here - National Consumer Agency

Report
National Consumer Agency
Market Research Findings:
Consumer Switching Behaviour
August 2014
Research Conducted by
2
Key Findings
Making Complaints
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Key Findings - 1
3
• When describing their consumer behaviour, overall 25% of consumers said
they ‘change companies often and avail of better deals’, a further 38% said
that while they generally stick with the same companies they do ‘look
around’ for other providers. 36% of consumers said they ‘tend to stick with
the same company Making
for products Complaints
and services’.
• Overall the proportion who have switched at least one product or service
provider in the past 12 months is 43%.
• Switching provider is highest for car insurance (25%), electricity (17%) and
gas (17%), followed by gym membership (15%) and main grocery shop (14%).
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Key Findings - 2
4
• 76% described the process of switching provider as ‘easy’. Consumers rated
gas (92%) and electricity (89%) supply services as the easiest to switch.
• Majority of switchers saved money – with average monthly savings resulting
from switching being;
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• mobile phone provider - €24.
• electricity provider - €21.
• car insurance provider and gas provider both - €15
• When asked about their behaviour in a number of key sectors, significant
numbers of consumers said that they have not checked recently to see if
there is a better package/deal available to them.
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5
Consumer Switching Behaviour
Making Complaints
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Consumer Behaviour
Base: All Adults – 999
6
Nov 2012
June 2013
Dec 2013
July 2014
%
%
%
%
More likely to be
I tend to stick to the same
companies
I generally stick with the same
companies but will look around
I change companies often and
avail of better deals whenever I
can
44
37
33
Making Complaints
35
40
38
27
26
25
33
23
36
Women, 65+, C2DE and
farmers and those living
in Conn./Ulster
U35s, ABC1, Rest of
Leinster and Munster
A slight increase in consumers saying that they tend to stick to the same companies, but the
majority still say they shop for the best price.
Q.
Which of the following statements most closely describes your behaviour as a consumer?
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Consumer Behaviour - Demographics
Base: All Adults – 999
7
All Adults
June ‘13Dec ‘13 July ‘14
%
%
%
I tend to stick with the
same companies for
products & services
37 33 36
Gender
Male
%
34
Female
%
39
Age
U 24
%
25-34
%
35-49
%
29 28 30
Region
Social Class
50-64
%
65+
%
ABC1
%
C2DE
%
F
%
Leinster
%
27
30
39
Dublin
%
41 44
39
Mun- Conn/
ster
Uls
%
%
37
45
64
I generally stick with
the same companies for
products and services
but will look around if I
experience poor service
or price increases
I change companies
often and will avail of
better deals/service
whenever I can
Making Complaints
32 36
35 40 38
27 26 25
41
36
41
37 35
35
43
31
28
37 36
25 25
42
40
47
30
23 20
8
22 21
18
30 28
24
Older adults and those from C2DE socio economic group and farming backgrounds continue to be the more
inclined to stick to same companies
Q.
Which of the following statements most closely describes your behaviour as a consumer?
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Trends in Switching Behaviour
Base: All who hold each product
Switched in past year %
8
16
19
23
26
25
Car Insurance
Electricity supply
service
Mobile telephone
provider
8
11
Making Complaints
20
17
14
9
Jun-12
Dec-13
Home insurance
provider
10
10
11
12
9
Main grocery shop
Broadband/internet
access provider
Fixed line telephone
provider
16
15
17
11
Top up grocery shop
Gym membership
11
15
14
15
15
13
8
14
18
11
8
10
14
15
13
7
8
9
13
9
7
5
16
16
17
14
14
12
14
11
14
13
Nov-12
Jul-14
Health insurance
provider
26
Gas supply service
20
20
Bank financial
institution with
current A/C service
TV service provider
2
4
4
6
3
4
6
7
10
7
Jun-13
Incidence of switching is highest in relation to car insurance, electricity and gas provider.
Overall 43% have switched at least one product or service within the last 12 months (2%
less than previous wave)
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9
8
11
6
Waste provider
N/A
N/A
Credit card provider
Savings/
investment provider
Mortgage credit
Provider
1
3
2
3
3
3
4
3
1
Ø
5
N/A
2
2
2
Life Insurance/ Mortgage 3
4
Protection
3
Provider of credit
N/A
N/A
1
1
4
Majority of Switchers Feel they have Saved Money
Base: All who switched products or services
9
%
Car insurance provider
(173)
Home insurance provider
(75)
Electricity supply service
(149)
Gas supply service
(59)
85
Life Insurance/Mortgage Protection provider
(12)
85
90
87
86
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Health insurance provider
(36)
Waste/Bin service provider
(49)
84
TV Service provider e.g. Sky, UPC
(44)
84
Fixed/Land line telephone provider
(57)
Mobile telephone provider
(96)
Broadband Internet access provider
(88)
Bank / financial institution who offers a current account service
(22)
()=base size
85
83
81
80
51
Across the majority of sectors between 80% and 90% believe that they have saved money by
switching to a different provider, with exception being switching current accounts at 51%.
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Q.
Did you save money by switching providers for this product/service?
Reported Monthly Savings from Switching
Base: All switchers in each category
10
Saved money when switched
Average monthly savings
€
Car insurance provider (158)
15.33
Electricity supply service (127)
21.06
Mobile telephone provider (81)
24.35
Broadband internet access (71)
12.96
Home insurance provider (67)
12.99
Gas supply service (51)
15.08
Fixed/ Landline telephone provider (48)
14.93
Waste / Bin service provider (42)
8.66
TV service provider e.g. Sky, UPC (37)
20.23
Health insurance provider (31)
34.51
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Monthly savings made by switching mobile telephone provider on average were found to be €24. On average
consumers saved €21 when switching electricity provider and €15 when switching car insurance or gas provider.
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Ease of Switching
Base: All who have switched providers in the past 12 months
11
%
44
Very easy
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76%
76% describe the process of
switching provider as easy.
32
6
13
6
Q.
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Somewhat easy
Neither/Nor
Somewhat difficult
Very difficult
Thinking about the switching process, how would you describe it?
Ease of Switching - Demographics
Base: All who have switched providers in the past 12 months
Gender
Age
Social Class
12
Total
Very Difficult
433
%
199
%
6
6
Somewhat
Difficult
13
Neither/Nor
6
Somewhat
Easy
Male Female
32
12
47
%
98
%
6
7
7
7
33
25-34 35-49 50-64
234
%
13
5
-24
31
138
%
2
13
12
13
5
6
5
99
%
6
13
11
10
6
13
F
Dublin
168
%
19
%
132
%
4
8
7
5
16
8
18
18
5
5
246
%
6
31
29
Making
33 Complaints
33
34
44
43
46
42
46
46
35
Very Easy
Any Easy
51
%
ABC1 C2DE
7
30
31
31
44
Any Difficult
65+
18
75
18
77
19
74
19
77
20
75
15
79
19
75
21
66
Q.
122
%
4
9
113
%
5
6
5
11
28
66
%
11
19
30
6
39
31
41
19
74
47
16
77
55
39
45
24
70
Little variation in the assessment of ease or difficulty of switching by demographics, older
consumers and those living in Dublin & Conn/Ulster find switching slightly more difficult.
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Lein- Mun- Conn/
ster ster
Uls
In general when thinking about the switching process, how would you describe it?
23
72
38
13
77
33
10
85
30
64
Ease of Switching across Sectors
Base: All who have switched providers in the past 12 months
13
Gas supply
Electricity
service
supply service
59
%
149
%
Home
insurance
provider
Broad-band
Internet
access
provider
75
%
88
%
Waste / Bin
Car insurance
service
provider
provider
49
%
173
%
Fixed/
Landline
telephone
provider
57
%
TV Service
Mobile phone
provider e.g.
provider
Sky, UPC
96
%
32
Very Easy
44
54
59
53
44
53
37
Neither/Nor
Somewhat
Difficult
Very Difficult
Any Easy
Any Difficult
35
33
92
8
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27
2
11
5
5
11
1
89
7
Q.
83
12
81
17
14
4
2
81
6
5
14
1
33
17
4
80
77
15
15
*Caution small base
24
36
27
8
8
7
22*
%
31
20
4
7
1
0
8
0
33
63
Making
Complaints
46
Somewhat Easy
44
%
Financial
institution
who offer
curr. Acc.
service
5
12
20
20
7
6
76
19
69
27
In general when thinking about the switching process, how would you describe it?
8
55
28
Occurrence of Checking for Better Deals/Packages Available
Base: All who hold products
14
Car insurance
provider
W12
737
%
Past 12 months
W13
699
%
51
56
Home
insurance
provider
Broadband
internet
access
provider
Fixed/
Landline
tele-phone
provider
Mobile
telephone
provider
Health
insurance
provider
Gas supply
service
W12
600
%
W12 W13
702 703
%
%
W12
559
%
W12
951
%
W12
386
%
W12
331
%
43
More than 3 years
ago
19
15
37
41
22
33
W13
952
%
31 27
W13
416
%
30 29
W13
350
%
29 32
W12
690
%
W13
663
%
28 25
21
9 11
23
21
13
21
12
15 18
8
11 12
9
10
16
7
17
8
17 21
8
W12
880
%
W13
870
%
27 28
19 18
28
34
38
45
39 37
47 43
49
43
Waste / Bin
service
provider
W12
751
%
W13
765
%
22 19
11
47 43
Q.
W12
830
%
18
W13
844
%
11
13
7
14
11
10
W12
377
%
16
46 43
55
49
When was the last time you checked to see if there was a better deal/package available for?
W13
386
%
21
13
11
13
Gas, electricity & mortgage protection are the only sectors seeing an increase in
checking for better offers in the past 12 months
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Bank/ Financial
Life insurance/
institution who
Mortgage
offers curr. acc.
protection
service*
17
15
8 10
9
7 9
2120
19 24
Electricity
supply
service
15 19
Making Complaints
33 32
Have never
checked
30
W13
511
%
20
15
More than 12
months but less
than 3 years ago
W13
598
%
TV service
provider e.g.
Sky, UPC
57
64
60
47
15
Research Background
and Methodology
Making
Complaints
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Research, Background and Methodology
16
•
The NCA has undertaken frequent national surveys of public attitudes and behaviour since
2007. Each of these have been similarly structured to represent the national adult population
in Ireland.
•
This is the third wave of tracking research to be conducted by Behaviour & Attitudes, but the
thirteenth in the NCA’s tracking series.
•
In order to ensure that the findings are comparable with previous studies, the same
methodology was utilised.
•
Making Complaints
•
999 interviews were conducted using CAPI machines (small handheld personal
computers on which the survey interview is ‘hosted’.)
•
Interviewing was undertaken face-to-face, in home, at 63 randomly selected sampling
locations.
•
Quota controls used in relation to gender, age and social class, with sampling points
chosen in proportion to the regional distribution of population. Quotas were based on
the latest census of population and industry agreed estimates in relation to social class.
Interviewing was conducted between 30th June and 13th July 2014.
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Incidence of Currently Holding Products or Services
Base: All Adults – 999
17
Dec-13
%
Currently Hold Products or Service
Jul-14
Vs
Dec
Mobile telephone provider
87
88
83
85
Electricity supply service
Bank/financial institution who offers a current a/c service
Car insurance provider
Waste/Bin Service Provider
Broadband Internet access provider
TV Service provider e.g. Sky, UPC
Top-up grocery shop
Making Complaints
Main grocery shop
Home insurance provider
Fixed/Land line telephone provider
Savings/investments provider
Credit Card provider
Life Insurance/Mortgage Protection
Health insurance provider
Gas supply service
Mortgage credit provider
Provider of credit longer than 1 year excl mortgage loans
Gym membership
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15
14
26
25
24
24
40
43
36
37
36
40
33
36
57
58
54
51
56
60
72
69
75
77
69
70
68
66
72
81
73
76
95
95
=
+1
+2
-3
+2
+1
-2
+9
+3
+1
-3
+4
+3
+1
+4
+3
-1
=
-1

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