Most Hated Companies

Business Insider has posted a list of the 19 most hated companies, based on the American Customer Satisfaction Index. Large banks, airlines, and power and telecom companies seem to be most hated according to thousands of customer satisfaction surveys. Weighing in at number 6, US Airways received 61/100 points from customers.

Discussion Starters:

• Does this list surprise you? Why or why not? Does the list reflect your own experience with these companies?
• According to one analyst at the American Consumer Satisfaction Index, large banks, airlines, and communication firms represent "not terribly competitive industries, as the switching barriers for most of them are quite high... In other industries, like the food or clothing sector, the competition is huge. They bend over backwards to make customers happy, because they have to." How does this rationale explain the customer service failures? Does it excuse them?

Santa Makes a Summer Appearance in Pepsi Commercial

Pepsi has launched a new commercial featuring Santa Clause at a summer party. In a direct hit to Coke, which Pepsi now trails in sales (including Diet Coke), the ad shows Santa rejecting bottles of Coca-Cola. Critics say that Pepsi had lost focus on its flagship product; does this commercial signal a new direction?

 Discussion Starters:

• Had you associated Santa Clause with Coke? Does your knowledge or lack of knowledge change your perception of the commercial?
• How is Pepsi using logos, pathos, and ethos in this commercial to persuade viewers?

Nike "Get High" T-Shirts Anger Boston Mayor

Mayor of Boston Thomas Menino doesn't like Nike's new T-shirts. He believes that messages such as "Get High" and "Dope" promote drug use. In a letter to the general manager of Niketown Boston, Menino urges the company to remove the T-shirts.

Nike has responded to my tweet about the situation:

Discussion Starters:

• What is your opinion of Nike's new T-shirts: dangerous or just clever marketing?
• Analyze the mayor's letter. What principles of persuasion does he use? Do you consider this an effective letter? Why or why not?
• How do you think Nike should respond to the mayor's letter? What are the consequences of the company removing -- or keeping -- the T-shirts?
• How do you assess Nike's tweets to BizCom in the News?

ABA Responds to Critics of High Calorie Sports Drinks

A new study found negative effects of high calorie sports drinks on children. Study authors say that children don't need the calories, caffeine, and other stimulants. This shouldn't come as a big surprise but has warranted this response from the American Beverage Association.

This isn't the first time that a study has put the American Beverage Association on the defense. A study on diet soda was highly criticized by the ABA on Good Morning America:

Source: Putting Health Before Headlines from American Beverage Association on Vimeo.

Discussion Starters:

• Considering the recent study about high calorie sports drinks, in what ways does the ABA's response meet criteria for persuasive communication? In what ways was their response effective and ineffective?
• Looking at the video above, how do you assess the ABA's approach about the diet soda controversy? Do you buy their argument and criticism of the study?

Assignment Idea:

• On the ABA's website, you'll find several articles defending beverage makers and explaining new initiatives that support health, for example, their "Clear on Calories" section.  What parts of the ABA's messages do you find most convincing?  Least?

Nokia CEO to Staff: We Are "Standing on a 'Burning Platform'"

The Story

In a message to employees, Nokia CEO Stephen Elop compares the company's situation to that of a man on an oil platform in the North Sea. The man, like Nokia, needs to take the plunge into icy water in order to survive. Elop may be preparing employees for major changes expected to be announced on Friday. The speech (which became an intranet post) presents a grim picture of Nokia's position in the smartphone market: "We fell behind, we missed big trends, and we lost time." While the speech is fairly negative, Elop also encourages employees: "But, I believe that together, we can face the challenges ahead of us. Together, we can choose to define our future."

Discussion Starters

• Read Elop's message to employees. If you were a Nokia employee, how do you think you would react to this? 
• What parts of Elop's message most inspired you? Did any parts depress you or cause you to doubt the company's future?

Assignment Ideas

• Analyze Elop's speech for persuasive techniques. How does Elop use principles discussed in Chapter 7? Write a memo to your instructor to illustrate your analysis.
• Try to write another version of Elop's speech. What analogy could you use that might work as well or better?

Where's the Beef, Taco Bell?

The Story

Taco Bell is under fire for misrepresenting its taco meat.  A class action lawsuit claims that the company is falsely advertising their beef, which does not meet USDA standards and contains too many non-meat ingredients in their "meat mixture": "water, wheat oats, soy lecithin, maltodrextrin, anti-dusting agent and modified corn starch."

In response, the company says that their meat is FDA compliant and 88% beef, rather than the 35% that the suit claims. 

Discussion Starter

• In his video message, how does Greg Creed use logical arguments, emotional appeals, and credibility described in Chapter 7?

Assignment Ideas

• Read the company's written statement in response to the lawsuit.  In small groups, discuss what you think is most and least effective about this message.
• Write a memo to Greg Creed assessing Taco Bell's response to the lawsuit.  Consider all company messages as well as the timing of each.  Include your advice for handling bad news in the future.

Bob Dudley, New BP CEO: Good Speech or "Worst Person"?

The Story

Bob Dudley, British Petroleum's new CEO (the company's first American CEO), addressed business leaders in London in an attempt to rebuild his company's image.  This was Dudley's first public speech since taking the role following the oil spill in the Gulf of Mexico.
 

Discussion Starters

• What persuasion strategies does Bob Dudley use in his speech?
• What do you think are the most successful parts of this speech? Which are the most convincing?  Which are the least convincing? 

Assignment Ideas

• Identify examples of logos, pathos, and ethos in Bob Dudley's speech.  Which strategy does he use most?
• Bob Dudley earned a spot on Keith Olbermann's "Worst Person in the World" list (fast forward to 1:30). On his political commentary program, Olbermann criticized Dudley particularly for the last paragraph in his speech, where he noted the intense "political and media attention" generated by the oil spill. Read the "Conclusion" of Dudley's speech, and draw your own conclusion. Is Olbermann's criticism justified?  Does Dudley have a point?  Imagine that BP has a blog for public comments.  Write your assessment of Dudley's comments.  Be sure to justify your perspective.

Egg Recall Scares Some, Brings Opportunities to Others

The Story

Millions of eggs have been recalled since a salmonella outbreak sickened over 1,000 people.  The egg industry is on the defensive, but some local farmers have seen increased interest in their eggs.  Both groups can use communication to their advantage.

Read more.

Discussion Starters

• What is the best approach for the industry to repair its image and rebuild consumer trust?
• What are the communication objectives of the egg industry during the recall?
• How should egg producers communicate their messages? What communication medium would be best in this situation?
• How can independent farmers capitalize on the situation to promote locally produced eggs? What could be some of their key messages?

Asssignment Ideas

• In small groups, discuss a press release about one of the recalls.  What principles of persuasion and communicating bad news are used in the announcement?
• Imagine that you're the owner of Morning Fresh Farms, a local egg producer in Colorado.  Write a letter to consumers promoting your eggs.  Use the opportunity of current egg recalls to educate the public about your products.  Assume that this letter will be published as a full-page ad in the local newspaper. Read this article for background information.
• In small groups, review the website http://www.eggsafety.org/. What are the group's most convincing and least convincing arguments?  Why do these arguments work well or fail to work?
    

NYT Article: In Serious Company Crisis, "P.R. May Only 'Get People to Hate Them Less.'"

The Story

The New York Times reported quite the story about the recent P.R. failings of BP, Toyota, and Goldman Sachs, citing both missteps and what sounds like hopelessness.  Some crises, the article concludes, may be beyond repair through communication. This paints a dim picture of corporations' attempts to recapture trust and rebuild a brand. 

 

Discussion Starters

• Do you agree with the conclusions drawn in the article? Why or why not?
• If these companies-BP, Toyota, and Goldman-hadn't made mistakes in their communication, would public perception be different?
• Thinking as a customer or client of each business, what, if anything could each company have done differently to win you over?
• What principles of persuasion (from Chapter 7) did each company use? Which could it have used more or less?

Assignment Ideas

• As a group, watch viewers' perceptions of CEO Akio Toyoda, as he discusses Toyota's issues. Why do you think the viewers gave him mixed reviews, with "skepticism" their most common reaction? At what points did viewers' ratings decrease and increase? What do you think caused these changes?
• After reading the NY Times article, choose one of the three companies and do your own research about how it handled the crisis. Write a report to the CEO with your analysis and recommendations for communicating during a crisis in the future.
• Find a speech or commercial from one of these companies about its crisis. You'll find several on MediaCurves.com, on YouTube, and on each company's website. Analyze the video in terms of persuasion techniques discussed in Chapter 7. Write a memo summarizing your analysis.

BP Cleans Up (Its Image)

The Story

After the oil spill disaster in the Gulf of Mexico, British Petroleum tried to repair its reputation, partly with a TV commercial.  In this video, you'll see how viewers responded to the message.

 
  

Watch the full video at the source: http://mediacurves.com/Politics/BP%20Commercial/. 

Discussion Starters

• What principles of persuasive communication (discussed in Chapter 12 ) does BP use in this message?
• In your opinion, is this an effective message? Why or why not?
• Why do you think the viewers reacted positively overall?
• At what points in the video do you see a significant change in viewer opinion? Why do you think people change their perception at these points?  
   

Assignment Ideas

• Write a memo to BP's VP, Advertising, with your analysis of the commercial, based on persuasive communication principles.  What works in the commercial?  What doesn't?
• Draft a script for a new commercial.  How would you communicate BP's message about the oil spill and their commitment going forward?
• Research other PR missteps by BP during this crisis situation.  As a communication consultant, write a memo to Tony Hayward with your advice: following the spill, what could he and the rest of the organization have done differently to maintain the company's reputation?