Consumer orientation strong in credit card/book markets and weak in handset/auto repair service markets

-Handset market displays the weakest consumer orientation for second consecutive year-

  In assessing consumer orientation of markets in 2015, consumer orientation was the strongest in the credit card and book markets while the weakest in the handset and auto repair service markets. Of note, the handset market displayed the weakest consumer orientation for the second consecutive year.

  The Korea Consumer Agency (www.kca.go.kr) assessed 50 product/service markets and calculated the Consumer Markets Performance Index (CMPI)* based on the assessment result.

  * CMPI: An indicator that shows the level of consumer orientation in individual markets based on a 100-point score. Higher scores mean stronger consumer orientation.

■ CMPI up 1.4 points vs. 2014

  In 2015, the overall CMPI rose 1.4 points year-on-year from 72.4 points to 73.8 points, and the overall evaluation item score (excluding safety and choice) rose year-on-year.

【2015 CMPI survey result】

■ Weakest consumer orientation in handset and auto repair service markets

(Product market) The handset market displayed the weakest level of consumer orientation among the product markets assessed with a score of 69.8 points. By evaluation item, scores were the lowest for “consumer issues and complaints” and “choice,” which implies that many consumers experienced problems or filed complaints and that product choices are limited. Of note, the handset market falls under the red zone (i.e., receiving the lowest scores in all categories for the second straight year), thus calling for efforts to analyze the market with a fine-tooth comb and develop measures to improve the level of consumer orientation.

(Service market) Among the service markets, the auto repair service market showed the weakest level of consumer orientation with a score of 71.1 points. By evaluation item, “consumer issues and complaints” received the lowest score.

■ Strongest consumer orientation in credit card and book markets

(Product market) As for the book market, assessment was conducted for the first time and displayed the strongest level of consumer orientation.

(Service market) Among the service markets, the credit card market showed the strongest level of consumer orientation. Of note, it was the only market to land in the green zone by receiving the highest scores in all six evaluation categories (comparability, credibility, consumer issues and companies, satisfaction, choice, and price).

■ 18.0% of markets assessed fall under the red zone; bottom-ranking markets similar to the previous year

  In examining the level of consumer orientation in the 50 markets, 18.0% (or 9 markets) fell under the red zone. While the figure improved compared to 2014 (51.4%), markets ranked in the bottom were nearly similar to the previous year.

  Among the product markets, handset/secondhand cars/school uniforms landed in the red zone for the second consecutive year, with a score of 69.8 points, 70.7 points, and 71.3 points, respectively.

  In the service market, auto repair service (71.1 points), hospital funeral arrangement service (71.3 points), telecom service (71.6 points), daycare centers (72.0 points), funeral service (72.1 points), and home repair & interior service (72.3 points) fell in the red zone.

  Meanwhile, consumers considered “price” and “safety” as the two most vital factors when purchasing products and services. In detail, compared to 2014, the secondhand care market was ranked the lowest in the “price” category and the daycare center market was ranked at the bottom in the “safety” category. As can be seen, efforts need to be made for improvement so as to enhance the level of consumer orientation.

  In line with economic globalization (such as increasing free trade agreements between countries) and rapid IT development (such as widening penetration of social networking services), consumers are becoming more influential in markets and becoming key economic players. Against this backdrop, markets as well as businesses need to become more consumer-oriented in order to secure competitiveness.

  Based on the consumer market assessment results, the KCA plans on holding a consumer policy research seminar on July 14, 2015 at its headquarters, in order to analyze and exchange views on factors that can help markets become more consumer-friendly and consumer-oriented.

[Appendix] 2015 Consumer Markets Performance Index in Korea_Executive Summary