National Consumer Agency

Market Research Findings:Online Discount Sites

July 2012Research Conducted by

2

Making Complaints

www.nca.ie

Key Findings

Main Findings: Online Discount Sites

Research Methodology and Sample Profile

Table of Contents

3

Making Complaints

www.nca.ie

Key Findings

4

Making Complaints

www.nca.ie

Key Findings - I

• 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 adult population - an increase of 5 percentage 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.

5

Making Complaints

www.nca.ie

Key Findings - II

•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 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.

6

Making Complaints

www.nca.ie

Main Findings:Online Discount Sites

7

Making Complaints

www.nca.ie

Interaction with Online Discount Sites

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.

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.

61%

Signed Up/Registeredwith an Online Discount Site

Yes 61%

Purchased a Product and/orService from on Online Discount Site

Yes

% %

(Base: All adults aged 16+ – 1,004) (Base: All who have signed up/registered with online discount sites – 611)

(57%) (56%)

8

Making Complaints

www.nca.ie

Profile of Discount Site Users

(Base: All adults aged 16+ – 1,004)

Females, 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 site

Females, 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 site

GenderMaleFemaleAge16-2425-3435-4445-5455+RegionDublnROLMunsterConn/Ulster

4873

577271

6146

725361

54

%

Signed Up/Registeredwith an Online Discount Site

GenderMaleFemaleAge16-2425-3435-4445-5455+RegionDublnROLMunsterConn/Ulster

6359

5368

595961

73565552

%

Purchased a product and/or service from the Online Discount Site

Total = 61%

Total = 61%

9

Making Complaints

www.nca.ie

15

23

24

11

6

34

14

Frequency of Purchasing

Frequency of buying deals

More than once a week%

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. 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.

(Base: All who have purchased from an online discount site – 371 )

Once a week

More than once a month

Once a month

Once every two months

Once a year

Less often

Once every six months

7%

10

Making Complaints

www.nca.ie

Satisfaction with Online Discount Sites

33%

Incidence of Being Dissatisfied with Purchase Reasons for Being Dissatisfied

% %Poor service delivery/poor product quality

Retailer could not provide service when required/delivery delay

Product/service not as described

Product/service not received

Difficult to redeem voucher

Could not contact service provider

Not as good as originally thought/not value for money

34

18

12

10

7

6

5

(Base: All who have purchased a product and/orservice from an online discount site - 371)

(Base: All who were dissatisfied - 123)

# All others mentions 3% or less

Yes

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.

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.

(28%)

#

Highest Amongst25-34’s – 37%45-54’s – 37%Dublin – 38%

11

Making Complaints

www.nca.ie

Sectors Dissatisfaction Relate to …..

(Base: All who were dissatisfied with their purchase – 123)

Health & Beauty34%

Food & Drink33%

Retail & Services33%

Accommodation19%

Electronics18%

Activities 11%

Education3%

Other1%

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.

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.

12

Making Complaints

www.nca.ie

70

43

5

Incidence of Complaining when Dissatisfied

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.

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.

52%

Did you Complain?

Yes

Who Did you Complain to?

The online discount site company

The actual provider

Other

%

%

(Base: All who were dissatisfied with their purchase – 123)

(Base: All who complained – 63)

# All others 2% or less

(49%)

13

Making Complaints

www.nca.ie

Factors behind lack of Complaints

(Base: All who did not complain – 59)

%

Didn’t bother/too much hassle

Wasn’t an expensive purchase

Felt it would be a waste of time

I didn’t have enough time

Was a service issue, not directly related to purchase

14

8

8

6

6

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.

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

Didn’t feel I was entitled to complaint after service was so cheap

Too difficult to complain/did not know how to complain

Felt the issue was my fault

I hadn’t fully read the deal terms and conditions before buying

Don’t know

%

5

5

5

5

14

*

14

Making Complaints

www.nca.ie

Complaint Resolution

3 in 5 of those who complained had their complaint resolved – an encouraging increase on November 2011 figures.

3 in 5 of those who complained had their complaint resolved – an encouraging increase on November 2011 figures.

No 61%

Was the Complaint Resolved?

Yes

%

(Base: All who complained when dissatisfied – 63)

(52%)

15

Making Complaints

www.nca.ie

Research Methodologyand Sample Profile

16

Making Complaints

www.nca.ie

17

48

28

22

26

19

2816

1826

49

5251

Profile of Sample and Research Methodology

Gender Age Social Class Region

Male

Female

16-24

35-44

55+

Dublin

Rest ofLeinster

Munster

Conn/Ulster

ABC1/F50+

C2DE/F50-

%%%%

25-34

45-54

(Base: All adults aged 16+ – 1,004)

• 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.

• 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.