Annual consumer research(ACR) on the korean lifestyle in 2009

Annual
Consumer
Research in 2009
on the Korean Lifestyle

XenoOne
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Annual Consumer Research on the Korean Lifestyle in 2009

Special
2009 Annual Consumer
Research
Looking back Korean
Consumers, 2009
By Haeyeon Lee / Cheil Worldwide Communication Sciences Institute,
haeyeon22.lee@cheil.com

The beginning of the year was not bright. People were relating to child raising methods, amount of private
concerned about the recession that started in spending for individual items, leisure time, overseas
2008, and the death of two ex-presidents gave people travel experience, debt status, influence of debt on
a sense of deep loss. Plus, the new flu pandemic made spending, and job loss experience. Second, in the
people often check their body temperature and wash purchase behavior section, newly added questions are
their hands even in places where there was no water. asked relating to the use of netbooks, DSLR cameras,
Then, what were the lifestyles of Koreans this year of air purifiers, water purifiers, water softeners, bidets,
2009? and garbage disposals.
Based on the 2009 ACR survey, a two volume set of
reports were released. This article introduces the
Figure 1. ACR Research Contents
volume titled “Research on the 2009 Lifestyle of Korean
Lifestyle Purchase Behavior Consumers”. This report consists of Koreans’ interests,
Interests, values, perspective on society, perspective on family, Groceries, confectionary, drinks, coffee, alcohols, dining out, values, and lifestyles which are examined by sector,
perspective on retirement, perspectives on international clothes, shoes, cosmetics, bath products, malls, leisure,
relations, perspective on education , perspective on apartment, cars, transportation train, finance, medicine, “Analysis per Subject”, and also presents
occupation, perspective on corporate social responsibility, education, appliances, wellbeing appliances, personal
perspective on environment, health, diet, housing, fashion & appliances, computer, communication service characteristics of lifestyles by age levels from 10 to 50
beauty, finance & investment, shopping, brand, ad,
hobby & interest , media & information, and years old, “Analysis per Generation”. In particular, this
favorite entertainers
year’s report includes a comparative analysis on gender
Media Contact Heart
Media contact status by day/channel/time Ad Incite image data bank helps to
in the “Analysis per Subject” and the “Analysis per
contact status by media and ad attitude Outdoor ad implement Brand Concept or Brand
and PR ad contact status New media (internet, mobile, and
Generation”. This helps to utilize the data of the target
Image into actual images by target.
IPTV) using rate and ad attitude lifestyle immediately in relation to age and gender.
Now, let’s take a close look at the major characteristics
of Korean consumers’ lifestyles and the characteristics
of the generations.
The world changes quickly. People’s lifestyles and
values continue to change as the products they use
often come and go. Cheil Worldwide has annually In 2009, Korea managed well even in
conducted a consumer research to keep informed about the bad economy
the ever changing lifestyles of consumers. The annual
consumer research (ACR) consists of Lifestyle, Purchase Korea went through many difficulties in 2009: the
behavior, Media contact, and Heart or taking a picture ongoing recession, a new flu pandemic, and the death
survey (see Figure 1). In the ACR, Koreans’ values and of leaders. Looking at the priority of interests given by
purchase behaviors are broadly examined from the individuals in our survey begins to show a change due
survey of 3,500 people who live in five large cities in to the events happening domestically as well as
the nation. abroad. First, the unemployment/employment crisis
ACR’s annual research contents vary little by little topped 46% in the priority of interests in the social
because people’s lifestyles and values continue to issues (see Figure 2). Job sharing and youth internships
change. In 2009 the ACR survey was enhanced with were introduced to lower the youth unemployment rate
more questions on lifestyles and new products and it which reflects the serious unemployment due to the
provides better results directly related to the recession. In addition to these, people had high interest
information given by the respondents. First, in the in price increases, overcoming the recession, and the
lifestyle section, newly added questions are asked real estate problem. Educational issues also


Special Looking back Korean Consumers, 2009
2009 Annual Consumer
Research

1 Unemployment, job problem 46% 1 Health, wellbeing 45%
2 Cost of living, price increases 36% 2 Home, family 34%
3 Education 34% 3 Old age issues 29%
4 Overcoming recession, reviving economy 31% 4 Children's education 24%
5 Housing, land, real estate 22% 5 Economy, investment 23%
6 Politics 22% 6 Friends, relationships 20%
7 Labor, wages 20% 7 Jobs, re-employment, changing jobs 17%
8 Tax, tax system 13% 8 Work, deal, business 16%
9 Crime, public security 13% 9 Study, self-development 16%
10 Economic index change: stock, exchange rate, interest rate 12% 10 Fitness, diet 15%
11 Social welfare, social contribution 9% 11 Fashion 14%
12 Pollution, environmental issues 9% 12 Hobbies, leisure activities 12%
13 South & North issues: reunification 7% 13 Relationships, marriage 10%
14 Consumer protection 6% 14 Housing environment (moving, remodeling) 8%

Figure 2. Priority of interests in social issues Figure 3. Priority of personal interests

continuously rank high. Meanwhile, personal interests success is more important than social status. In a merit
show that a recession makes interest in the family oriented society the trend that emphasizes education is
increase as the conventional wisdom says (see Figure increasing since people do not want to fall behind other
3). People also showed increased interest in health and competition even with private tutoring. People think
wellbeing, family, and child education, while they that our society’s educational zeal is a serious fault, but
showed little interest in the personal appearance, at the same time they still think that a good education
fashion, and hobby sectors. is essential for success.
The changed lifestyles of Korean consumers in Greater expectation and awareness in social
response to various crises are narrowed down into six responsibility from government and corporations
categories: materialism, emphasis on education, continue to increase. People expect governments and
emphasis on social responsibility, emphasis on corporations to play an active role in bridging the
substance, independence oriented, and safety oriented income gap between classes and protecting the
(see Figure 4). Materialistic values became more environment. Meanwhile, those surveyed showed a
important due to high prices and the severe passive attitude toward changing society by their own
employment crisis. Examining the survey results, we personal involvement. They showed a more frugal
can see that money is important in life and materialistic attitude through job activities and consumption. They
usually buy more practical products than fashion,
actively using their coupons and mileage credits. In
Figure 4. Promotion examples for CMA new product launch
addition, they are open to changing jobs and
Building Internal Stability in 2009 amidst Economic Crisis
considering specialties in careers rather than a lifetime
“Korea, a Nation of Domestic Stability amid
Challenges from Abroad” commitment to a single company.
In family life, parents and children want to be more
Materialism Security
Reality is harsh, and focus is on Seeking safer investments, safer independent in their relationships. Old parents do not
money Salary is the measure of food, safer life.
one's competence
want to be dependent, but rather they want to pursue a
new job or experience independently. In addition, a
Emphasis on education Financial Independence safety oriented lifestyle was more conspicuous in this
Education is what earns trust and Double income households
competence in Korean society. became more common. survey than in any other year. Concerns over food
Private tutoring and education Financial independence from their
started early at a young age are
considered essential
children becomes important after
retiring.
safety led to a high interest in organic premium food
and people preferred home cooking to dining out. As for
investment, safety is more important than profitability
Emphasis on Pragmatism
social responsibility Attend to “smart consumption” in investment (see Figure 5).
Realization of a significant using coupons and mileage
poverty gap made people bitter programs. Realize the importance
whilst demand more welfare of becoming an “expert” at work.
benefits and corporate social
responsibility programs.


Annual Consumer Research on
the Korean Lifestyle in 2009

Research Overview
Research Framework
Respondents
Research Contents
Methodology
How to Read the Report

Annual Consumer Research on the Korean Lifestyle in 2009 ©2010 XenoOne Co., Ltd. ©All Rights Reserved.

Research Framework
Research Framework

Research objectives
• Examine the characteristics of Korean consumers, ages 13-59 to enhance future marketing strategies
• Identify values and lifestyles of Korean consumers by generations and regions
• Investigate purchase behaviors and media usage behaviors to develop marketing and communication strategies

Research target
• Male & female, ages from 13 to 59

Research areas
• Five major cities in Korea (Seoul, Busan, Daegu, Gwangju and Daejeon)

Number of samples
• Total 3,500 people

Data collection method
• Face-to-face interview, Self-Completion diary (picture-taking requested)

Random sampling method
• Quota sampling based on gender, age, region, and occupation of the total population

Research Contents
• Demographics
• Values and lifestyles
• Product purchase and usage behaviors
• Media consumption (TV, Radio, Newspaper, Magazine, Internet, etc.)


Respondents
Respondents

Distribution by generation

763 842
people people 620
people
428 425 422
people people people

13-18 19-24 25-29 30-39 40-49 50-59

• Quota sampling based on gender, age, region, and occupation of the total population
• Population's gender and age data based on the 2009 data from KOSTAT (i.e., a central
government office for statistics in Korea)
• Population's occupational data from the 2008 annual population report on “economically
active” people

Distribution by region

Seoul
1,200 people

Daegu
600 people

Daejeon
550 people

Busan
Gwangju 600 people
550 people


Research Contents
Lifestyle Categories
Interests

Personal Social

Perspective on Value

Personal Values Society Family Retirement International
Relations

Education Occupation Corporate Social Environment
Responsibility

Lifestyle

Health Diet Housing Fashion & Beauty Economy & Investment

Shopping Brand Advertising Hobby & Interest Media & Information


Research Contents
Product Usage and
Purchasing Behaviors

Product Categories

Groceries Bakery Beverage Coffee Alcoholic Beverage Dining Out

Clothes Shoes Cosmetics Toiletry Shopping Malls Leisure

Apartment Automobile Transportation & Rail Finance Pharmaceutical Education

Consumer Well-being Personal Computer Communication Corporation
Electronics Electronics Electronics Service


Methodology
HEART, Lifestyle Analysis

Lifestyle Analysis
• “Lifestyle” items measured with a 5-point scale.
• 5 point scale 1=Absolutely disagree, 2=Disagree, 3=Not certain/Neutral, 4=Agree, 5= Absolutely agree
• Analysis were performed by comparing each group's rate of positive responses (i.e., 4 & 5 from the 5-point scale)

Analyzing Differences by examining positive response rates.
• Analysis of the groups' statistical value difference is needed to identify differences by groups
• Lifestyle analysis clearly identifies differences by groups by studying the difference in the percentage of positive responses

“HEART” Analysis
• “HEART" is Cheil Worldwide's proprietary database on images reflecting target audience's perceived brand concepts
and brand images.
• It is a new observation research method that allows examining consumers from their own perspectives.
• It also supports marketers to establish creative ideas for ATL and BTL planning

Research Methodology
• Digital camera used to transmit images after taking pictures
• Photo Essay included to explain the photos
• HEART is a new research methodology that entails observing consumers from the first person's viewpoint
Respondents used a digital camera to take pictures and submit them with a title, keywords, and a description
in the form of a Photo Essay.
Submitted images accumulates to the “HEART” database.


Analysis per Subject
Summary: Each Subject

Summary of lifestyles by 19 subtopics concerning
interests, perspective on value, and other
elements of life

Photo Essay

Respondent-submitted pictures and descriptions
used to make Photo Essays providing respondents'
perceptions on each subtopic.


Overall Analysis

Items that show significantly higher rates of
“positive responses (i.e., Absolutely agree & Agree
combined)” from the 5-point scales are presented.

Analysis on Gender

Presenting items that show 4% (or higher)
differences across gender.

Presenting top 10 items by gender for highest
positive response rates. Items with less than 50%
positive rates are marked gray.


Behavior Analysis

Showing frequencies (%) on
Presenting items on “behavioral
behavioral items by
questions” in the order of positive
generations and gender.
response rates by generations and
gender.

Comparing frequencies (%) on behavioral items by
generations and gender.


Analysis of Generation
Summary: Generations

Summary of lifestyles by generation
- Interests, perspective on value and other aspects of life
- Detailed secondary summary by generation presented in 19
subtopics before the comparative analysis on each generation

Photo Essay

Generation 13-18 Generation 19-24 Generation 25-29

Generation 30-39 Generation 40-49 Generation 50-59

Photo Essay includes the images that represent each
generation�s perception on each topic.
- Pictures taken and described by respondents
symbolizes the generation's characteristics.


Analysis of Generation
Comparative Analysis on Generation

Items that show significant variance in comparison to other
generations in positive response rates (i.e., Absolutely
agree & Agree combined).

Comparative Analysis on
Generation and Gender
Top 10 items with the highest positive response rate.
Items with less than 50% positive rates are marked gray.

Items with 4% or higher in
variance by gender


Annual Consumer Research(ACR) on the Korean Lifestyle in 2009
Annual Consumer Research (ACR) on Korean Lifestyle in 2009 is based on extensive consumer
research, and it reveals the latest Korean consumer trends, highlighting the key findings and
differences of each generation’s lifestyle, in terms of the difference of age, generation, regions,
and gender. This book will be a valuable resource for establishing strong marketing and
communication strategies targeted to Korean consumers.

We believe this book will be useful for corporate executives and brand managers at multinational
companies, global advertising agencies, and marketing professionals who are interested in the
South Korean market. In particular, readers who are currently doing business in South Korea or
who have an intention of introducing new products or advertising campaigns in South Korea and
are seeking consumer insights and industry facts & forecasts will gain immediate value from this
publication.

Table of Contents
1. Special: 2009 Annual Consumer Research
2. Overview: Research on the Korean Consumers' Lifestyles
- Research Framework/ Respondents/ Research Contents/ Methodology/ Results
3. Executive Summary: Lifestyles of Korean Consumers, 2009
- Overall Summary/ by Subject/ by Generation
4. Analysis per Subject
- Interests: Interests/ Social
- Perspective on Value: Value TOP10/ Value Photo/ Personal Value/ Society/ Family/ Retirement/
International/ Relations/ Education/ Occupation/ Corporate Social Responsibility/ Environment
- Lifestyle: Lifestyle TOP10/ Lifestyle Photo/ Health/ Diet/ Housing/ Fashion & Beauty/ Finance &
Investment/ Shopping/ Brand/ Advertising/ Hobby & Interest/ Media & Information
5. Analysis per Generation
- Generation 13 to 18: Summary/ In-depth Analysis/ Comparative Analysis by Age & Gender
-Generation 50 to 59: Summary/ In-depth Analysis/ Comparative Analysis by Age & Gender

To obtain the complete report, please visit our publishers.

MarketResearch.com
URL: http://www.marketresearch.com/product/display.asp?productid=2834431
Research and Markets
URL: http://www.researchandmarkets.com/reports/1326919/
ReportLinker
URL: http://www.reportlinker.com/p0357088

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