National Consumer Agency

Consumer Switching Behaviour Market Research Findings

August 2009Research Conducted by

2

Making Complaints

A. Research Background & Methodology B. Profile of Sample

KEY FINDINGS:

SECTION 1: Consumer Switching Behaviour

Table of Contents

3

Making Complaints

B. Profile of Sample – I

(Base: All aged 15-74 – 1,000)

Male

Female

% % % %15-17

18-24

25-34

35-44

45-54

55-64

65-74

Married

Living as Married

Single

Wid/Div/Sep

AB

C1

C2

D

E

F50+F50-

MAIN GROCERY SHOPPER

Yes No

6

43

12

16

26

24

37

2617

10

2018

710

792

45

10

55

SEX AGE MARITAL STATUS SOCIAL CLASS

44%56%

4

Making Complaints

B. Profile of Sample – II – Internet Use

(Base: All Respondents – 1,000)

USE INTERNET

No Yes

EVER PURCHASED ONLINE

No Yes

BANKING ONLINE

No Yes

(Base: All Internet Users - 650) (Base: All Internet Users - 650)

65%35%71%

29% 49%51%

() = figures from wave 2 ’08

(64%)(36%) (42%)(58%)(34%)

(66%)

63

67

85

79

66

60

28

Male

Female

15-24

25-34

35-44

45-54

55+

% Yes

72

70

64

80

76

65

63

Male

Female

15-24

25-34

35-44

45-54

55+

% Yes

48

49

32

64

54

47

41

Male

Female

15-24

25-34

35-44

45-54

55+

% Yes

5

Making Complaints

Section 1:Consumer Switching Behaviour

6

Making Complaints

2825292626242223211919181612151213121491214611

54

5555

585859

82

8279

59

6164

6969

71

58

6260

515153

67

6668

Extent of Switching Providers – I – Primary & Secondary

(Base: All aged 15-74 – 1,000)

Mobile telephone provider

Car insurance provider

Main grocery shop

Top-up grocery shop

Fixed/landline telephone provider

Bank/financial institution who offers current a/c service

Home insurance provider

Broadband internet access provider

PRIMARY

SECONDARY

Switching Providers YesNo

(+4%)

Wave 3 2009Wave 2 2008Wave 1 2008

(+5%)

(+8%)

7

Making Complaints

5666356557559753223224

1505349

798081

545955

534951

676464

747677

535952

373735

616159

Extent of Switching Providers – II – Tertiary

(Base: All aged 15-74 – 1,000)

Health insurance

Gym membership

Credit card provider

Savings/investments provider

TV service provider e.g. Sky, ntl

Mortgage credit provider

Provider of credit (more than 1 year but exc. mortgage)

Electricity supply service

Gas supply service

Switching Providers YesNo

TERTIARY

Wave 3 2009Wave 2 2008Wave 1 2008

(+4%)

8

Making Complaints

Reasons for Switching

(Base: All aged 15-74 who switched providers – 557)

82

14

15

14

10

8

6

2

80

14

14

10

10

6

3

3

I switched to get a better deal because my other provider was too expensive

I switched due to poor customer service

I switched due to recommendations from friends/family members

I switched due to poor coverage/poor reception

I switched for convenience

I switched due to problems I was having with my provider

Other

Don't know/no particular reason

%Switching Providers

Wave 3 2009Wave 2 2008

9

Making Complaints

Reason for Switching Providers – I

Recommended better provider by peers/friends/ colleaguesSaw a TV ad which prompted me to switch

Read an article in the newspaper

Saw a report on a TV programmePrefer to keep switching all the time to be sure of getting the best deals

Other

Switching Providers

47

23

9

4

15

15

43

17

8

5

15

12

43

36

3

5

6

9

50

21

6

1

20

14

44

26

3

2

10

14

48

36

6

7

5

60

17

3

2

18

12

51

13

5

2

22

9

61

25

2

1

8

8

Fixed line phone

Broadband provider

Mobile provider

% %%

(Base: All who switched providers for each service)

(Base: 162 (16%)) (Base: 144 (14%))(Base: 275 (28%))

–

Wave 3 2009Wave 2 2008Wave 1 2008

43

14

8

3

33

10

45

9

7

2

30

7

47

21

5

2

16

8

Car Insurance

%(Base: 110 (11%))

10

Making Complaints

Reason for Switching Providers – II

Switching Providers

37

15

7

3

37

13

46

11

6

1

32

4

43

16

7

12

13

Home Insurance

%

(Base: All who switched providers for each service)

Recommended better provider by peers/friends/colleagues

Saw a TV ad which prompted me to switch

Read an article in the newspaper

Saw a report on a TV programme

Prefer to keep switching all the time to be sure of getting the best deals

Other

(Base: 140 (14%))

Benchmark 2007

Question not asked in

Benchmark survey

-

53

13

8

4

12

17

53

9

11

4

9

15

58

18

6

3

8

9

Switched current a/c bank

%(Base: 120 (12%))

Wave 3 2009Wave 2 2008Wave 1 2008

11

Making Complaints

Reason for Switching Providers – III

Switching Providers

40

11

8

1

36

16

30

7

4

1

41

17

42

13

9

1

28

9

36

9

6

1

36

19

29

5

4

2

41

20

42

7

6

2

29

12

Main Grocery Shop

Top-up Grocery Shop

% %

(Base: All who switched providers for each service)

Recommended better provider by peers/friends/colleagues

Saw a TV ad which prompted me to switch

Read an article in the newspaper

Saw a report on a TV programme

Prefer to keep switching all the time to be sure of getting the best deals

Other

(Base: 218 – (22%)) (Base: 191 – (19%))

Benchmark 2007

Question not asked in

Benchmark survey

(+7%)(+10%)

Wave 3 2009Wave 2 2008Wave 1 2008

12

Making Complaints

1 16 5

10 18

30

50 45

1 1

32

Experience of the Switching Process

(Base: All who have switched providers - 557)

%Very Difficult (5)

Somewhat Difficult (4)

Neither/Nor (3)

Somewhat Easy (2)

Very Easy (1)

Not Stated

75% easy82% easy

%

Wave 3 2009 Wave 2 2008

13

Making Complaints30

39

25

51

Service Receiving with New Provider

(Base: All who have switched service provider – 557)

%

Much better service (5)

* New Question

–

Better service (4)

The same/no difference (3)

Worse service (2)Much worse service (1)

Don’t know

69%

Mean 4.0

14

Making Complaints

Whether Saved Money Due to Switching

(Base: All who have switched providers – 557)

82%

10%8%

Yes

No

Did you save money by switching providers?

# New Question

%

Don't know

15

Making Complaints

35

7

7

2

1

17

28

9

3

1

1

35

9

4

1

2

Reason for Not Switching – I

Current supplier offers best value for money

The time and money needed to switch outweighed the benefits

It is too difficult to find out which supplier provides the best value for money

Cannot switch due to limitations

There is no convenient alternative provider

Quality/level of service provided by current provider

Not Switching

21

5

3

2

2

11

25

5

3

1

1

28

7

3

1

2

44

6

2

3

17

43

8

4

1

1

60

8

4

1

1

33

10

10

3

3

18

36

10

4

1

1

49

12

6

2

3

Broadband provider

Mobile provider

Current A/C bank

% %%

(Base: All who switched providers for each service)

(Base: 856) (Base: 725)(Base: 880)

–

Wave 3 2009Wave 2 2008Wave 1 2008

Fixed phone line

%(Base: 838)

Benchmark 2007

Question not asked in

Benchmark survey

n/an/a

n/an/a

n/an/a

n/an/a

16

Making Complaints

Reason for Not Switching – II

Not Switching

38

7

7

2

1

19

21

5

4

1

1

32

6

4

1

1

Health Insurance

%

(Base: All who switched providers for each service)

Current supplier offers best value for money

The time and money needed to switch outweighed the benefits

It is too difficult to find out which supplier provides the best value for money

Cannot switch due to limitations

There is no convenient alternative provider

Quality/level of service provided by current provider

(Base: 948)

43

8

3

1

13

33

7

3

1

1

40

6

4

7

1

Car Insurance

%(Base: 741)

Wave 3 2009Wave 2 2008Wave 1 2008

44

7

3

2

16

31

6

3

1

1

36

6

3

2

1

Home Insurance

%(Base: 858)

––

n/an/a

n/an/a

n/an/a

Benchmark 2007

Question not asked in

Benchmark survey

17

Making Complaints

Reason for Not Switching – III

Not Switching

42

6

3

3

17

34

7

4

3

40

6

5

3

40

6

4

7

16

35

9

4

5

44

6

5

7

Main Grocery Shop

Top-up Grocery Shop

% %

(Base: All who switched providers for each service)

Current supplier offers the best value for money

The time and money needed to switch outweighed the benefits

It is too difficult to find out which supplier provides the best value for money

Cannot switch due to limitations

There is no convenient alternative provider

Quality/level of service provided by current provider

(Base: 782) (Base: 808)

Benchmark 2007

Question not asked in

Benchmark survey

Wave 3 2009Wave 2 2008Wave 1 2008

–––

–––

n/an/a

n/an/a

18

Making Complaints

121024

161522

131622

131517

12311

10916

6251

59

657667

587274

6552

68

48

5860

8265

79

Future Likelihood of Switching Providers – Primary

(Base: All aged 15-74 – 1,000)

Mobile telephone provider

Car insurance provider

Main grocery shop

Top-up grocery shop

Electricity Supply Service

Home Insurance Provider

Switching Providers YesNo

Wave 3 2009Wave 2 2008Wave 1 2008

(+9%)

19

Making Complaints

761585137513651155115411641062

7375

646354

5343

57

495956

5947

57

6956

65

728482

Future Likelihood of Switching Providers – Secondary

(Base: All aged 15-74 – 1,000)

Bank/financial institution who offers current a/c service

Fixed/landline telephone provider

Broadband internet access provider

Health insurance

TV service provider e.g. Sky, ntl

Credit card provider

Savings/investments provider

Switching Providers YesNo

Wave 3 2009Wave 2 2008Wave 1 2008