Canny Consumers Are consumers standing up for their

Canny Consumers? Are consumers standing up for their rights? www. consumercouncil. org. uk 1

Contents • • • Introduction Consumer proficiency Consumers’ awareness of their rights Consumers’ confidence in expressing their rights Consumer advice Shopping online Consumer buying behaviour Quiz Conclusion www. consumercouncil. org. uk 2

Introduction www. consumercouncil. org. uk 3

What the Canny Consumers? report is about and its aim? The research looks at the knowledge, awareness and behaviours of consumers to determine current levels of consumer proficiency in Northern Ireland. The findings from the report are used to guide future work for the Consumer Council aimed at: • Raising consumers’ skills and confidence to make informed purchasing decisions; • Protecting their hard-earned cash; and • Getting the high standard of customer care they deserve. www. consumercouncil. org. uk 4

How was the research conducted? Face-to-Face Survey A market research company carried out a survey designed by the Consumer Council which was undertaken with 1, 039 consumers at 50 sampling points, randomly selected across Northern Ireland’s wards, ensuring coverage across each of the 26 District Councils. Consumer Panels The Consumer Council facilitated three consumer panels in Lisburn, Newry and Strabane. Participants were recruited by an external company and chosen to be representative of the Northern Ireland population in terms of its socioeconomic groups, age and gender. 5 www. consumercouncil. org. uk

Activity In groups: - Identify who is a ‘Consumer’? - Define a ‘Canny Consumer’ www. consumercouncil. org. uk 6

Consumer Proficiency www. consumercouncil. org. uk 7

What is consumer proficiency? A term used to identify and describe an individual’s: • Knowledge about their consumer rights; • Confidence to speak up when things go wrong with goods or services they have bought; • Awareness of where to go for expert consumer help and advice; and • Ability to take reasonable steps to protect themselves from financial loss due to poorly informed purchases, unfair trading practices and scams. www. consumercouncil. org. uk 8

The importance of being a canny consumer An informed and confident consumer can save money and inconvenience by avoiding problems with goods or services and has the ability to resolve them quickly, if and when problems do arise. This has the potential to drive up business standards; rewarding those businesses that get it right and making it harder for less scrupulous or less customer-focused business. www. consumercouncil. org. uk 9

Activity Complete Student Questionnaire Class discussion: What do you understand by the term ‘Consumer Rights’? Group work: On a spider diagram, identify the rights and responsibilities associated with being an effective consumer. www. consumercouncil. org. uk 10

Defining the term ‘Consumer Rights’ “When you pay money – what rights you hold on a product. ” “It’s about entering into contracts. ” (Male, Newry) (Male, Lisburn) Consumer panel responses “It’s about the rights that you have when you buy something – if they’re faulty. ” “When you pay for a service, you expect to get what you pay for. ” (Female, Newry) (Female, Lisburn) www. consumercouncil. org. uk 11

Rights and responsibilities of an effective consumer www. consumercouncil. org. uk 12

Consumers’ Awareness of Rights www. consumercouncil. org. uk 13

How well informed do consumers feel about their rights? Over half of participants felt ‘very’ (9 per cent) or ‘fairly well informed’ (43 per cent) about their rights as a consumer. This is a 17 per cent drop since 2007. www. consumercouncil. org. uk 14

Activity Perception versus reality Class Answer True or False to the following statements: www. consumercouncil. org. uk 15

True or False: Consumer rights statements It is the responsibility of the retailer, rather than the manufacturer to respond to your complaint about faulty goods. As long as you have a receipt, you are legally entitled to a refund if you return non faulty goods. If you bought a TV for £ 200 using your credit card, you could claim compensation from the card company if the TV develops a fault. You can return a faulty item even if it has been used. Shops are legally entitled to display “no refund” signs. If a computer develops a fault after 18 months, the shop doesn’t have to do anything if it is outside the warranty period. www. consumercouncil. org. uk 16

Outcomes of consumer rights statements Consumer rights statement True False Don’t know It is the responsibility of the retailer, rather than the manufacturer to respond to your complaint about faulty goods. 82% 17% 1% As long as you have a receipt, you are legally entitled to a refund if you return non faulty goods. 67 % 32% 1% If you bought a TV for £ 200 using your credit card, you could 46% claim compensation from the card company if the TV develops a fault. 50% 4% You can return a faulty item even if it has been used. 90% 9% 1% Shops are legally entitled to display “no refund” signs. 55% 43% 2% If a computer develops a fault after 18 months, the shop doesn’t have to do anything if it is outside the warranty period. 68% 30% 2% N= 1, 039 www. consumercouncil. org. uk 17

Consumers’ confidence in expressing their rights www. consumercouncil. org. uk 18

Consumers’ confidence in expressing their rights Consumers must have confidence as well as knowledge of their rights to ensure they speak up about faulty goods or poor service. Between 2003 to 2007, consumers’ confidence in expressing their rights rose significantly by 36 per cent. In 2011 there was a marginal decrease of 4 per cent. 19

Which consumers are the most/least confident? Most Confident Least Confident www. consumercouncil. org. uk 20

Activity In groups: Make a list of the barriers that would prevent consumers from not speaking up and expressing their rights (i. e. being effective). www. consumercouncil. org. uk 21

Reasons why consumers who had a reason to complain did not do so www. consumercouncil. org. uk 22

Consumer Advice www. consumercouncil. org. uk 23

Sources of expert consumer advice www. consumercouncil. org. uk 24

Sources of general consumer advice www. consumercouncil. org. uk 25

A-Z Consumer Advice Handbook This handbook provides a quick reference for consumers, organisations, staff and volunteers involved in advocacy, advice or information work. It also provides information on general consumer rights and how to complain effectively. A wide range of consumer organisations are also listed to provide more specialist advice. www. consumercouncil. org. uk 26

Activity Logos www. consumercouncil. org. uk 27

Shopping Online www. consumercouncil. org. uk 28

Levels of online shopping Online shopping continues to rise amongst Northern Ireland consumers as the proportion of consumers who shop online daily or weekly has risen from 4 per cent in 2007 to 13 per cent in 2011. Levels of online shopping are likely to have risen as a result of increased broadband connection and greater levels of internet access. 29

Who shops online? Highest levels Lowest levels www. consumercouncil. org. uk 30

Activity Class Discussion: - Why do more people shop online? - What causes some people not to? www. consumercouncil. org. uk 31

Online Shopping Rights Given the increase in online shoppers, it’s more important than ever to raise consumers’ awareness of their rights. In December 2011, it was estimated that online scams were costing shoppers £ 100 million a year. The ‘Online Shopping Tips’ leaflet identifies how consumers can shop safely on the internet in order to protect themselves from scams and other pitfalls. www. consumercouncil. org. uk 32

Consumer Buying Behaviour www. consumercouncil. org. uk 33

Consumer buying behaviour prior to making a big/expensive purchase www. consumercouncil. org. uk 34

Has the economic downturn changed consumers purchasing behaviour? Just under two-thirds (64 per cent) of consumers suggested that, since the economic downturn, they had changed their consumer shopping behaviour, whilst 35 per cent stated they were continuing to purchase in the same manner, regardless of the economic downturn. www. consumercouncil. org. uk 35

What consumers said… “I use the computer more for price comparison websites. Everyone is looking for a bargain. ” (Female, Lisburn) Consumer panel responses “If you get a bargain you’re sharing (the source) with everybody because you know everybody is in the same boat. ” (Female, Strabane) “I’m more likely to shop around for better prices – e. g. car insurance. It is handier to stay with the same company, but you have to shop around. ” (Male, Lisburn) 36

Quiz www. consumercouncil. org. uk 37

Question One What is the report about and how was the research carried out? The research looks at the knowledge, awareness and behaviours of consumers to determine current levels of consumer proficiency in Northern Ireland. It was carried out by face to face surveys and consumer panels. www. consumercouncil. org. uk 38

Question Two What is consumer proficiency? A term used to identify and describe an individual's: • Knowledge about their consumer rights; • Confidence to speak up when things go wrong; • Awareness of where to go for expert consumer help and advice; and • Ability to take reasonable steps to protect themselves from financial loss due to poorly informed purchases, unfair trading practices and scams. www. consumercouncil. org. uk 39

Question Three Why is it important to be a Canny Consumer? An informed and confident consumer can: • save money; • avoid inconvenience; and • has the ability to resolve problems quickly. This has the potential to: • drive up business standards; • reward those businesses that get it right; and • make it harder for less scrupulous or less customer focused businesses. www. consumercouncil. org. uk 40

Question Four What are the barriers that prevent people from complaining? • • • Unsure of consumer rights Couldn’t be bothered with the hassle or are too busy Thought it would be a waste of time Too embarrassed to complain Unable to access a source of advice www. consumercouncil. org. uk 41

Question Five Name two organisations that would provide advice regarding mis-selling. www. consumercouncil. org. uk 42

Question Six Which consumers are the most/least confident in expressing their rights? Most Confident Age group: 55 -64 and 65+ Socio-economic group: AB = Upper/Middle class, managerial, administrative or professional. Least Confident Age group: 25 -34 Socio-economic group: DE = Working class, partly skilled workers and those at the lowest level of subsistence, unskilled labour. 43

Question Seven Who shopped online the most and least? The Most Age group: 25 -34 Socio-economic group: AB = Upper/Middle class, managerial, administrative or professional. The Least Age group: 65+ Socio-economic group: DE = Working class, partly skilled workers and those at the lowest level of subsistence, unskilled labour. 44

Question Eight Has the economic down turn affected consumers shopping behaviour? If so, how? Yes. • More consumers are using price comparison websites; • Bargains are being shared by word of mouth; and • Consumers are shopping around more to get a better deal. www. consumercouncil. org. uk 45

Conclusion www. consumercouncil. org. uk 46

Report Findings Consumer skills and confidence levels have improved since 1999 when the Consumer Council first started measuring proficiency levels. However, the same findings also indicate that there is still much more to be done. Key groups including those living on a low income, older and younger consumers, lack awareness of their rights and don’t know where to go for consumer advice. There is a growing number of online shoppers. Whilst they benefit from choice and the ability to shop around more effectively, they are at risk if they fail to take steps to protect themselves against some common pitfalls. 47

Are Consumers Canny? Are consumers standing up for their rights? 48