NCA research on online discount websites

National Consumer Agency Market Research Findings: Online Discount Sites July 2012 Research Conducted by

Table of Contents2 Key Findings Main Findings: Online Discount Sites Making Complaints Research Methodology and Sample Profilewww.nca.ie

3 Key Findings Making Complaintswww.nca.ie

Key Findings - I4• 61% of consumers have signed up to an online discount site.• Of those who have signed up, 61% have purchased a product or service from an online discount site which is equivalent to 37% of the adultMaking Complaints 5 percentage population - an increase of points from the figure (32%) recorded in November 2011.• One in three (33%) of those who purchased from an online discount site have had reason to be dissatisfied with a purchase, up 5 percentage points since November 2011.www.nca.ie

Key Findings - II5 •The main reasons cited for the dissatisfaction were: • Poor service delivery/Poor product quality (34%) • Retailer could not provide service when required/delivery delayed (18%). •Just over half (52%) of those Complaints Making who were dissatisfied complained • 70% complained to the online discount site company and • 43% complained to the actual provider of the product or service. •Over 3 in 5 (61%) of those who complained had their complaint resolved.www.nca.ie

6 Main Findings: Making Discount Sites Online Complaintswww.nca.ie

Interaction with Online Discount Sites7 Signed Up/Registered Purchased a Product and/or with an Online Discount Site Service from on Online Discount Site (Base: All adults aged 16+ – 1,004) (Base: All who have signed up/registered with online discount sites – 611) % % Making Complaints 61% Yes 61% Yes (57%) (56%) Over 3 in 5 Irish adults have registered/signed up with online discount sites. Of these a further 61% state to have purchased something from these sites which equates to 37% of Irish adults. Levels of registration and usage have increased since November 2011.www.nca.ie

Profile of Discount Site Users (Base: All adults aged 16+ – 1,004)8 Signed Up/Registered Purchased a product and/or service with an Online Discount Site from the Online Discount Site % % Gender Gender Male 48 Male 63 Female 73 Female 59 Age Age 16-24 57 16-24 53 25-34 35-44 72 71 Making Complaints Total = 61% 25-34 35-44 68 59 Total = 61% 45-54 61 45-54 59 55+ 46 55+ 61 Region Region Dubln 72 Dubln 73 ROL 53 ROL 56 Munster 61 Munster 55 Conn/Ulster 54 Conn/Ulster 52Females, those aged between 25-44 and those resident in Dublin are more likely to have signed up to a online discount site. Levels of actual usage suggest that males and those in the 25-34 age group who have signed up are more likely to have purchased from the discount sitewww.nca.ie

Frequency of Purchasing (Base: All who have purchased from an online discount site – 371 )9 Frequency of buying deals % More than once a week 3 7% Once a week 4 More than once a month 14 Once a month 15 Making Complaints Once every two months 23 Once every six months 24 Once a year 11 Less often 6 7% of people purchased at least once a week from an online discount site, with over 1 in 3 (36%) of people purchasing at least once a month.www.nca.ie

Satisfaction with Online Discount Sites 10 Incidence of Being Dissatisfied with Purchase Reasons for Being Dissatisfied(Base: All who have purchased a product and/or (Base: All who were dissatisfied - 123) service from an online discount site - 371) % % Poor service delivery/poor product 34 quality Retailer could not provide service when 18 required/delivery delay 33% Making Complaints not as described Yes Product/service 12 (28%) Product/service not received 10 Difficult to redeem voucher 7 Could not contact service provider 6 Highest Amongst 25-34’s – 37% Not as good as originally thought/not 45-54’s – 37% value for money 5 # Dublin – 38% # All others mentions 3% or less Of those that have purchased from an online discount site; one third (33%) expressed their dissatisfaction with at least one purchase. This represents a marked increase in dissatisfaction levels. Primary reason for dissatisfaction was poor service delivery/product quality. www.nca.ie

Sectors Dissatisfaction Relate to ….. (Base: All who were dissatisfied with their purchase – 123) 11Health & Beauty Food & Drink Retail & Services Accommodation 34% 33% 33% 19% Making Complaints Electronics Activities Education Other 18% 11% 3% 1% Dissatisfaction is highest within the Health and Beauty Sector, with over 3 in 10 people unhappy with their purchase, closely followed by the Food & Drink and Retail & Services sector. It can be seen that dissatisfaction is not contained within one individual sector but evident across many. www.nca.ie

Incidence of Complaining when Dissatisfied 12 Did you Complain? Who Did you Complain to?(Base: All who were dissatisfied with their (Base: All who complained – 63) purchase – 123) % % The online discount site company 70 The actual provider 52% (49%) Making Complaints Yes Other 5 43 # All others 2% or less Half of all who were dissatisfied with their purchase complained, increase on November 2011 evident. 7 in 10 complained to the online discount site company while over 2 in 5 complained to the actual provider – this means that complaints directed at both for some. Encouragingly incidence of willingness to complain has increased. www.nca.ie

Factors behind lack of Complaints (Base: All who did not complain – 59) 13 % %Didn’t bother/too much hassle 14 Didn’t feel I was entitled to complaint 5 after service was so cheapWasn’t an expensive purchase 8 Too difficult to complain/did not know 5 how to complainFelt it would be a waste of time 8 Felt the issue was my fault 5 Making Complaintsthe deal terms and I hadn’t fully readI didn’t have enough time 6 5* conditions before buyingWas a service issue, not directly related 6to purchase Don’t know 14 The top reason for not complaining was the perceived bother/hassle it would cause, closely followed by the fact that people felt that the purchase wasn’t expensive enough to warrant a complaint or that it would be a waste of time.* All others 3% or less www.nca.ie

Complaint Resolution (Base: All who complained when dissatisfied – 63)14 Was the Complaint Resolved? % No 61% Making Complaints Yes (52%) 3 in 5 of those who complained had their complaint resolved – an encouraging increase on November 2011 figures.www.nca.ie

15 Research Methodology Making Complaints and Sample Profilewww.nca.ie

Profile of Sample and Research Methodology (Base: All adults aged 16+ – 1,004) 16 Gender Age Social Class Region % % % % 17 Dublin 16-24 ABC1/ 28 Male F50+ 49 25-34 48 22 Making Complaints Leinster Rest of 26 35-44 19 45-54 16 Munster 28 Female 51 C2DE/ 52 F50- 55+ 26 Conn/ Ulster 18• A nationally representative sample of 1,004 adults aged 16+ was achieved via means of an online omnibus.• Fieldwork was conducted between 7th – 14th May 2012.• Please Note: All figures in brackets relate to a previous study undertaken in November 2011. www.nca.ie

NCA research on online discount websites

by National Consumer Agency on Jul 05, 2012

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