Comparing Prices and Comparison Sites 2012
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Comparing Prices and Comparison Sites 2012

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In the current economic climate shoppers feel the need to take care as to what they are spending their money on. Price comparison sites play a key role for shoppers who are looking to stick to their ...

In the current economic climate shoppers feel the need to take care as to what they are spending their money on. Price comparison sites play a key role for shoppers who are looking to stick to their tight budgets and save money where they can. Discovering what, when and how shoppers compare prices in food and grocery shopping is key to understanding when price comparisons are important to shoppers and when they are more hassle than they are worth.
We know that shoppers feel that online shopping enables them to maintain control of what they spend. Launched in 2006, MySupermarket allows shoppers to compare prices across the largest grocery and health and beauty sites in the UK, ensuring they are getting the best possible prices. It is placed in the top ten for favourite comparison websites by UK shoppers and has three million monthly unique users.
There has been a long battle between the big supermarkets to prove that they are each the best value. Tesco, Asda, Sainsbury’s, Waitrose and Ocado all offer their own price comparison services to their customers in an attempt to reassure them that they offer the best value. Just how convinced are shoppers by these systems and do they really influence shoppers choice of store?
This report will:
-Give you an understanding of what, when and how shoppers compare prices whilst shopping for food and groceries.
-Provide an overview of mySupermarket’s current proposition, including its newest and beta features.
-Consider the usage of mySupermarket, including penetration and the attitudes and behaviours of shoppers whilst they are using the site.
-Highlight issues found from first hand tests of mySupermarket.
-Outline the relationship between price, quality and value for money. Which of these is the biggest driver for retailers and how shoppers know they offer this?
-Give a detailed overview of supermarket’s own price comparison systems and how these are used by shoppers.
-Give a summary of price comparison apps available for smartphones and the usage of food and grocery apps specifically.

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Comparing Prices and Comparison Sites 2012 Comparing Prices and Comparison Sites 2012 Presentation Transcript

  • Comparing Prices and the use ofComparison Sites by GroceryShoppers in the UKSAMPLE EXTRACT Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Tel: 0113 389 1038 http://www.evolution-insights.com www.evolution-insights.com 1
  • About Evolution InsightsEvolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespokeresearch for manufacturers, retailers and agencies. Our research and analysis helps Evolution offer a range of products & services for clients develop targeted shopper clients in the field of shopper research:- marketing initiatives designed to • Off-the-shelf research influence shoppers at the point of purchase. – Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery • Insight Plus – Insight Plus offers your business the opportunity to engage in any of our We use a range of research regular shopper research projects in advance of publication, tailoring the methodologies to discover genuine scope to suit your needs insights. Our research incorporates a broad spectrum of robust • Bespoke Consulting qualitative and quantitative research techniques. – As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects As a leading publisher of shopper – helping to better inform and shape research, we are ideally placed to any further research requirements. offer your business actionable shopper insight. Further information is available at our website http://www.evolution- insights.com Visit and sign up for Reflections, our free quarterly newsletter offering analysis and commentary on topical issues www.evolution-insights.com 2
  • ContentsFigures and graphs 5 Health & Beauty and Wines 43 Companion feature 44Key findings and executive summary 8What this report will do for you 9 MySupermarket: Perceptions and usage 45Gender indices and Likert scales 13 Introduction 46 Awareness and usage 47Food and grocery shopping online: Overview 14 Shoppers opinions 49The UK market 15 Purchasing behaviour 51Size, growth and forecast 16 Summary 53Retailer shares 17The Rise of Generation Y 18 MySupermarket: Test 54 Introduction 55Price comparisons 19 Outline 56Introduction 20 Differences 57Income 21 Examples of Common Product Issues 59Time vs. Savings 22 Summary 62What shoppers compare 23When shoppers compare 26 Supermarkets’ Own Comparison Systems 63How shoppers compare 29 Introduction 64Summary 32 General shopping behaviour in-store 65 General shopping behaviour online 66MySupermarket: Overview 33 Price as a driver to supermarket choice 67Introduction 34 Driver to store choice apart from location 68Comparison features 36 How do shoppers know their supermarket offers cheaper prices? 69Split Basket 37 How do shoppers know their supermarket offers better value for money? 70Brand Stores 38 How do shoppers know their supermarket offers better quality products? 71Cashback 39 Tesco Price Check 72Recipes 40 Asda Price Guarantee 73Multi-media 41 Sainsbury’s Brand Match 74Health Checker 42 Waitrose’s Brand Price Match 75 www.evolution-insights.com 3
  • ContentsOcado’s Tesco Price Match 76Supermarkets’ Own Systems Summary 77Tesco Price Check Usage 78Asda Price Guarantee Usage 79Sainsbury’s Brand Match Usage 80Waitrose and Ocado Usage 81Summary 82Comparison Apps 83Introduction 84MySupermarket 85RedLaser 86Supermarket Own Apps 87Penetration of food and grocery apps for smartphone owners 88Penetration of mySupermarket app for smartphone owners 89Use of smartphones for general price comparison 90Use of smartphones for price comparison for food andgrocery 91Use of internet for price comparison for food and grocery 93Shopping lists 94Summary 95Methodology 96Glossary 100 www.evolution-insights.com 4
  • Figures and graphswww.evolution-insights.com 5
  • Figures and graphsPage Type Title16 Graph UK online food, drink and grocery market expenditure estimates (2006-2015f)17 Graph Online retailer usage penetration18 Graph UK population age profile, 2011 estimate and 2015 projection21 Graph Average UK Household Income Tracker23 Graph I compare the prices of each food or grocery item I buy24 Graph I only compare the prices of larger value food and grocery items25 Graph I compare the total final price of my shop rather than individual items26 Graph I compare the cost of my shopping when I shop in-store27 Graph I compare the cost of my shopping when I shop online28 Graph Demographic split of ‘I compare the cost of my shopping when I shop in-store’28 Graph Demographic split of ‘I compare the cost of my shopping when I shop online’29 Graph I compare the cost of my shopping without using mySupermarket30 Graph I have a general idea how much items should cost, and compare prices against this31 Graph I trust price comparison systems to be correct47 Graph Awareness and usage of mySupermarket.com47 Graph Demographic profile of those who use mySupermarket often48 Graph Online site most frequently used48 Graph Demographic profile of those who use mySupermarket as their most frequent online site49/50 Graph MySupermarket shoppers opinions51 Graph Shoppers reasons for not using mySupermarket.co.uk to purchase items57 Figure Test – Differences59 Figure Test – Examples of Common Product Issues65 Graph Retailer share of main shop in the last month66 Graph Retailer share of online shop in the last month67 Figure Price as a driver to supermarket choice68 Graph Driver to store choice apart from location69 Graph How do shoppers know their supermarket offers cheaper prices?70 Graph How do shoppers know their supermarket offers better value for money?71 Graph How do shoppers know their supermarket offers better quality products? www.evolution-insights.com 6
  • Figures and graphs77 Figure Supermarkets’ Own Systems Summary78 Figure Tesco Price Check Usage79 Figure Asda Price Guarantee Usage80 Figure Sainsbury’s Brand Match Usage81 Figure Waitrose Brand Price Match Usage81 Figure Ocado Tesco Price Match Usage88 Graph Penetration of food and grocery apps for smartphone owners89 Graph Penetration of mySupermarket app for smartphone owners90 Figure Use of smartphones for general price comparison91 Graph Compare the price of a product to other supermarkets92 Figure Compare the price of a product to other supermarkets while you are actually in the supermarket93 Graph Compare the price of a product to other supermarkets at any time using the internet94 Graph Smartphone owners awareness of using their phones to scan items to create a shopping list94 Graph Demographic split of those who use their smartphone to scan items to create a shopping list www.evolution-insights.com 7
  • Key findings and executive summary – What this report will do for youThis report will:Give you an understanding of what, when and how shoppers compare prices whilst shopping for food and groceries.Provide a overview of mySupermarket’s current proposition, including its newest and beta features. Consider the usage of mySupermarket, including penetration and the attitudes and behaviours of shoppers whilst they are using the site. Highlight issues found from first hand tests of mySupermarket.Outline the relationship between price, quality and value formoney. Which of these is the biggest driver for retailers and how shoppers know they offer this? Give a detailed overview of supermarket’s own price comparison systems and how these are used by shoppers. Give a summary of price comparison apps available for smartphones and the usage of food and grocery apps specifically. www.evolution-insights.com 8
  • Price comparisons – Time vs. SavingsIs the time spent comparing prices worth the potential savings? Time Vs. Savings It is important that the shopper feels that the time they invest in comparing prices is worth the potential savings that they could make. This is especially true for online shopping, as shoppers who choose this method of shopping primarily do so for its convenience. For some shoppers, any wasted time spent comparing prices negates the benefits of savings made. This is especially true for shoppers who, when shopping in-store, choose to travel further in order to take advantage of the best deals for them. I don’t use my nearest supermarket, I go to another one because of their offers www.evolution-insights.com 9
  • Price comparisons – When shoppers compare I compare the cost of my shopping when I shop in-store 27.0 Agree 40.0 Neither agree nor disagree Disagree 33.0 Shoppers are far more likely to compare the cost of their food and grocery shopping whilst shopping in-store than online.n=1007 www.evolution-insights.com 10
  • Price comparisons – SummaryWhat?Shoppers are slightly more likely to compare thecost of individual food and groceryitems, although some shoppers also reportcomparing large value items only or the total costof a shopping trip. There is no general behaviourwhen it comes to what food and grocery pricesshoppers compare.When?Price comparisons are, however, most likely tooccur when shopping in-store rather than online.Online shopping is chosen for itsconvenience, and taking time to compare pricesgoes against this key driver.How?Experienced primary food and grocery shoppersare most likely to have a general idea of theaverage price they expect to pay for items. Theycompare prices they are faced with against thisknowledge, rather than actively seeking outcurrent prices across different retailers, as this isquicker and easier for shoppers. www.evolution-insights.com 11
  • MySupermarket: Overview – Introduction Two thirds of shoppers think that onlineshopping enables them to maintain control of what they put in their basket, helping them keep track of what they spend. 60% of online shoppers agree that they are less likely to make impulse purchases online than when in-store. And with nearly half (47%) admitting to visiting two or more supermarkets a week in their quest for the best value, mySupermarket offers both value in comparisons and control of online shopping in one go. MySupermarket.co.uk was launched in 2006 allowing shoppers to compare prices across the largest grocery and health and beauty sites in the UK, ensuring that they get the best possible value. Importantly, mySupermarket is completely independent from the retailers featured on the site. www.evolution-insights.com 12
  • MySupermarket: Perception and usage – Purchasing behaviour (2)Shoppers reasons for not using mySupermarket.com to purchase items. I forget that you I always use my own can, and sometimes I don’t think that they supermarket have problems logging deliver in my area in I like a range of own I’m not sure if I can still brand get my Loyalty points products, particularly Marks & Spencer I find it very difficult to use They do not appear to stock all items at They dont list prices various supermarkets It does not cover the for Morrisons, and I on their website. It is supermarket which I would never order limited I find. use most. from Tesco or Asda. A lack of understanding of the site appears to be the main barrier to its widespread use. For example, shoppers do not know who will deliver their products, or if they can still get their loyalty points. mySupermarket would find great benefit in making sure that shoppers are fully aware of their full range of services and the workings of their site. www.evolution-insights.com 13
  • Supermarkets’ Comparison Systems – Price as a driver to supermarket choiceExcluding location, price is the biggest driver to supermarket choice. Looking at the breakdown ofshoppers at their preferred supermarket, Asda is clearly ahead when it comes to cheapest prices, inthe minds of their shoppers. Prices Grocer 33 average price position 28.9% 1.2/5 19.2% 2.5/5 13.5% 2.8/5 6.5% 3.8/5 3.1% 4.8/5Average ranking by price has been calculated across 12 weeks fromThe Grocer 33. In comparing these to shoppers opinions it is clear that Tesco is my nearestshoppers are aware of the differences in pricing between supermarket but I shop atsupermarkets. Asda because it is cheaper www.evolution-insights.com 14
  • Supermarkets’ Comparison Systems – Waitrose and Ocado UsageWaitrose Ocado Less than half of all primary shoppers are aware of either Waitrose or Ocado’s Brand Price Match systems. Only a tiny percentage of shoppers actually trust these Brand Match promises. More effective advertising needs to be done to raise awareness and create trust for these systems. n=1007 www.evolution-insights.com 15
  • Comparison Apps – Use of internet for price comparison for food and groceryCompare the price of a product to other supermarkets at any time using the internet 108 45.0 41.1 40.0 34.6 92 35.0 27.5 29.1 30.0 25.0 % 20.0 17.0 15.0 17.2 15.0 12.6 10.0 5.9 5.0 0.0 0.0 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and AB C1 C2 DE over Women are more likely than men to compare prices across supermarkets using the internet, as they are more cost-conscious. Younger shoppers and higher social classes are also more likely to use the internet to compare supermarket prices, as these shoppers are the most technologically savvy and aware of the opportunity to do this. Those who answer ‘Aware and use occasionally’ or ‘Aware and use often’ to ‘Compare the price of a product to other supermarkets at any time using the internet.’ n=280 16
  • Methodologywww.evolution-insights.com 17
  • Methodology • Evolution carried out a preliminary survey ofEvolution’s methodology around 100 shoppers to test questions for the main survey. • Detailed secondary and desk research is Secondary and Preliminary conducted to define the topic area, macro drivers desk research quantitative survey and trends, scope and examples within the research topic. • Initial insights gained are used to help further design the main survey. • A main survey is completed by at least 1,000 UK adults who are the primary household shopper for Main quantitative food & grocery. Focus groups survey • Focus groups are carried out to further enhance the secondary research and main quantitative survey. • Comprehensive and detailed assessment of all the data received was then used to uncover insights. Insights • Throughout this process, primary research was supported by secondary research drawing on Evolution’s proprietary databases, national statistics, news and industry resources. www.evolution-insights.com 18
  • Methodology: quantitative research - surveyTopics of questions in quantitative survey Demographic profiling • Detailed shopper insights were gained from a survey of 1,007 Preferred retailer offline primary shoppers. The samples were fully representative of the UK Drivers of retailer choice population including teenagers aged 13-17. Online retailer usage in terms of frequency and most regular • The survey contained 20 questions relating to topics outlined to the Awareness of supermarkets own comparison systems left – in addition to standard demographic profiling questions Usage of supermarkets own comparison systems in terms of checking receipts, receiving and redeeming vouchers • The questions were designed to give maximum insight into Trust of supermarkets own comparison systems. shopper’s motivation and behaviour Awareness and usage of mySupermarket • Additional questions were asked to give further insights into general Opinions of mySupermarket shoppers behaviour and attitudes into price comparisons. Usage of food and grocery apps, including price comparison apps • The survey was carried out during the week commencing 18th June Price comparisons using smartphones and the internet. 2012. www.evolution-insights.com 19
  • Methodology: qualitative research – focus groupsList of focus group participantsFocus Group Participants • 2 focus groups was conducted Socio- Number of children on the 12th June 2012 withGender Age economic in household primary shoppers to gainFemale 20-29 C2 2 further insight into comparisonFemale 30-39 D 3 behaviour.Female 30-39 C1 2Female 40-49 D 1 • The subjects covered were:-Female 20-29 C2 1 – Price comparison usage – Different price comparison behavioursFocus Group Participants Socio- Number of children – Supermarkets priceGender Age economic in household comparison systemsFemale 20-29 AB 0 – MySupermarketFemale 30-39 AB 0Female 30-39 C1 0Male 30-39 AB 0Female 20-29 C2 0 www.evolution-insights.com 20
  • Contact us Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Telephone: 0113 336 6000 e-mail: insights@evolution-insights.com Web: http://www.evolution-insights.com Company No. 07006001 Country of Incorporation: United Kingdom © Evolution Insights Ltd. All rights reserved 21