National Consumer Agency Consumer Switching Behaviour Market Research
National Consumer Agency Consumer Switching Behaviour Market Research Findings August 2009 Research Conducted by
2 Table of Contents § § A. B. § KEY FINDINGS: § SECTION 1: Consumer Switching Behaviour Research Background & Methodology Profile of Sample Making Complaints
3 B. Profile of Sample – I (Base: All aged 15 -74 – 1, 000) % % % 15 -17 MAIN GROCERY SHOPPER % AB 18 -24 Married Male 25 -34 Female Making Complaints 35 -44 Living as Married 45 -54 Single 55 -64 65 -74 C 1 C 2 D E Wid/Div/ Sep F 50+ F 50 - Yes No
4 B. Profile of Sample – II – Internet Use () = figures from wave 2 ’ 08 (Base: All Respondents – 1, 000) USE INTERNET EVER PURCHASED ONLINE BANKING ONLINE (Base: All Internet Users - 650) No (36%) Yes (64%) No (34%) Yes (Base: All Internet Users - 650) No (58%) Making Complaints % Yes (66%) % Yes (42%) % Yes Male Female 15 -24 25 -34 35 -44 45 -54 55+ 55+ Yes
5 Section 1: Consumer Switching Behaviour Making Complaints
Extent of Switching Providers – I – Primary & Secondary 6 (Base: All aged 15 -74 – 1, 000) No Switching Providers Yes Mobile telephone provider PRIMARY Car insurance provider Wave 3 2009 Wave 2 2008 Wave 1 2008 Main grocery shop Top-up grocery shop Making Complaints Fixed/landline telephone provider (+4%) SECONDARY Bank/financial institution who offers current a/c service Home insurance provider Broadband internet access provider (+5%) (+8%)
7 Extent of Switching Providers – II – Tertiary (Base: All aged 15 -74 – 1, 000) Switching Providers No Yes Health insurance Gym membership Wave 3 2009 Wave 2 2008 Wave 1 2008 Credit card provider Savings/investments provider Making Complaints 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 (+4%) TERTIARY
8 Reasons for Switching (Base: All aged 15 -74 who switched providers – 557) Switching Providers % 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 Making Complaints 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 Wave 3 2009 Wave 2 2008
9 Reason for Switching Providers – I (Base: All who switched providers for each service) Switching Providers Mobile provider (Base: 275 (28%)) Recommended better provider by peers/friends/ colleagues Saw a TV ad which prompted me to switch Read an article in the newspaper % Car Insurance (Base: 110 (11%)) % Fixed line Broadband phone provider (Base: 162 (16%)) (Base: 144 (14%)) % % Making Complaints Saw a report on a TV programme Prefer to keep switching all the time to be sure of getting the best deals – Other Wave 3 2009 Wave 2 2008 Wave 1 2008
10 Reason for Switching Providers – II (Base: All who switched providers for each service) Switching Providers Home Insurance (Base: 140 (14%)) % Switched current a/c bank (Base: 120 (12%)) % Recommended better provider by peers/friends/colleagues Saw a TV ad which prompted me to switch Benchmark 2007 Making Complaints 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 Wave 3 2009 Wave 2 2008 Wave 1 2008 Question not asked in Benchmark survey
11 Reason for Switching Providers – III (Base: All who switched providers for each service) Switching Providers Main Grocery Shop (Base: 218 – (22%)) Top-up Grocery Shop (Base: 191 – (19%)) % Recommended better provider by peers/friends/colleagues % (+10%) (+7%) Saw a TV ad which prompted me to switch Making Complaints Read an article in the newspaper Benchmark 2007 Saw a report on a TV programme Question not asked in Benchmark survey Prefer to keep switching all the time to be sure of getting the best deals Other Wave 3 2009 Wave 2 2008 Wave 1 2008
12 Experience of the Switching Process (Base: All who have switched providers - 557) Wave 3 2009 Very Difficult (5) Somewhat Difficult (4) % Wave 2 2008 % Neither/Nor (3) Making Complaints Somewhat Easy (2) 82% easy Very Easy (1) Not Stated 75% easy
13 Service Receiving with New Provider (Base: All who have switched service provider – 557) % Much better service (5) 69% Making Complaints Better service (4) The same/no difference (3) * New Question Worse service (2) Much worse service (1) Don’t know Mean – 4. 0
14 Whether Saved Money Due to Switching (Base: All who have switched providers – 557) Did you save money by switching providers? % No Don't know Making Complaints Yes # New Question
15 Reason for Not Switching – I (Base: All who switched providers for each service) Not Switching Current A/C bank (Base: 880) % Fixed phone line (Base: 838) % Broadband provider (Base: 856) % Mobile provider (Base: 725) % Current supplier offers best value for money The time and money needed to switch outweighed the benefits Making Complaints 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 Benchmark 2007 Question not asked in Benchmark survey n/a n/a n/a Wave 3 2009 Wave 2 2008 Wave 1 2008 n/a
16 Reason for Not Switching – II (Base: All who switched providers for each service) Not Switching Health Insurance (Base: 948) % Car Insurance Home Insurance (Base: 741) (Base: 858) % % Current supplier offers best value for money The time and money needed to switch outweighed the benefits Making Complaints 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 n/a – – n/a n/a Benchmark 2007 Question not asked in Benchmark survey Wave 3 2009 Wave 2 2008 Wave 1 2008
17 Reason for Not Switching – III (Base: All who switched providers for each service) Not Switching Main Grocery Shop (Base: 782) Top-up Grocery Shop (Base: 808) % % 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 Making Complaints Cannot switch due to limitations – – – n/a n/a There is no convenient alternative provider Quality/level of service provided by current provider Wave 3 2009 Wave 2 2008 Wave 1 2008 Benchmark 2007 Question not asked in Benchmark survey
Future Likelihood of Switching Providers – Primary 18 (Base: All aged 15 -74 – 1, 000) Switching Providers No Yes Mobile telephone provider Wave 3 2009 Wave 2 2008 Wave 1 2008 Car insurance provider Main grocery shop Making Complaints Top-up grocery shop (+9%) Electricity Supply Service Home Insurance Provider
19 Future Likelihood of Switching Providers – Secondary (Base: All aged 15 -74 – 1, 000) Switching Providers No Yes Bank/financial institution who offers current a/c service Fixed/landline telephone provider Broadband internet access provider Health insurance Making Complaints TV service provider e. g. Sky, ntl Credit card provider Savings/investments provider Wave 3 2009 Wave 2 2008 Wave 1 2008
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