Customer Satisfaction Rises for Tourism and Food & Beverage Sectors in Singapore: SMU Study

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1 News Release Customer Satisfaction Rises for Tourism and Food & Beverage Sectors in Singapore: SMU Study Singapore, 29 November 2017 (Wednesday) The Institute of Service Excellence (ISE) at Singapore Management University today released the 2017 third quarter (Q3) Customer Satisfaction Index of Singapore (CSISG) results for the Food & Beverage (F&B) and Tourism sectors. Both sectors registered statistically significant increases in customer satisfaction scores compared to Q The Tourism sector scored 74.2 points (+3.14 points/ +4.4% year-on-year) while the F&B sector scored 71.7 points (+1.68 points/ +2.4% year-on-year). F&B Sector Highlights The F&B sector is made up of four sub-sectors including Snack Bars & Food Kiosks*, Cafes & Coffee Houses*, Fast Food Restaurants, and Restaurants. While customer satisfaction remained statistically unchanged year-on-year for the Fast Food Restaurants sub-sector at 71.7 points (+0.92 points/+1.3% year-on-year), a statistically significant year-on-year increase was seen in the Restaurants sub-sector which scored 71.5 points (+1.76 points/+2.5% year-on-year). Locals More Satisfied With Restaurants The increased satisfaction for the Restaurants sub-sector was driven predominantly by higher satisfaction among locals. Locals reported higher scores for drivers of satisfaction such as Perceived Overall Quality and Perceived Value whilst scores for tourists remained statistically unchanged across these dimensions. Locals also gave statistically higher satisfaction ratings for attributes such as ease of making reservations, menu options to suit your needs, and quality of food. Longer Waiting Times Associated With Lower Satisfaction And Loyalty Within the Fast Food Restaurants and Cafes & Coffee Houses sub-sectors, customer satisfaction and loyalty scores were lower among respondents who indicated a wait time of more than 10 minutes to queue and receive their order. There was a similar finding observed among Restaurants respondents who waited more than 20 minutes to receive their food. Given that the issue of waiting time was found to be a common driver of both perceived overall quality and loyalty, F&B operators would do well to bear this in mind when designing their service processes, said Mr Chen Yongchang, Head of Research and Consulting at ISE.

2 Tourism Sector Highlights Within the Tourism sector, the Hotels and Attractions sub-sectors were measured. Compared to the same period last year, the Hotels sub-sector registered a statistically significant increase in customer satisfaction score, achieving a score of 74.4 points (+1.88 points/ +2.6% year-on-year) this year. The increase was driven predominantly by higher Perceived Service and Product Quality. As for the Attractions sub-sector, it achieved a score of 73.3 points (+0.43 points/+0.6% year-on-year). The sub-sector however did not see any statistically significant year-on-year movement in its score. Service A Key Driver of Perceived Quality For Luxury and Upscale Hotels Comparing between Luxury and Upscale Hotels and Economy Hotels, it was apparent that for Economy Hotels, product-related attributes such as ambience of the room and comfort of the room had a larger impact in driving up Perceived Overall Quality than service-related attributes. On the other hand, for Luxury and Upscale Hotels, while product-related attributes were important drivers of Perceived Overall Quality, service-related attributes such as ability of the hotel to accommodate to your needs or requests, and efficiency of the check-in process also emerged as key drivers of perceived quality. While customers expect hotels to do well in ensuring comfortable rooms, excellent service and having well-designed processes remain as key differentiators in the hotel industry. This is especially so for luxury and upscale hotels, said Ms Neeta Lachmandas, Executive Director of ISE. Locals More Satisfied With Attractions, Especially Among Those Accompanied By Their Families While the overall Attractions sub-sector did not see any statistically significant movement in satisfaction, locals were more satisfied this year than in In particular, locals rated attributes such as entertainment and/or educational value of the attraction, cleanliness of the attraction and friendliness and courtesy of the staff statistically higher. In addition, locals who visited the attraction with their families were found to have statistically higher loyalty scores as compared to locals who either went alone or with other companions. When considering local customers, Attractions may wish to consider targeting this segment given that this was the largest segment among locals, and the most loyal, Mr Chen added. The CSISG 2017 Q3 study was conducted between July and October A total of 6,900 respondents comprising 3,035 locals and 3,865 tourists were surveyed. Please refer to Annex A for a background on the CSISG and Annex B for the detailed scores. *Snack Bars & Food Kiosks and Cafes & Coffee Houses are newly constituted sub-sectors. Prior to 2017, Cafes & Coffee Houses and Snack Bars & Food Kiosks were measured as one sub-sector Cafes & Snack Bars. Therefore, there is no basis for year-on-year comparisons. In addition, the following sectors were removed from CSISG measurement in 2017: Bars & Pubs, Food Courts, Travel & Tour Services, and Online Travel Agencies. ********

3 About the Customer Satisfaction Index of Singapore The Customer Satisfaction Index of Singapore (CSISG) is a landmark study that computes customer satisfaction scores at the national, sector, sub-sector, and company levels with the intent of producing a rigorous, objective and comprehensive assessment of Singapore's service levels. Given that the CSISG is the only national customer satisfaction measurement tool with cross sector capabilities, ISE is able to provide organisations with exclusive benchmarking insights about customer satisfaction as well as use predictive analytics and regression models to pinpoint drivers that would deliver the most impact. About the Institute of Service Excellence (ISE) at Singapore Management University The Institute of Service Excellence was jointly set up by Singapore Management University and Singapore Workforce Development Agency in July 2007 to elevate service levels and promote a culture of service excellence in Singapore. Working in close collaboration with government agencies and business leaders, ISE champions service excellence through an integrated approach that encompasses benchmarking and analysis, research and thought leadership, as well as industry engagement. For media queries, please contact: Ms Serene Ashley Chen Assistant Director, Partnerships and Programme Development Institute of Service Excellence (ISE) at Singapore Management University DID: (65) Mobile: (65) serenechen@smu.edu.sg Mr Teo Chang Ching Senior Assistant Director, Corporate Communications Office of Corporate Communications and Marketing DID: (65) Mobile: (65) ccteo@smu.edu.sg

4 Annex A - About the Customer Satisfaction Index of Singapore (CSISG) Introduction The Customer Satisfaction Index of Singapore (CSISG) is a landmark study that computes customer satisfaction scores at the national, sector, sub-sector, and company levels with the intent of producing a rigorous, objective and comprehensive assessment of Singapore's service levels. CSISG measures customers cumulative satisfaction with companies. The scores are generated using a structural equations model (please refer to figure 1) based on survey data collected from end-users after consumption of products and services. Sub-sector scores are derived as a weighted average of company scores, in proportion to the revenue contributions of companies. Sector scores are derived in a similar fashion, aggregating the sub-sector scores proportionately to each sub-sector s revenue contributions. CSISG scores customer satisfaction on a scale of 0 to 100 with higher scores representing better performance. The methodological foundations of the CSISG are based on the American Customer Satisfaction Index (ACSI) that was developed by the National Quality Research Center (NQRC) at the University of Michigan. ACSI has been standardised measure of customer satisfaction in the United States economy since Given that the CSISG is the only national customer satisfaction measurement tool with cross sector capabilities, ISE is able to provide organisations with exclusive benchmarking insights about customer satisfaction as well as use predictive analytics and regression models to pinpoint drivers that would deliver the most impact.

5 Figure 1: CSISG expanded model

6 2017 Q3 SCORES FOOD & BEVERAGE AND TOURISM 74.2 Tourism 74.4 Hotels Luxury & Upscale Hotels 75.1 The Ritz-Carlton 74.6 Marina Bay Sands 74.2 Grand Hyatt 73.7 Hotel Michael 73.5 Pan Pacific Singapore 72.8 Shangri-La 72.2 Mandarin Orchard 72.1 Marina Mandarin Economy Hotels 70.6 Fragrance Hotel 69.5 Hotel Other hotels 73.3 Attractions 74.9 Sentosa 74.5 Singapore Zoo 73.9 Jurong Bird Park 73.4 S.E.A. Aquarium 73.2 Singapore Flyer 73.2 Gardens By The Bay 72.8 River Safari 71.9 Universal Studios 71.8 Adventure Cove 71.1 Night Safari 70.4 Singapore Discovery Centre 71.2 Other attractions 71.7 Food & Beverage 73.6 Snack Bars & Food Kiosks* 72.6 Old Chang Kee 71.0 Jollibean 74.2 Other snack bars & food kiosks 71.9 Cafes & Coffee Houses 73.2 Starbucks 70.3 Toast Box 70.2 Ya Kun 72.2 Other cafes & coffee houses 71.7 Fast Food Restaurants 72.9 Burger King 72.7 McDonalds 71.6 Mos Burger 70.7 Subway 70.4 KFC 70.3 Other fast food restaurants 71.5 Restaurants 73.5 Thai Express 73.5 Boon Tong Kee 73.4 Astons 73.0 Din Tai Fung 72.7 Sushi Tei 72.6 Jack s Place 72.6 Crystal Jade Kitchen 72.3 Ajisen Ramen 72.3 Nando s 72.0 Tung Lok Signatures 72.0 Swensen s 71.4 Imperial Treasure Noodle & Congee 71.4 Seoul Garden 71.2 Sakae Sushi 71.1 Fish & Co 71.1 Pizza Hut 70.6 Crystal Jade La Mian Xiao Long Bao 70.6 Manhattan Fish Market 69.9 Dian Xiao Er 69.6 Xin Wang Hong Kong Cafe 70.9 Other restaurants This chart summarises the results of the CSISG 2017 satisfaction scores in the Food & Beverage, and Tourism sectors at the sector, sub-sector and company levels was the first year of measure for the Cafes & Coffee Houses and Snack Bars & Food Kiosks Subsectors. Previously, they were measured as one sub-sector (i.e., the Cafes, Coffee Houses, & Snack Bars Sub-sector). The sector scores (in gold) represents a weighted average of their respective sub-sector scores (in blue). Satisfaction scores for subsectors with individual company scores are weighted averages of these individual company scores. All scores displayed are accurate to one-decimal place. Entities are presented in decreasing levels of satisfaction. * Companies indicated with an asterisk(*) are companies that have performed significantly above their sub-sector average. * Sub-sectors indicated with an asterisk(*) are sub-sectors that have performed significantly above their sector average. The sparklines indicate the satisfaction score of their respective sectors, sub-sectors and companies over the past few years. statistically significant increase in customer satisfaction from 2016 to 2017 statistically significant decrease in customer satisfaction from 2016 to 2017 no significant year-on-year change in customer satisfaction score

7 CSISG%Quarter% Year-on-Year Change / % Change SECTOR / Sub-sector / Company Measured (+2.4%) FOOD & BEVERAGE (Sector) (+2.5%) Restaurants (Sub-sector) NM NM NM NM NM NM NM NM NM (+2.5%) Swensen's NM NM NM NM NM NM NM NM NM (+1.2%) Tung Lok Signatures NM NM NM NM NM NM NM NM NM (+2.0%) Sakae Sushi NM NM NM NM NM NM NM NM NM ( 1.2%) Dian Xiao Er NM NM NM NM NM NM NM NM NM (+3.6%) Jack's Place NM NM NM NM NM NM NM NM NM (+2.7%) Seoul Garden NM NM NM NM NM NM NM NM NM (+4.6%) Imperial Treasure Noodle & Congee NM NM NM NM NM NM NM NM NM (+2.3%) Crystal Jade Kitchen NM NM NM NM NM NM NM NM NM (+1.2%) Crystal Jade La Mian Xiao Long Bao NM NM NM NM NM NM NM NM NM (+3.3%) Nando's NM NM NM NM NM NM NM NM NM (+2.9%) Boon Tong Kee NM NM NM NM NM NM NM NM (+2.1%) Sushi Tei NM NM NM NM NM NM NM NM NM (+2.4%) Din Tai Fung NM NM NM NM NM NM NM NM NM ( 0.9%) Fish & Co NM NM NM NM NM NM NM NM NM (+3.4%) Ajisen Ramen NM NM NM NM NM NM NM NM NM (+0.7%) Manhattan Fish Market NM NM NM NM NM NM NM NM NM (+4.8%) Astons NM NM NM NM NM NM NM NM NM (+4.4%) Thai Express NM NM NM NM NM NM NM NM NM (+0.4%) Xin Wang Hong Kong Cafe NM NM NM NM NM NM NM NM NM (+0.7%) Pizza Hut NM (+4.3%) Other restaurants (+1.3%) Fast Food Restaurants (Sub-sector) (+0.5%) McDonalds NM (+0.1%) KFC (+2.6%) Burger King NM NM NM NM NM NM NM NM NM (+3.0%) Mos Burger NM NM NM NM NM NM NM NM NM (+2.8%) Subway (+3.5%) Other fast food restaurants NM NM NM NM NM NM NM NM NM NM 71.9 NA NA Cafes & Coffee Houses (Sub-sector) NM (+0.7%) Starbucks NM NM NM NM NM NM NM NM NM (+1.0%) Toast Box NM NM NM NM NM NM NM NM NM (+0.1%) Ya Kun NM NM NM NM NM NM NM NM NM NM 72.2 NA NA Other cafes & coffee houses NM NM NM NM NM NM NM NM NM NM 73.6 NA NA Snack Bars & Food Kiosks (Sub-sector) NM NM NM NM NM NM NM NM NM NM 72.6 NA NA Old Chang Kee NM NM NM NM NM NM NM NM NM NM 71.0 NA NA Jollibean NM NM NM NM NM NM NM NM NM NM 74.2 NA NA Other snack bars & food kiosks (+4.4%) TOURISM (Sector) (+0.6%) Attractions (Sub-sector) (+0.8%) Sentosa NM NM NM NM (+1.8%) Jurong Bird Park NM NM NM NM (+1.6%) Singapore Zoo NM NM NM NM ( 1.5%) Night Safari NM NM NM NM NM NM NM NM (+0.6%) River Safari NM NM NM NM ( 1.6%) Universal Studios NM NM NM NM NM NM NM NM NM (+0.5%) Singapore Discovery Centre NM NM NM NM NM NM NM NM (+0.9%) Adventure Cove NM NM NM NM NM NM NM NM NM NM 73.2 NA NA Singapore Flyer NM NM NM NM NM NM NM NM NM (+1.4%) Gardens By The Bay NM NM NM NM NM NM NM NM (+0.8%) S.E.A. Aquarium (+1.0%) Other attractions (+2.6%) Hotels (Sub-sector) NM (+1.6%) Grand Hyatt NM NM NM NM NM NM NM NM NM ( 2.5%) Marina Mandarin NM ( 1.5%) Mandarin Orchard NM NM NM NM NM NM NM NM NM ( 0.5%) Pan Pacific Singapore NM ( 3.7%) Shangri-La NM NM NM NM NM NM NM NM NM NM 73.7 NA NA Hotel Michael NM (+0.4%) The Ritz-Carlton NM NM NM NM NM NM NM NM NM (+5.6%) Fragrance Hotel NM NM NM NM NM NM NM NM NM (+2.4%) Hotel 81 NM NM NM NM NM ( 3.4%) Marina Bay Sands NM (+3.3%) Other hotels NM Not Measured NA Not Appilcable Customer Satisfaction scores are based on a 0 to 100 scale was the first year of measure for the Cafes & Coffee Houses and Snack Bars & Food Kiosks Sub-sectors. Previously, they were measured as one sub-sector (i.e., the Cafes, Coffee Houses, & Snack Bars Sub-sector). The following sectors were removed from CSISG measurement in 2017: Bars & Pubs, Food Courts, Travel & Tour Services, and Online Travel Agencies.

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