What Do Bank of America Corp (BAC) & Research In Motion Ltd (BBRY) Have In Common?

I believe the first point worth mentioning is that innovation is everything. Research In Motion Ltd (NASDAQ:BBRY) failed to move quickly enough with a new smartphone, taking two years to develop its new operating system, and competitors left it in the dust. Dell Inc. (NASDAQ:DELL), as well, didn’t anticipate just how important weight and style were to consumers with regard to its laptops and has seen sales dip as Apple and Samsung products run circles around its own.

Secondly, having the right innovative idea is paramount to success. Some of these companies certainly tried to innovate, but they either chose a sensitive subject or ran with a bad idea for way too long. Bank of America Corp (NYSE:BAC), for instance, should have known that it was barking up the wrong tree when it tried to implement a debit card usage fee. J.C. Penney Company, Inc. (NYSE:JCP), on the other hand, should have figured out long before a year passed that its new sale-less strategy wasn’t working. Trying new things is great, but understanding whether they’re a touchy subject with consumers or if they’re just not working quickly is even better!

Public image is also important. American Eagle Outfitters (NYSE:AEO) rarely finds itself as a regular at the bottom of this list, so it has a good shot at repairing its product offerings and improving its online experience and pricing for consumers. On the other hand, Bank of America Corp (NYSE:BAC) is what you might call a regular among America’s most-hated companies, so it could be difficult to change that public perception — especially since few people really “like” their bank anyway. Investors like to buy what they know and put their money behind products they trust, which makes companies like Bank of America a tough sell.

The article 5 Companies With Terrible Brand Loyalty originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams owns shares of Bank of America Corp (NYSE:BAC) and Dell, but has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of Apple, Bank of America, and Citigroup Inc. (NYSE:C), and recommends Apple.

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