Consumer switching behaviour in Ireland, Aug 2012

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Research commissioned by the National Consumer Agency finds a fall in the number of consumers switching product or service providers

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Consumer switching behaviour in Ireland, Aug 2012

  1. 1. National Consumer Agency Market Research Findings: Consumer Switching Behaviour August 2012 Research Conducted by
  2. 2. Table of Contents 2  Key Findings  Consumer Switching Behaviour Making Complaints  Research Background and Methodology  Profile of Samplewww.nca.ie
  3. 3. 3 Key Findings Making Complaintswww.nca.ie
  4. 4. Key Findings - I 4• Overall 32% of consumers have switched at least one product or service provider in the past year, most likely to have been • Car insurance (16%) • Broadband Internet provider (14%) • Fixed Landline Provider (13%)• Making Complaints Savings from Switching • 96% of those who switched car insurance stated that they saved money by doing so with the average annual amount saved reported as €125• The highest incidence of multiple switching is found in the grocery sector and car insurancewww.nca.ie
  5. 5. Key Findings - II 5• 83% of consumers stated that they found the switching process easy• 59% of consumers who have switched in the past year have found the new service they receive to be better. Just 1% stated that the service they receive is worseNot Switching? Making Complaints• The main reason cited for not switching is due to “satisfaction with the quality/level of service of current provider” with the next highest response being “current supplier offers the best value for money”• Of those who have not switched, over 50% across most sectors rising to 2 in 3 in some sectors have not checked if there is a better package/deal available to them since signing up with current providerwww.nca.ie
  6. 6. 6 Consumer Switching Behaviour Making Complaintswww.nca.ie
  7. 7. Extent of Switching Providers within the Past 12 Months Jun 2012 7 (Base: All holders/purchasers of Nov 2011May/June 2011 products/services) Primary Secondary Tertiary Yes Yes Yes 16 13 11 Fixed line telephone Car Insurance 17 provider 10 Gym membership 7 22 12 7 11 8 3 Electricity supply Home insurance Savings/investment service 11 provider 7 provider 1 17 15 2 Mobile telephone 10 Making Complaints 7 Health insurance 1 provider 12 provider 6 Credit card provider 1 12 9 2 11 7 Provider of credit 2 Main grocery shop 12 Gas supply service 5 (more than 1 year but 1 17 7 excluding mortgage) 1 9 Bank financial 2 1 Mortgage credit Top up grocery shop 10 institution with 2 – Provider 12 current A/C service 3 1 14 4 2 Broadband/internet Life Insurance/ access provider 12 TV service provider 5 Mortgage Protection N/A 16 5 N/A www.nca.ie
  8. 8. Switching Trends – Primary 8 Stated that they saved money as a Incidence of switching result of switching within the past in the Past Year 12 months (Base: All holders/purchasers) (Base: All who have switched in the past year) % % Car insurance provider 16 96 Electricity supply service 11 76 Making Complaints Mobile telephone provider 10 80 Main grocery shop 11 62 Top up grocery shop 9 55 Broadband internet provider 14 68www.nca.ie
  9. 9. Switching Trends – Secondary 9 Stated that they saved money as a result Incidence of switching of switching within the past 12 months in the Past Year (Base: All holders/purchasers) (Base: All who have switched in the past year) % %Fixed/landline telephone 13 72 *Home insurance provider 8 93* Making Complaints *Health insurance provider 7 89 *Gas supply service 7 78 *Bank/financial institution 2 61TV service provider 4 53 * * Caution small basewww.nca.ie
  10. 10. Switching Trends – Tertiary10 Stated that they saved money as a result Incidence of switching of switching within the past 12 months in the Past Year (Base: All holders/purchasers) (Base: All who have switched in the past year) % % * Gym membership 11 81 Savings/investments provider 3 66 * Making Complaints * Credit card provider 1 29 Provider of credit longer than one year excluding mortgage loans 2 72 * Mortgage credit provider 1 30 * **Life insurance/Mortgage Protection 2 82 * * Caution small basewww.nca.ie
  11. 11. Average Savings X Typical Billing Periods (Base: All who have saved by switching in the past 12 months) 11 Average Annual Saving Average Monthly Saving Car Electricity Home Mobile Broadband Fixed Insurance Supply Insurance Phone Line (102) Making Complaints (64)* (36)* (70)* (57)* (57)* €125.12 €168.60 €105.55 €22.42 €17.70 €21.86* Caution small base size www.nca.ie
  12. 12. Experience of the Switching Process (Base: All who have switched providers in the past 12 months)1232% Nov/Dec ‘10 May/Jun ‘11 Nov ’11 June ’12 % % % % 52 51 Very easy 56 59 Making Complaints 88% 92% 84% 83% 32 32 Somewhat easy 32 33 6 Neither/Nor 7 12 3 10 Somewhat difficult 5 4 4 – 1 – 1 Very difficultwww.nca.ie
  13. 13. Quality of Service Received with New Provider (Base: All who have switched service provider - 325) 13 32% Much worse Much better The same/ Mean (1) (2) (4) (5) Don’t know ScoreJune 2012 * 1 38 21 59% 39 3.8November 2011 1 1 29 21 50% 48 3.8June 2011 Making Complaints 12 29 26 55% 42 3.8 – 2 33 26 59% 39 3.9November/December 2010 12 31 30 61% 36 4.0June 2010November/December 2009 –4 31 25 56% 40 3.9 www.nca.ie
  14. 14. Switching Behaviour Past 5 Years – I 14 Switched Past 5 Switched more Years than once (Base: All holders/purchasers) (Base: All switchers past 5 years) % % Car Insurance 34 47 Broadband Provider 28 30 Fixed Line Provider Making Complaints 26 28 Mobile Provider 23 27 Electricity Provider 22 29 Main Grocery Shop 19 60 Top Up Grocery Shop 17 57 Home Insurance 17 31 Gym Membership 16 31 ** Caution small base www.nca.ie
  15. 15. Switching Behaviour Past 5 Years – II15 Switched Past Switched more 5 Years than once (Base: All holders/purchasers) (Base: All switchers past 5 years) % % Health Insurance 15 19 * Gas Supply 13 16 * TV Provider 10 22 * Making7 Complaints Savings/Investments 12 * Life Insurance/mortgage protection 7 12 * Credit card 7 25 * Provider of Credit 7 17 * Bank 6 14 * Mortgage Provider 3 24 * * Caution small basewww.nca.ie
  16. 16. Reasons for Remaining with Current Provider – I (Base: All that have not switched provider within the past 12 months) 16 Mortgage Credit Savings/ June’12 Provider November ‘11 Bank Credit Card Investment of Credit Provider Provider Provider % % % % %Current supplier offers the best 22 21 21 18 18value for money 14 16 17 17 18Time and money needed to switch 8 3 6 4 3outweigh the benefits 7 8 5 4 4Happy with the quality/level ofservice currently providedToo difficult to determine who Making Complaints 49 56 51 43 57 54 58 49 52 49 10 10 8 12 14provides the best value for money 10 6 7 7 7Cannot switch due to limitations 1 8 1 1 5 3 12 2 6 6No convenient alternative provider 3 1 1 1 1 2 – – 1 1Other 1 1 1 2 2 2 3 2 2 2Don’t know 6 5 4 4 4 7 12 13 13 13 www.nca.ie
  17. 17. Reasons for Remaining with Current Provider – II (Base: All that have not switched provider within the past 12 months) 17 Main Top Up June’12 Fixed Broad- Mobile TV Grocery Grocery November ‘11 Landline Band Phone Service Shop Shop % % % % % %Current supplier offers the best 25 27 29 27 34 32value for money 20 21 23 18 24 22Time and money needed to 7 8 6 8 5 5switch outweigh the benefits 5 4 4 3 4 5Happy with the quality/level of 53 48 51 51 47 48service currently providedToo difficult to determine who Making Complaints 9 55 56 61 58 5 58 57 8 6 7 5provides the best value for money 7 6 5 5 5 5Cannot switch due to limitations 2 3 2 2 * * 1 2 1 2 – –No convenient alternative 1 2 1 1 3 4provider 1 1 – 3 2 4Other – 1 1 1 1 * 2 1 1 1 1 1Don’t know 4 4 5 4 4 5 9 10 6 8 7 7 www.nca.ie
  18. 18. Reasons for Remaining with Current Provider – III (Base: All that have not switched provider within the past 12 months) 18 Life June’12 Electricity Gas Health Car Home Gym insurance/ November ‘11 Supply Supply Insurance Insurance Insurance Membership mortgage Service Service protection % % % % % % %Current supplier offers the best 21 33 27 27 22value for money 31 23 17 24 20 20 25 17Time and money needed to switch 6 10outweigh the benefits 7 6 7 5 6 5 4 5 5 5 4Happy with the quality/level ofservice currently provided Making55Complaints 57 52 48 54 56 47 55 45 46 59 52 54Too difficult to determine who 8 7 8 8 8 3provides the best value for money 9 5 7 6 3 9 8Cannot switch due to limitations 2 2 1 1 2 2 3 2 1 1 2 1 4No convenient alternative provider – – * 1 1 4 1 1 – – – 2 3Other * 1 1 1 2 2 3 1 2 2 2 4 1Don’t know 4 4 4 4 6 3 3 11 10 9 9 12 16 www.nca.ie
  19. 19. Latest Occurrence of Checking Better Deals/Packages Available – I (Base: All that have not switched provider within the past 12 months 19 and not contract bound to provider) Mortgage Credit Savings/ Provider Bank Credit Card Investment of Credit Provider Provider Provider % % % % % Past three months 3 1 3 2 1 3 1 4 Past six months 5 7 Past 12 months 7 10 16 10 15Longer than 12 months 18 Making Complaints 17 19 18 19 Havent checked 67 63 67 61 61 www.nca.ie
  20. 20. Latest Occurrence of Checking Better Deals/Packages Available – II (Base: All that have not switched provider within the past 12 months20 and not contract bound to provider) Fixed Broad- Mobile TV Landline Band Phone Service % % % % Past three months 4 5 4 3 Past six months 5 7 6 8 Past 12 months 11 12 12 15 Longer than 12 months Making Complaints 20 21 17 27 Havent checked 59 62 56 48www.nca.ie
  21. 21. Latest Occurrence of Checking Better Deals/Packages Available – III (Base: All that have not switched provider within the past 12 months 21 and not contract bound to provider) Life Electricity Gas Health Car Home Gym insurance/ Supply Supply Insurance Insurance Insurance Membership mortgage Service Service protection % % % % % % % Past three months 3 5 2 3 5 5 2 Past six months 6 7 6 5 10 7 11 13 14 Past 12 months 20 12 24 Making Complaints 27 19 14 17 15Longer than 12 months 18 18 15 17 62 63 58 Havent checked 53 49 52 41 www.nca.ie
  22. 22. How Deals/Packages are Checked – I (Base: All that have not switched provider within the past 12 months 22 & checked around) Mortgage Credit Savings/ Provider Bank Credit Card Investment of Credit Provider Provider Provider % % % % %Visiting Company Websites 29 30 27 27 29Cost comparison sites 13 14 13 14 14Phoned different suppliers Making Complaints 26 35 30 30 29Media – Newspapers, Radio, TV 33 20 29 27 24Visited Store/branch 4 2 2 3 5Provider called to door – – – – 1Other 2 1 1 4 5 www.nca.ie
  23. 23. How Deals/Packages are Checked – II (Base: All that have not switched provider within the past 12 months23 & checked around) Fixed Broad- Mobile TV Landline Band Phone Service % % % % Visiting Company Websites 26 31 23 24 Cost comparison sites 16 16 14 14 Phoned different suppliersMaking Complaints 32 29 30 32 Media – Newspapers, Radio, TV 24 26 30 30 Visited Store/branch – * 7 * Provider called to door 3 2 – 1 Other 3 2 2 2www.nca.ie
  24. 24. How Deals/Packages are Checked – III (Base: All that have not switched provider within the past 12 months 24 & checked around) Life Electricity Gas Health Car Home Gym insurance/ Supply Supply Insurance Insurance Insurance Membership mortgage Service Service protection % % % % % % %Visiting Company Websites 29 26 20 22 27 29 29Cost comparison sites 22 13 13 11 9 15 16Phoned different suppliers Making51Complaints 39 50 36 31 27 31Media – Newspapers, Radio, TV 21 13 13 30 31 21 20Visited Store/branch – – 1 * – – 5Provider called to door – – – 2 1 – 1**Broker – 3 3 – – – 3Other 2 2 3 3 5 6 3 www.nca.ie
  25. 25. 25 Research Background Making Complaints and Methodologywww.nca.ie
  26. 26. A. Research Background and Methodology26 Nov/Dec Nov/Dec May/June Aug 2008 2007 2008 2009 Benchmark Wave 1 Wave 2 Wave 3 Nov/December Nov/Dec 2009 June 2010 May/June 2011 2010 Wave 4 Making Complaints Wave 5 Wave 6 Wave 7 Nov 2011 June 2012 Wave 8 Wave 9 • The research was conducted by way of face-to-face interviewing of 1,002 people between the ages of 15-74. • To ensure that the data is nationally representative, quotas were applied on the basis of age, gender and social class. • Interviewing was conducted over a four week period in June 2012.www.nca.ie
  27. 27. B. Profile of Sample (Base: All aged 15-74 – 1,002) 27 Sex Age Region Social Class % % % % 15-24 17 Dublin 28 Male ABC1 48 49 F50+ 25-34 22 Making Complaints Rest of Leinster 26 35-44 19 45-54 16 Munster 28Female 51 C2DE 52 F50- 55+ 26 Conn/ Ulster 18 Quotas were set on age, gender, region and social class to ensure that the sample was representative of the population. www.nca.ie

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