Chapter 7 Sales Satisfaction Index

Sales Satisfaction Index

1. SSI Composition and its Influence SSI (Sales Satisfaction Index) evaluates customer satisfaction during the vehicle purchase process from new car buyers within one year of ownership. Evaluation is divided into three divisions of 'SALES OUTLET' from where vehicle was purchased, 'SALESPERSON' who helped vehicle purchase and 'DELIVERY PROCESS' of purchased vehicle. Evaluation scales by division are comprised of 12 items in 3 categories for 'SALES OUTLET' division, 8 items in 3 categories for 'SALESPERSON' division and 6 items in 2 categories for 'DELIVERY PROCESS' division. Each division has own overall evaluation at the end of it. At the very end, there is 10 points scale of Overall Sales Satisfaction that evaluate all 3 divisions comprehensively. SSI is calculated by reflecting item influence to response value of each item. The influence means the importance of each item in Overall Sales Satisfaction calculation. The influence of each item is derived through item analysis on Overall Sales Satisfaction items. Respondents were divided into the satisfied group (Top 3 box) and the dissatisfied group (Bottom 7 box) on the basis of response on Overall satisfaction item (10 pts. scale). Influences per item were derived from the difference in responses to 26 items shown between these two groups. Category influence and division influence were calculated by summing these item influences. In division influence, 'SALESPERSON' was the highest at 41%, followed by 'SALES OUTLET' (40%) and 'DELIVERY PROCESS' (19%). Compared to last year, ranking of division remains same, but the amount of influence has decreased in 'SALESPERSON' and 'DELIVERY PROCESS' while increased in 'SALES OUTLET' [Fig. 7-1]. Division satisfaction was derived by converting Overall satisfaction (10 pts. scale) of division into 100 points maximum score. SSI score is the sum of these divisions' satisfaction scores weighted by influence, then converted into 1,000 points maximum score.

Chapter 7 Sales Satisfaction Index

[Fig. 7-1] Sales Satisfaction Index Composition & its Influence

% Delivery process 19 (22)

Explanation Delivery

16 3

Approach Sales staff Sales outlet environment

Sales outlet 40 (33)

15 13 12

Salesperson 41 (45)

After sales service Explanation Politeness

22 13 6

) : I nfluence in 2011

2. SSI Scores by Maker The 2012 SSI industry average on 1,000 points scale was 782 points, maintaining similar level with last year (783 pts.), which had risen sharply by 20 points from stagnation in early 760 points range for 4 years since 2007 [Fig. 7-2]. [Fig. 7-2] Sales Satisfaction Index by Maker
(1,000 points)

GMK

HMC

KMC

RSM

SYM

Imports

850 819 803 790 796 781 763 758 744 782 781 774 761 792 RSM 790 GMK/ I mports 788 KMC 774 SYM 770 HMC

811 800 802 788 762 758 755 750 798 770 761 749 745

Better

750

0 700

761
2008 '08(6)

765
2009 '09(6)

763
2010 10(6)

783
2011 11(6)

782
2012 12(6)

I nd. Avg.
Year (Wave) MY (MI S)*

* MY: Model Year, MIS: Month In Service

By maker, Renault Samsung became the winner in SSI for 11 consecutive years with 792 points. But it has decreased by 27 points from the previous year, keeping a slight superiority in close competition away from the stand alone frame in the past. Ranked at 2nd and 3rd, GM Korea (790 pts.) and Kia (788 pts.) had mere 2 and 4

Chapter 7 Sales Satisfaction Index

points differences, respectively. GM Korea took 2nd place by climbing up one step with 9 points increase from the previous year. Kia had struggled at the very bottom until 2010, but it jumped up to 3rd after 2 years with 44 points increase to 788 points. Hyundai (770 pts.) had been in 2nd or 3rd places in recent years such as 2nd in 2009, 3rd in 2010 and 2nd in 2011. But it fell down to the lowest place by dropping 12 points from the previous year. While SSI scores of Renault Samsung and Hyundai in high ranking group have decreased, GM Korea in mid-ranking group and Kia & Ssangyong in low-ranking group have increased, displaying overall downgrading phenomenon. From 2009, there had been over 50 points gap between the 1st place and the lowest, but it has been reduced to 22 points in this year. Renault Samsung in the past had displayed unchallenged SSI score, but nowadays, it became unable to tell the difference. The poor performance of Renault Samsung was caused by overall problems in product, service, design and images. Slow sales from low product acceptability, shaky sales network and lacking countermeasure to sudden crisis resulted declining in SSI. Dropping of Hyundai to the very bottom is another unexpected result. In-depth analysis result revealed that the strike of labor union during the fieldwork period influenced it greatly. Strike in Hyundai gave anxiety to Hyundai customers and relief to other makers' customers. Even Kia, which had strike at the same time, increased the figure while Hyundai was declining. It became the lowest in rank because of the effect that pulled down own score and raised scores of other makers. SSI of Imports, which had retreated since 2008, scored same with last yeat at 790 points, which is higher than Industry average. But it has been stagnated at below 800 points range since 2009 after recording 802 points in 2008.

3. Satisfaction Scores by SSI Division SSI is composed of 3 divisions, 'SALESPERSON,' 'SALES OUTLET' and 'DELIVERY PROCESS'. The influences of each division were at 41%, at 40% and at 19%, respectively. The satisfaction of the 3 divisions by recent purchasers displayed 'DELIVERY PROCESS' as the highest again after last year at 80.3 points, followed by 'SALESPERSON' (78.5 pts.) and 'SALES OUTLET' (76.8 pts.). When compared with 2011 result (each at 80.6 points, 78.2 points and 77.0 pts., respectively), 'SALESPERSON' satisfaction has improved, while satisfactions for 'DELIVERY PROCESS' and 'SALES OUTLET' have decreased [Tab. 7-1]. Strengths and weaknesses of these 3 divisions were compared for each maker. 3

Chapter 7 Sales Satisfaction Index

Renault Samsung, which were winner in all 3 divisions last year, defended the top spots in 'SALESPERSON' and 'DELIVERY PROCESS'. In satisfaction score also, unlike recording over 80 points in all 3 divisions last year, it scored over 80 points only in 'DELIVERY PROCESS', while decreasing in all divisions from last year. 'SALESPERSON' has retreated to the level of 2010, and 'SALES OUTLET', which had maintained 80 points range since 2009, has been decreased to below 80 points. GM Korea, which became 2nd place with just 2 points gap, has improved satisfaction in 'SALESPERSON' and 'SALES OUTLET' from last year. Kia, which became 3rd by 2 points gap with GM Korea, has no top place in division satisfaction, but all 3 divisions have increased in satisfaction. Especially, 'DELIVERY PROCESS' broke through 80 points mark for the first time. On the contrary, 4th place Ssangyong improved satisfaction in all 3 divisions from last year, but had no division scored over 80 points. It recorded the lowest in rank in 'SALESPERSON' and 'DELIVERY PROCESS' without overcoming the poor performance in last year which had decreased in all 3 divisions from 2010. Hyundai scored the lowest in SSI with ranking and satisfaction score decreases in all 3 divisions from last year. Especially, it had the lowest satisfaction score in 'SALES OUTLET'. Imports relatively performed well in 'SALES OUTLET' and 'DELIVERY PROCESS', but poor in 'SALESPERSON' in division satisfaction. 'SALES OUTLET' division satisfaction was 79.9 points, which surpasses domestic 1st place GM Korea (78.9 pts.). It had lower score than domestic 1st place Renault Samsung (81.4 pts.) in 'DELIVERY PROCESS', but maintained the score in 80 points range, continuing from last year. 'SALESPERSON' division satisfaction has improved from last year, but still lower than Industry average. It is even lower than Ssangyong (77.8 pts.), which scored the lowest among domestic makers. [Tab. 7-1] SSI Division Satisfaction scores by Maker 2010-2012

Chapter 7 Sales Satisfaction Index

Year (Wave) SSI (1,000 points) 2012 2011 2010 2012 2011 2010 2012 2011 2010 2012 2011 2010

TOTAL 782 783 763 78.5 78.2 76.6 76.8 77.0 74.5 80.3 80.6 78.3

GMK 790 781 758 78.6 76.7 75.1 78.9 78.1 75.3 80.2 80.9 77.5

HMC 770 782 763 78.2 78.5 76.9 74.6 76.2 74.0 79.6 80.5 78.1

KMC 788 774 744 79.2 77.8 75.3 77.3 75.2 71.4 80.9 79.9 76.8

RSM 792 819 803 79.2 81.5 79.5 78.0 81.6 80.0 81.4 83.1 82.2

SYM 774 761 781 77.8 75.9 78.3 76.8 75.9 76.3 78.1 76.9 80.1

I mports 790 790 796 77.2 76.5 78.0 79.9 81.3 81.4 81.0 80.8 79.9

Average division satisfaction (100 points) Salesperson (Avg. in 100 points) Sales outlet (Avg. in 100 points) Delivery process (Avg. in 100 points)

/ : BIC/WIC (Best/Worst In Class) / : BIC/WIC (Best/Worst In Class) / / : BIC/WIC (Best/Worst In Class) among Domestics / : Better/Worse than domestic BIC/WIC (Best/Worst In Class)