprietary e-reader devices by offering the ability to download books to any digital device.

Google’s hope is that e-readers will eventually lose their luster once books are available for download to any device. But Forrester Research is estimating that ~3 million e-readers will be sold in 2009 — ~1 million higher than its earlier estimate. And some observers think that Google may be underestimating the importance and value of the proprietary e-readers; they note that Kindle users have been highly satisfied with the product and how it performs. (Besides, the audience for reading entire books on a cellphone device is probably pretty limited!)

In Google’s program, publishers will set the price of books, while Google will earn over half of the profits and share them with its retail partners. But there is an aspect of Google Editions that might turn out to be a significant “negative” for at least some users. Google is toying with the idea of including AdWords or AdSense advertising in its book offerings. Cramming a bunch of advertising surrounding the book contents could be a big turnoff. Even having blue-highlighted links in the text — while normal and expected when reading an online article such as this NonesNotes blog post – could be a major distraction when plowing through the contents of an entire book volume.

Regardless of how things play out, it’s clear that the ~$150 million e-book segment is going nowhere but up in the coming years, and it will be interesting to see how each of the key industry players ends up faring in the coming months. (And the story line gets even juicier with reports that Apple is also nosing around this market and may have something important to unveil before long.)