DATE : 12/10/2014 LOCATION : Novotel Ambassador Gangnam, Seoul, Korea
On December 10, 2014, IMO (International Marketing Organization) hosted the '2014 Winter Global Marketing Conference' in cooperation with KMA (Korea Marketing Association) at the Novotel Ambassador Gangnam in Seoul, Korea. IMO officially announced the 2014 KPEI (Korea Purchasing Ease Index) and presented awards to companies rated first place in their respective industrial categories. The award ceremony was followed by seminars "Uneasement - Managing Consumer Unease" by Kim Dae Gwon (Head of KMA CSV Research Institute), "2015 Marketing: Task and Trend" by Lee Nam Sik (President of Kaywon University of Art & Design), and "Philosophical Approach to Unease Management" by Jeon In Su (President of CSV Management Society).
Head of KMA CSVM Research Institute Kim Dae Gwon explained during his seminar that "As the economies of Korea, Japan, and other Asian nations continue to struggle in the aftermath of the Global Financial Crisis, shifting focus toward managing sources of unease that directly affect consumers' purchasing activity opens up new opportunities for growth and provides a solid foundation for future progress."
In the wake of recent tragic events in Korea such as the sinking of the Sewol ferry, the matter of safety is becoming an increasingly crucial issue in the consumer's eyes. The Purchasing Ease Index was developed in 2013 through a joint effort by IMO and KMA in order to help create a landscape in which consumers can purchase products and services without any souces of unease and to encourage companies to prioritize consumer safety and ease. The 2014 KPEI measures how consumers view each product from various evaluative aspects as well as the overall level of ease with which consumers purchase a product. The data was collected through offline paper questionnaires with responses by consumers who have used respective products/services.
The 2014 KPEI (Korea Purchase Ease Index) recognized Yuhan Kimberly for 'Huggies' and 'Good Feeling (Joeun Neukim)' in the diaper and tampon categories respectively, Sempio Foods for 'Sempio' in the soybean paste and soy sauce categories, Pulmuone Health & Living for 'BabyMeal' in the baby food category, Lotte Foods for 'Pasteur' in the powdered milk category, Otis Elevator Company in the elevator category, and Coway for 'LooLoo' and 'Coway' in the bidet and water dispenser categories respectively, among others for a total of 69 industrial categories for which the highest rated company received the official KPEI certification.
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2014 KPEI Implications
1) Unease present in every industrial category Overall PEI of the Korean industry is 77.6, a relatively low figure. Customers often purchase products or services despite sources of unease, presumably due to lack of better alternatives.
2) Magnification of unease in the public sector Frequent incidents in categories closely connected with everyday life such as the military and the subway are resulting in greater unease for the general public. An active approach to improving those categories is imperative.
3) Products' quality reliability a positive highlight Continuous efforts to improve product quality in both consumables and durable goods categories are leaving a positive impact in consumer purchasing ease.
