nca consumer switching research february 2012
DESCRIPTION
A survey of consumer switching behaviour, across different sectors, for the National Consumer Agency.TRANSCRIPT
National Consumer Agency
Market Research Findings: Consumer Switching Behaviour
February 2012
Research Conducted by
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Key Findings
Consumer Switching Behaviour
Research Background and Methodology
Profile of Sample
Table of Contents
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Key Findings
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Key Findings - I
• 38% switched providers in the past year, consumers are most likely to have switched
• car insurance (13%, ↓4%) • mobile phone provider (12%, ↑1%) • main grocery shop (10%, ↓4%)
• Overall, across all categories, 85% of consumers, who had switched service providers in the last twelve months, said they had saved money as a result
• 95% of those switching car insurance have saved money by doing so with the average amount saved indicated as €102
• 91% saved by switching house insurance where an average of €84 was
saved
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Key Findings - II
• 84% of consumers stated that they found the switching process easy • 50% of consumers who have switched in the past year have found the new
service they receive to be better. Just 2% stated that the service they receive is worse
Not Switching?
• The main reason is due to “satisfaction with the quality/level of service of current provider”
• the next highest response “current supplier offers the best value for money”
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Consumer Switching Behaviour
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7
5
3
2
2
4
8
10
5
3
2
4
7
6
3
3
3
2
2
1
1
3
2
1
1
1
2
1
1
1
1
13
9
12
10
9
9
17
14
11
14
10
11
12
11
10
8
7
8
Extent of Switching Providers within the
Past 12 Months
(Base: All aged 15-74 with each product/service – 1,000)
Car Insurance
Electricity supply
service
Mobile telephone
provider
Main grocery shop
Top up grocery
shop
Broadband/internet
access provider
Yes
Switching Providers Nov ‘11
May/June ‘11
Nov/Dec ‘10
Primary Secondary Tertiary
Fixed line telephone
provider
Home insurance
provider
Heath insurance
provider
Gas supply service
Bank financial
institution with
current A/C service
TV service provider
Yes
Gym membership
Savings/investment
provider
Credit card provider
Provider of credit
(more than 1 year but
excluding mortgage)
Mortgage credit
provider
Waste service
provider*
Yes
– –
–
(-5%) (-5%)
* New question
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Switching Behaviour – Primary
* Caution small base
%
13
9
9
10
7
5
12
9
3
2
21
14
16
17
14
10
20
14
6
3
Within the Past Year
Car insurance provider
Electricity supply service
Broadband internet access
Main grocery shop
Fixed/landline telephone
Home insurance provider
Mobile phone provider
Top up grocery shop
Health insurance provider
Gas supply service
More Than Once Within the Past 5 Years
%
95
76
80
69
77
91
85
55
88
83
(Base: All aged 15-74 with each product/service – 1,000)
*
*
Saved money as a result of switching within the past 12 months
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Switching Behaviour – Secondary
* Caution small base
%
2
4
2
1
1
3 4
1
1
2
2
6
6
3Gym membership
TV service provider
Bank/financial institution
Credit card provider
Savings/investments provider
Mortgage credit provider
Provider of credit longer than one
year excluding mortgage loans
Waste Services
%
66
56
48
51
62
74
(Base: All aged 15-74 with each product/service – 1,000)
– –
– –
*
*
*
*
*
Within the Past Year
More Than Once Within the Past 5 Years
Saved money as a result of switching within the past 12 months
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Average Amount Saved as a Result of
Switching Provider
(Base: All who stated that they saved money by
switching providers in the past 12 months)
Home Insurance Provider
€84
Car Insurance Provider
€102
Don’t Know = 10% Don’t Know = 12%
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Experience of the Switching Process (Base: All who have switched providers in the past 12 months – 383)
38%
Very easy (5)
Somewhat easy (4)
Somewhat difficult (2) Very difficult (1)
Neither/Nor (3)
5259 56
32
3332
123 74 514
92%
88%
% %
May/June 2011
Nov/Dec 2010
– –
84%
%
November 2011
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Service Receiving with New Provider
38%
29
29
33
31
31
21
26
26
30
254
2
2
2
1
(Base: All who have switched service provider - 383)
November 2011
June 2011
November/December 2010
June 2010
November/December 2009
(4)
Much better (5)
The same/ Don’t know
Mean Score
48 3.8
42 3.8
39 3.9
36 4.0
40 3.9
(2) Much worse
(1)
59%
61%
56%
55% 1
–
50% 1 1
–
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14
7
56
10
3
2
2
7
Reasons for Remaining with Current
Provider – I
(Base: All that have not switched provider within the past 12 months)
% Current supplier offers the best
value for money
Time and money needed to switch
outweigh the benefits
Happy with the quality/level of
service currently provided
Too difficult to determine who
provides the best value for money
Cannot switch due to limitations
No convenient alternative provider
Other
Don’t know
Bank
%
Mortgage Credit
Provider
16
8
43
6
12
3
12
%
Credit Card
Provider
17
5
54
7
2
2
13
%
Savings/ Investment
Provider
17
4
49
7
6
1
2
13
%
Provider of Credit
18
4
49
7
6
1
2
13
%
Waste Services
18
4
55
4
1
7
2
9
– –
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Reasons for Remaining with Current
Provider – II
(Base: All that have not switched provider within the past 12 months)
% Current supplier offers the best
value for money
Time and money needed to
switch outweigh the benefits
Happy with the quality/level of
service currently provided
Too difficult to determine who
provides the best value for money
Cannot switch due to limitations
No convenient alternative
provider
Other
Don’t know
Fixed Landline
20
5
55
7
1
1
2
9
%
Broad- Band
21
4
56
6
2
1
1
10
%
Mobile Phone
23
4
61
5
1
1
6
%
TV Service
18
3
58
5
2
3
1
8
%
Main Grocery
Shop
24
4
58
5
2
1
7
%
Top Up Grocery
Shop
22
5
57
5
4
1
7
–
– –
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Reasons for Remaining with Current
Provider – III
(Base: All that have not switched provider within the past 12 months)
% Current supplier offers the best
value for money
Time and money needed to
switch outweigh the benefits
Happy with the quality/level of
service currently provided
Too difficult to determine who
provides the best value for money
Cannot switch due to limitations
No convenient alternative
provider
Other
Don’t know
Health Insurance
17
5
52
9
3
1
3
11
%
Car Insurance
24
4
55
5
2
1
10
%
Home Insurance
20
5
56
7
1
2
9
%
Electricity Supply Service
20
5
55
8
1
2
9
%
Gas Supply Service
25
5
46
6
2
2
2
12
%
Gym Membership
17
4
52
3
1
3
4
16
– – –
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Research Background and Methodology
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The research was conducted by means of face-to-face interviewing with 1,000 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 November 2011.
Research Background and Methodology
Nov/Dec
2007 Aug 2008
Nov/Dec
2008
Nov/Dec 2009 June 2010 Nov/December
2010
Benchmark
Wave 4 Wave 5
Wave 1 Wave 2
Wave 6
May/June 2011
Wave 7
May/June
2009
Wave 3
Nov 2011
Wave 8
Current Wave
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28
4822
52
19
2816
1826
49
26
51
SEX AGE REGION SOCIAL CLASS
Profile of Sample - I
(Base: All aged 15-74 – 1,000)
Male
Female
% % % %
15-24
25-34
35-44
45-54
55+
Dublin
Rest of Leinster
Munster
Conn/ Ulster
ABC1 F50+
C2DE F50-
MAIN GROCERY
SHOPPER
Yes No 47%53%
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54
57
40
70
66
54
38
80
77
72
85
84
76
69
55%45%
78%
22%
Profile of Sample – II – Internet Use
(Base: All aged 15-74 – 1,000)
USE INTERNET
No Yes
EVER PURCHASED
ONLINE
No Yes
BANKING
ONLINE
No Yes
(Base: All Internet Users - 762) (Base: All Internet Users - 762)
76%
24%
() = May/June 2011
(75%)
(25%)
(49%) (51%)
(30%)
(70%)
Male
Female
15-24
25-34
35-44
45-54
55+
% Yes
Male
Female
15-24
25-34
35-44
45-54
55+
% Yes
Male
Female
15-24
25-34
35-44
45-54
55+
% Yes
76
76
95
92
88
73
44
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Profile of Sample – III – Social Media
Type of phone
Regular users of .......
(Base: All aged 15-74 – 1,000)
45
46
39
44
42
44
29
%
Higher amongst:
15-24’s
25-34’s
ABC1/F50+
Working full time
Students
Dublin
%
Higher
Amongst
Bebo
None of These
50
10
6
2
48
47
10
6
1
51
%
Have a ‘Smart phone’
() = May/June 2011
Nov 2011
May/June 2011
(21)
15-24 86%
ABC1F50 59%
Dublin 55%
15-24 21%
55+ 86%
C2DEF50- 56%
Munster 53%