Clueless clerks roaming the aisles at Home Depot. Flight attendants in need
of "anger management" counseling. Telemarketers calling promptly at
dinner time to sell long-distance service.
These are just some of the consumer gripes that proved costly to companies in
the third annual corporate reputation survey conducted by Harris Interactive
Inc., an online market-research firm. People are fed up with lousy customer
service, and they let it show in their ratings of many of the world's best-known
companies.
Exemplary service gave a boost to companies such as FedEx Corp., United
Parcel Service Inc., Hewlett-Packard
Co. and Target
Corp. "When a company provides great service, its reputation benefits from
a stronger emotional connection with its customers, as well as from increased
confidence that it will stand behind its products," said Joy Sever, a
senior vice president at Harris, which developed the study with the Reputation
Institute, a New York research group.
In the first phase of the survey, members of the public were asked to
nominate companies they viewed as having the best and worst reputations. The 60
most frequent nominations then received detailed ratings and rankings from
21,630 respondents to an online survey conducted in October. Enron Corp., whose reputation has collapsed along with its finances, wasn't much in
the news during the spring and summer of 2001, when the list of companies for
the most recent survey was being compiled.
Emotional appeal is the primary driving force behind corporate reputation,
the results show. That would help explain why Johnson
& Johnson has such remarkable staying power in the No. 1 spot, hanging
on for three years running. Johnson & Johnson has cultivated a powerful
image as "the caring company," associated with products for cuddly
babies. Financial performance, products and services, vision and leadership,
social responsibility and workplace environment also figure into the scores.
Quality of products and services was the next most important factor -- and
that's where many companies were found wanting. Paul Houck, a 42-year-old
grocery clerk and student in Lake George, N.Y., can't forget the burgerless Big
Mac he got from the drive-through window at his local McDonald's. "It's
gotten so bad that we have to double check the bags before leaving the
restaurant," he says.
People listed McDonald's
Corp. as the most recognizable of all corporate logos and one of the most
socially responsible companies. But experiences like Mr. Houck's knocked the
company down to 33rd place from 24th a year earlier. Well aware of service
problems, McDonald's says it has "an aggressive action plan under
way," including new regional vice presidents for quality service and
cleanliness, a national toll-free number for consumer complaints and
"mystery shoppers" to evaluate employees' performance.
Home
Depot Inc. dropped to 19th place in 2001 from 4th in 2000. Many people said
they can't find products they need in the chain's cavernous stores -- and many
clerks seem to be just as lost. One respondent recalls a trip to the store for
flooring supplies: "It took three calls to get someone to help us. Another
time we were purchasing fencing material and we had to load all of the material
ourselves. It was almost impossible to get an employee to help."

Home Depot says it is on the case. Salespeople are now unpacking merchandise
late at night so they can help customers during prime shopping hours. More
employees are working on the selling floor on weekends.
Airlines and telecommunications companies took beatings for their customer
service. People especially resent the phone companies' persistent telemarketing.
As for airlines, the public generally finds the flying experience unfriendly and
uncomfortable. "It used to be glamorous to fly," one respondent said.
"Now, we are herded on board, told to sit down, shut up and hang on."
Air carriers were scolded for being lax on security and for laying off so many
people so soon after Sept. 11.
Some companies were hurt by management turmoil and financial troubles. Of the
60 companies in the 2001 survey, DaimlerChrysler AG and Lucent
Technologies Inc. registered the biggest drops in reputation scores because
of low ratings of financial performance and of vision and leadership.
Many respondents believe the merger of Chrysler and Daimler-Benz was a
mistake. "The Mercedes reputation hasn't rubbed off on Chrysler, and I
think the merger has hurt the Mercedes name a bit," 55-year-old Barry
Patterson, of Las Cruces, N.M., says in an interview. "They need to try to
transfer Mercedes engineering to the domestic cars. The quality never seems to
quite be there in the Chrysler cars I have rented."
"It has been an enormously challenging year for us, and this year's
results don't reflect the underlying strength of DaimlerChrysler," says Han
Tjan, director of corporate communications. "We will have to work harder to
get public perceptions changed." In February 2001, the company announced a
turnaround plan including 26,000 layoffs and other cost-cutting measures.
Lucent, too, is restructuring, but many respondents questioned its future
strategy. "No clear direction or objective for the company" was a
typical comment. A spokesman responds, "We'll bounce back based on the
merits of our products, the innovations in our labs and the success of our
restructuring."
Top ratings for financial performance and management's vision and leadership
propelled Microsoft
Corp. into second place. Respondents praised Microsoft for innovation, but some
were critical of its dominance in the software market, calling it "a
punk" and "monopolistic."
Coca-Cola Co. made a striking comeback, placing third in 2001 up from 16th in 2000. Coke
ranked first when people named the company they trusted most to do the right
thing and the stock they would definitely buy. "The public appears to have
forgiven, or forgotten, the company's mistakes," says Harris Interactive's
Ms. Sever. "Only companies with historically strong reputations have the
ability to rebound this quickly."