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Samsung C&T Corporation, the constructor of domestic “Raemian” brand apartments, topped this year’s National Customer Satisfaction Index, the Korea Productivity Center said.
Top hotels and general hospitals also have managed to satisfy their users despite the sluggish economy, but the agency said it was not yet time to be complacent, stressing that businesses will have to find a unique approach to seek out more customers in the future.
The NCSI is an economic indicator that measures consumer satisfaction across the country. It was developed by the KPC, Chosun Ilbo newspaper and the University of Michigan and is produced annually. The 2013 report is based on a survey of 76,757 participants who used the products or services of 287 companies in 65 industries over the year.
Highest NCSI figure yet
“In the inaugural year of 1998, Korea marked 58.8, which was 13.8 points behind the American Customer Satisfaction Index of 72.6 in the same year. But the gap has been narrowing over the years,” the KPC said.
Korea scored higher than the U.S. in public administration and government as well as the information and online business sectors. However, manufacturing of both durable and nondurable goods was said to be weaker than the U.S. counterparts by more than 8 points.
“It is true that the business sectors’ constant investment in product and customer service development has made some improvements. But the American economy is showing signs of recovery leading to an increase in personal consumption spending, which is widening the gap between the two countries once again,” the report noted.
The KPC said Korea’s NCSI is unlikely to see a dramatic rise in the future as aggressive investment has peaked out across many industries. “In order to retain the satisfaction index or to raise the index, the businesses will have to make an extra and original effort,” it noted.
Samsung C&T Corporation, the construction division of the country’s largest conglomerate, won 86 points, the highest among companies surveyed. Despite the sluggish construction economy, the branded apartments have managed to enhance customer satisfaction with improved design and facilitation, the KPC said.
Hotel and hospital businesses earned the highest scores by industry, at 80 and 77, respectively.
Lotte Hotel Seoul, whose first branch is situated in the heart of the capital city, ranked No. 2 among companies with 82 points. Other big hotels dominated the top ranks, with Grand Hyatt, Sheraton Grande Walkerhill, Westin Chosun and JW Marriott Hotel Seoul placing fifth, sixth, seventh and ninth, respectively.
The hotel industry was stagnant last year as the weaker yen discouraged Japanese tourists, whose number peaked at 3.5 million in 2011 but fell to less than 3 million at the end of 2013.
Nevertheless, the hotels’ efforts to renovate their facilities and bring in business and tourist-friendly products and services has led to high customer satisfaction, the report said.
“The so-called top-tier hotels have been holding various promotions to compete with the lower-class hotels armed with low prices. Such heated competition is expected to remain in the industry.”
The medical industry also ended strong, with Severance Hospital, run by Yonsei University, scoring 81 points to place third in the index.
Samsung Seoul Hospital, affiliated with Samsung Group and Sungkyunkwan University, ranked fourth with a score of 81, while Seoul St. Mary’s Hospital, Seoul Asan Medical Center and Seoul National University Hospital placed eighth, 13th and 16th, respectively.
“The hospital industry overall has successfully scored high customer satisfaction and customer retention rates,” the NCSI noted. “Medical facilities have been striving to improve their services by operating on Saturdays, establishing mobile websites and RFID-reading services at parking lots and, moreover, streamlining the payment system. Such efforts have reduced customers’ complains and discomfort, leading to their revisit or reuse of the service.”
Thanks to the diversification of media platforms, the so-called open markets and TV home shopping channels saw an increase of 2 points while conventional retailers such as department stores, large discount stores and petrol stations rose by 1 point.
TV home shopping, along with open-source online commerce sites inviting all buyers and sellers, scored 74 points and 73 points, respectively. These kinds of industries have emerged as a strong competitor of conventional retailers such as department stores and large discount stores, which marked 75 and 74 points, respectively. The popularity of the open market has increased over the past several years, and became the third-fastest-growing industry in the survey. It grew at 2.8 percent on-year in 2013.
“With the economy showing signs of recovery, consumer sentiment is improving and consumer satisfaction is rising. Consumers have become pragmatic about their shopping pattern, which resulted in the expansion of the online shopping industry,” the report noted.
By Bae Ji-sook (baejisook@heraldcorp.com)
Top hotels and general hospitals also have managed to satisfy their users despite the sluggish economy, but the agency said it was not yet time to be complacent, stressing that businesses will have to find a unique approach to seek out more customers in the future.
The NCSI is an economic indicator that measures consumer satisfaction across the country. It was developed by the KPC, Chosun Ilbo newspaper and the University of Michigan and is produced annually. The 2013 report is based on a survey of 76,757 participants who used the products or services of 287 companies in 65 industries over the year.
Highest NCSI figure yet
“In the inaugural year of 1998, Korea marked 58.8, which was 13.8 points behind the American Customer Satisfaction Index of 72.6 in the same year. But the gap has been narrowing over the years,” the KPC said.
Korea scored higher than the U.S. in public administration and government as well as the information and online business sectors. However, manufacturing of both durable and nondurable goods was said to be weaker than the U.S. counterparts by more than 8 points.
“It is true that the business sectors’ constant investment in product and customer service development has made some improvements. But the American economy is showing signs of recovery leading to an increase in personal consumption spending, which is widening the gap between the two countries once again,” the report noted.
The KPC said Korea’s NCSI is unlikely to see a dramatic rise in the future as aggressive investment has peaked out across many industries. “In order to retain the satisfaction index or to raise the index, the businesses will have to make an extra and original effort,” it noted.
Samsung C&T Corporation, the construction division of the country’s largest conglomerate, won 86 points, the highest among companies surveyed. Despite the sluggish construction economy, the branded apartments have managed to enhance customer satisfaction with improved design and facilitation, the KPC said.
Hotel and hospital businesses earned the highest scores by industry, at 80 and 77, respectively.
Lotte Hotel Seoul, whose first branch is situated in the heart of the capital city, ranked No. 2 among companies with 82 points. Other big hotels dominated the top ranks, with Grand Hyatt, Sheraton Grande Walkerhill, Westin Chosun and JW Marriott Hotel Seoul placing fifth, sixth, seventh and ninth, respectively.
The hotel industry was stagnant last year as the weaker yen discouraged Japanese tourists, whose number peaked at 3.5 million in 2011 but fell to less than 3 million at the end of 2013.
Nevertheless, the hotels’ efforts to renovate their facilities and bring in business and tourist-friendly products and services has led to high customer satisfaction, the report said.
“The so-called top-tier hotels have been holding various promotions to compete with the lower-class hotels armed with low prices. Such heated competition is expected to remain in the industry.”
The medical industry also ended strong, with Severance Hospital, run by Yonsei University, scoring 81 points to place third in the index.
Samsung Seoul Hospital, affiliated with Samsung Group and Sungkyunkwan University, ranked fourth with a score of 81, while Seoul St. Mary’s Hospital, Seoul Asan Medical Center and Seoul National University Hospital placed eighth, 13th and 16th, respectively.
“The hospital industry overall has successfully scored high customer satisfaction and customer retention rates,” the NCSI noted. “Medical facilities have been striving to improve their services by operating on Saturdays, establishing mobile websites and RFID-reading services at parking lots and, moreover, streamlining the payment system. Such efforts have reduced customers’ complains and discomfort, leading to their revisit or reuse of the service.”
Thanks to the diversification of media platforms, the so-called open markets and TV home shopping channels saw an increase of 2 points while conventional retailers such as department stores, large discount stores and petrol stations rose by 1 point.
TV home shopping, along with open-source online commerce sites inviting all buyers and sellers, scored 74 points and 73 points, respectively. These kinds of industries have emerged as a strong competitor of conventional retailers such as department stores and large discount stores, which marked 75 and 74 points, respectively. The popularity of the open market has increased over the past several years, and became the third-fastest-growing industry in the survey. It grew at 2.8 percent on-year in 2013.
“With the economy showing signs of recovery, consumer sentiment is improving and consumer satisfaction is rising. Consumers have become pragmatic about their shopping pattern, which resulted in the expansion of the online shopping industry,” the report noted.
By Bae Ji-sook (baejisook@heraldcorp.com)
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Articles by Korea Herald
