National Consumer Agency Market Research Findings Consumer Switching

National Consumer Agency Market Research Findings: Consumer Switching Behaviour September 2011 Market Research Conducted by

Table of Contents 2 § Key Findings § Consumer Switching Behaviour Making and Complaints § Research Background Methodology § Profile of Sample www. nca. ie

3 Key Findings Making Complaints www. nca. ie

Key Findings - I 4 • In the past year consumers are most likely to have switched providers for • car insurance (22%) • electricity (17%) • main grocery shop (17%) • Within the past three years almost 1 in 4 (24%) consumers have switched car insurance provider with 2 in 5 (41%) of those switching more than once • The highest incidence of multiple switching is found in the grocery sector, both main grocery (49%) and top-up grocery (57%) • Overall, across all categories, 79% of consumers, who had switched service providers in the last twelve months, said they had saved money as a result; with the highest incidence in the car insurance (88%) and home insurance (86%) sectors Making Complaints www. nca. ie

Key Findings - II 5 • The main reason consumers gave for not switching product/service provider across all sectors is due to being happy with their current provider • 92% of those who switched found process easy • 55% of consumers who have switched service provider feel that they are receiving a better service • In the next year consumers are most likely to switch providers for • car insurance (19%) • home insurance (12%) • main grocery shop (11%) Making Complaints www. nca. ie

6 Consumer Switching Behaviour Making Complaints www. nca. ie

Extent of Switching Providers within the Past 12 Months (Base: All holders/purchasers of products/services) 7 Switching Providers Primary May/June ‘ 11 Secondary Yes Car Insurance Electricity supply service Tertiary Yes Fixed line telephone provider Making Complaints Yes Gym membership Home insurance provider Savings/investment provider Mobile telephone provider Heath insurance provider Credit card provider Main grocery shop Gas supply service Provider of credit (more than 1 year but excluding mortgage) Top up grocery shop Bank financial institution with current A/C service Mortgage credit provider Broadband/internet access provider TV service provider www. nca. ie

Whether or Not Saved Money Due to Switching Provider (Base: All who have switched providers in the past 12 months) 8 Main Grocery Shop 76% Electricity supply service 71% www. nca. ie Home Insurance Provider 86% Car Insurance Provider 88% Making Complaints Mobile Telephone Provider 76% Fixed/Landline Telephone Broadband/Internet Access Top up Grocery Shop Provider 72% 67%

Switching Behaviour – Primary (Base: All aged 15 -74 – 1, 000) 9 Within the Past Year Within the Past 3 Years % 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 www. nca. ie Making Complaints Incidence of Switching More Than Once %

Switching Behaviour – Secondary (Base: All aged 15 -74 – 1, 000) 10 Within the Past Year Within the Past 3 Years % Incidence of Switching More Than Once % Gym membership TV service provider Bank/financial institution Credit card provider Making– Complaints Savings/investments provider Mortgage credit provider – Provider of credit longer than one year excluding mortgage loans – www. nca. ie –

Reasons for Not Switching Provider Within Past 3 Years – I (Base: All that have not switched provider within the past 3 years) 11 Bank/Financial Institution Fixed landline/ Telephone Provider Broadband Provider Happy with Current Provider No Better Deal Available Didn’t Want the Hassle Not Worth my While No Alternative Available % % % Making Complaints Mobile Telephone Provider Health Insurance Provider – Car Insurance Provider – Home Insurance Provider – Electricity Service Gas Service www. nca. ie – Don’t Know %

Reasons for Not Switching Provider Within Past 3 Years – II (Base: All that have not switched provider within the past 3 years) 12 Mortgage Credit Provider Happy with Current Provider No Better Deal Available Didn’t Want the Hassle Not Worth my While No Alternative Available % % % TV Service Provider Gym Membership Credit Card Provider Making Complaints Savings/Investments Provider of Credit Longer than One Year Main Grocery Shop – Top-Up Grocery Shop – www. nca. ie Don’t Know %

Experience of the Switching Process (Base: All who have switched providers in the past 12 months – 429) 13 May/June 2011 Nov/Dec 2010 % % Making Complaints Very easy (5) 92% 88% Somewhat easy (4) Neither/Nor (3) Somewhat difficult (2) Very difficult (1) www. nca. ie –

Service Receiving with New Provider (Base: All who have switched providers in the past 12 months – 429) 14 Much worse (1) (2) (4) Much better (5) 55% June 2011 November/December 2010 – June 2010 Making Complaints November/December 2009 – June 2009 – www. nca. ie 59% 61% 56% 69% The same/ Don’t know Mean Score 42 3. 8 39 3. 9 36 4. 0 40 3. 9 30 4. 0

Future Likelihood of Switching Providers within the Next 12 Months (Base: All aged 15 -74 – 1, 000) 15 May/June ‘ 11 Nov/Dec ‘ 10 June 2010 Switching Providers Primary Secondary Yes Car Insurance Home insurance provider Tertiary Top-up grocery shop Making Complaints Yes Credit card provider Broadband internet access provider Gas supply service Mobile telephone provider Health insurance Savings/investments provider Electricity supply service Fixed/landline telephone provider Provider of credit (more than 1 year but excluding mortgage) TV service provider e. g. Sky/NTL Mortgage credit provider Bank financial institution who offers a current A/C service Main grocery shop www. nca. ie (-5%) Gym membership

16 Research Background Making Complaints and Methodology www. nca. ie

Research Background and Methodology 17 Nov/Dec 2007 Aug 2008 Nov/Dec 2008 May/June 2009 Benchmark Wave 1 Wave 2 Wave 3 Nov/Dec 2009 Wave 4 June 2010 Nov/December 2010 May/June 2011 Wave 5 Wave 6 Wave 7 Making Complaints Current Wave Ø The research was conducted by means of face-to-face interviewing with 1, 000 people between the ages of 15 -74. Ø To ensure that the data is nationally representative, quotas were applied on the basis of age, gender and social class. Ø Interviewing was conducted over a four week period in May/June 2011. www. nca. ie

Profile of Sample – I (Base: All aged 15 -74 – 1, 000) 18 % % % MAIN GROCERY SHOPPER % 15 -24 Dublin Male ABC 1 F 50+ 25 -34 Making Complaints Rest of Leinster 35 -44 45 -54 Munster Female C 2 DE F 5055+ www. nca. ie Conn/ Ulster Yes No