|2019 consumer orientation level of the Korean service market scored 77.6 points in consumer evaluation, which slightly decreased compared to 2017.|
2019 consumer orientation level of the Korean service market scored 77.6 points in consumer evaluation, which slightly decreased compared to 2017.
- The highest-rated market was “medical service in general hospitals and clinics,” and the lowest-rated market was “auto repair service.” -
The ‘2019 Consumer Market Evaluation Indicator*’ produced by the Korea Consumer Agency (President Lee Hee-sook), which evaluates the consumer-orientation level of the Korean market, showed that the total score of 31 major Korean service markets by consumers’ evaluation was 77.6 points. By market, “medical service in general hospitals and clinics” earned the highest evaluation score (79.9 points), and “auto repair service” gained the lowest (76.1 points).
* The Consumer Market Evaluation Indicator has been produced since 2014, when the Indicator was announced for the first time (produced in 2014, 2015, 2017, and 2019).
The score (77.6 points) slightly decreased (-0.2 points) compared to 2017, but it showed that the consumer-orientation level of the Korean service market remained above average without major changes in the past two years.
▶ Consumer Market Evaluation Indicator: It measures how consumer-orientated the markets of products and services are and consists of eight evaluation items. Based on the 100-point scale, a higher score means higher consumer orientation of the market. In particular, the weighted average scores of the following five common evaluation items (①~⑤) are called the Korea Consumer Markets Performance Index (hereinafter KCMPI).
※ The evaluation conducted in 2019 is confined to service markets. Product markets will be evaluated in 2020.
▶ Common evaluation items: ① Choice diversity ② Comparability ③ Trust ④ Expected
satisfaction ⑤ Consumer complaints and damages
▶ Independent evaluation items: ⑥ Price ⑦ Safety ⑧ Switchability
□ Among the evaluation items, ‘price’ and ‘switchability’ improved significantly.
By evaluation item, ‘price (70.0→72.4 points)’ and ’switchability (70.8→76.2 points)’ improved significantly compared to 2017, but ‘safety’ fell sharply (-5.3%). This means that consumers are more satisfied with the price compared to the value of the services they receive (price), and that it is easier to change businesses or products in continuous transactions, resulting in greater consumer choice (switchability), while increasing ‘anxiety’ about consumer safety (safety).
Meanwhile, the highest-rated market in ‘price’ was “medical service in general hospitals and clinics” and the lowest-rated market in ‘safety’ was “taxi service.”
【 2019 Consumer Market Evaluation Indicator - Service Market 】
Note: The Korea Consumer Markets Performance Index is the weighted average scores of the five common evaluation items (‘choice diversity,’ ‘comparability,’ ‘trust,’ ‘expected satisfaction,’ and ‘consumer complaints and damages’).
□ By service market, “medical service in general hospitals and clinics” and “home repair and interior” were rated high in consumer evaluation.
Out of 31 service markets, “medical service in general hospitals and clinics” was rated high (79.9 points) in ‘choice diversity,’ ‘trust,’ and ‘expected satisfaction.’ In particular, consumers aged 60 and over gave the highest score (81.4 points).
The “home repair and interior” market has been evaluated as a remarkably improved market this year, and its ‘comparability’ appears to have improved significantly with the recent access to various information through interior apps, etc. However, in ‘consumer complaints and damages,’ the rate of experiencing damage increased markedly to 7.9%, indicating that the sector is still in urgent need of improvement.
□ “Auto repair service” is improving, but still at the lowest level in consumer evaluation.
The “auto repair service” recorded the lowest level (76.1 points) in the entire service market in 2019, following 2015 and 2017, but the evaluation score has improved slightly. However, as the evaluation of ‘comparability’ among the evaluation items has continued to fall, it seems necessary to prepare countermeasures in this sector.
【 Auto Repair Service KCMPI in 2015-2019 】
□ Red markets accounted for 9.7% of the entire service market, and decrease every year.
As a result of the analysis of ‘Consumer Orientation Traffic Light,’ which categories the consumer orientation of each market into ‘Red Market (in alert),’ ‘Yellow Market (insufficient)’ and ‘Green Market (good)’ according to the urgent need of relative improvement in terms of consumer orientation of the market, three (9.7%) out of 31 service markets appeared to be red markets (in alert) that urgently need improvement in consumer orientation. And this is a 1.4%p down compared to 2017. On the other hand, green markets (good) accounted for 12.9% of the entire service market, up 1.8%p compared to 2017.
“Auto repair service” is the only market that appeared as a red market for three consecutive times, and “teaching institutes for adults” fell from a yellow market to a red market in 2019. “Performance viewing service,” which was evaluated for the first time in 2019, appeared as a red market.
On the other hand, “home repair and interior”appeared as a red market or a yellow market for three consecutive times, but this year it became a green market.
The KCA plans to provide relevant corporations with the survey result so that it can be used in improving the consumer-orientation levels of the markets, and furthermore, support in establishing the government’s efficient policies by working in close cooperation with the Consumer Policy Committee*.
* The Consumer Policy Committee shall be established in the Korea Fair Trade Commission in order to deliberate and decide a fundamental policy concerning the enhancement of consumers’ rights and interests and the improvement of consumers’ lives (Article 23 of the Framework Act on Consumers).
【 Survey Overview 】
o (Subject to be surveyed) Consumers aged 20 and over who purchased products or services from or used 31 service markets* during the first half of the year (from January 1, 2019 to June 30, 2019)
o (Sample size) Total of 31,000 people (1,000 for each market)
o (Sample extraction) Method of extracting population ratio by gender, age, and region
o (Survey period) July 24, 2019 ~ August 31
o (Survey method) Door-to-door survey
o (Confidence) ±0.56%p sampling error at 95% confidence level (±3.10%p sampling error for individual markets)
o (Analysis overview) Perfect score of 100 points; KCMPI applies the weighted average of each item
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