Reputation Roulette:When Bad is Good for Business

It was energetic, rebellious, catchy; a raw punk rock anthem and I couldn’t get enough of it. I was in my early teens in 1981, and Joan Jett’s ‘Bad Reputation’ was climbing the charts. Rolling Stone wrote: “Jett’s first solo album is a determined retelling of what sometimes seems like the truest rock story there is.”  

A bad reputation has been romanticised because it allows people to assert their autonomy and develop a unique personality. But is it useful in business or something to be avoided at all costs? Surprisingly, the answer: ‘It depends on your target market’. 

Hooters, the American restaurant chain of tight t-shirts, chicken wings, and beer, is frowned upon by feminist, community and religious organisations—not least labour rights activists who advocate for dignity in employment. If one attempted to open in Auckland, there would probably be protests. 

But Hooters customers love it because they are young men who, as the branding suggests, are full of testosterone and in rebellion against what they call ‘political correctness’. So much so that the company goes out of its way to ‘hire overtly sexy waitresses’ (according to branding specialist Marty Neumeier). 

In this instance, Hooters so-called bad reputation actually serves the company because the target market loves it. In the early 2000s, Kiwi brand ‘Hell Pizza’ dropped condoms into 170,000 Kiwi letterboxes to promote its Lust Pizza product. The New Zealand Advertising Standards Authority (ASA) ruled it unethical and indecent. 

I recall that Hell Pizza generated a lot of buzz and reinforced its edgy brand image. This, despite offending a vast proportion of the population. 

Polarising tactics are potentially useful for a few.  

However, if you’re in the business-to-business space or you rely on middle-class New Zealand for custom, then your reputation takes on a whole different hue. 

News that Air New Zealand’s reputation score is flat—unchanging—is interesting not because of the result (we weren’t given the numbers), but because Air New Zealand sees fit to measure reputation to begin with.  

One aerospace and airline industries analyst recently described Air New Zealand’s stock as a ‘sell’. 

“I rate Air New Zealand stock a sell due to its poor risk-reward profile and lack of compelling investment prospects until at least FY26,” he said. 

Whether that is true or not is beside the point. What is more to the point is that for big corporates like Air New Zealand, the reputation of a company and its CEO impacts everything from the future employability of the CEO himself or herself to sales, stock prices, customer loyalty, staff retention, and pricing power. 

For smaller businesses, the stakes are just as high, if not higher.  

Air New Zealand does have a high level of trust but, more importantly, a massive market. Most businesses do not. If word of mouth can drive business opportunities, you can bet your bottom dollar that word of mouth can also kill your business, particularly when your target market is not as big as the likes of Air New Zealand and, especially if you are in the business-to-business sector where everybody in your industry talks. 

That said, if you have an opinion that isn’t inflammatory, express it because it will help you stand out. There will be those that agree and those that do not. Anybody trying to be everything to everybody will end up nothing to nobody.  

Here’s the thing.  

Getting a bad reputation is easy, but designing, creating and protecting your reputation is much harder. Shock and awe are all well and fine and may even help you assert your uniqueness, but be careful because once a bad reputation sticks, it’s nearly impossible to shake, and not every market will embrace it the way you hope. 

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