national consumer agency market research findings: consumer switching behaviour september 2013...

National Consumer Agency

Market Research Findings:Consumer Switching Behaviour

September 2013Research Conducted by

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Key Findings

Consumer Switching Behaviour

Research Background and Methodology

Profile of Sample

Table of Contents

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Key Findings

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Key Findings

• When describing their consumer behaviour, 37% of consumers said they ‘tend to stick with the same company for products and services’. While 27% said they ‘change companies often and avail of better deals’.

• Switching provider highest for main grocery shop (26%), car insurance (23%) and top-up grocery shop (20%), followed by electricity (16%) and gas (16%). Overall the proportion who have switched at least one product or service provider is 45%.

• Majority of switchers saved money - average monthly saving resulting from switching is around €15 to €20 per sector. This tends to be higher in health insurance where the average saving reported was €42.

• The research found in the sectors surveyed that a large number of consumers have not checked to see if there is a better package/deal available to them.

• Perceived barriers to switching included “it may be more hassle than a benefit” and “don’t believe there is much difference between suppliers”.

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Consumer Switching Behaviour

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Consumers becoming more open to changing providersBase: All Adults – 1,012

4437

3335

23 27

I tend to stick to the same companies

I generally stick with the same companies but will look around

I change companies often and avail of better deals whenever I

can

Nov 2012 June 2013

% %

Highest amongst: 55+ & Farmers

Highest amongst:25-34sC2DE

Leinster & Conn/Uls

Loyal vs proactive switchers +21% +10

Highest amongst: 35-49s, ABC1s and Dublin

37% of consumers would describe their consumer behaviour as tending to stick with the same companies. 27% prefer to change companies often and avail of better deals whenever they can.

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Consumer Behaviour x Demographics Base: All Adults – 1,012

37 37 37 3827 28

42

61

2940

58

36 3644

31

35 36 35 27

3642

35

30

4429

29

4132

32

34

27 26 28 32 3630

23

8

26 29

1322

3222

34

Total%

Male%

Female%

25-34%

35-49%

50-64%

65+%

ABC1%

C2DE%

F%

Dublin%

Lein-ster%

Mun-ster%

Conn/Uls%

I tend to stick with the same companies for products &

services

I generally stick with the same companies for

products and services but will look around if I

experience poor service or price increases

I change companies often and will avail of better

deals/service whenever I can

Gender Age Social Class Region

U 24%

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Main grocery shop provider (612)

Car insurance provider (731)

Top-up grocery shop provider (629)

Electricity supply service (846)

Gas supply service (327)

Broadband internet access provider (678)

Home insurance provider (631)

Fixed / land line telephone provider (545)

Gym membership (458)

Mobile telephone provider (955)

Health insurance provider (398)

Waste / Bin service provider (716)

TV service provider e.g. Sky (665)

Bank / financial institution who offers a current account service (808)

Provider of credit longer than one year excl. mortgage loans (689)

Savings / investments provider (538)

Life insurance / Mortgage protection (409)

26

23

20

16

16

14

14

14

14

11

9

8

7

4

4

3

3

Chart Title

Consumer Switching Behaviour remains reasonably highBase: All who hold products

%

Highest incidence of switching in the last 12 months was for the main grocery shop provider (26%), followed by car insurance (23%) and top-up grocery shop (20%). Overall the proportion who have switched at least one product or

service provider is 45%.

45% have switched at least 1 product or service provider in the

past 12 months.

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High proportions of people are saving money by switchingBase: All switchers in each category

Car insurance provider (164)

Health insurance provider (35)

Home insurance provider (82)

Gas supply service (55)

Fixed / Land line telephone provider (77)

Broadband internet access (98)

Electricity supply service (137)

Waste / Bin service provider (57

Mobile telephone provider (105)

TV service provider e.g. Sky, UPC (47)

89

87

82

77

76

76

76

57

62

52

Chart Title%

SAVED MONEY WHEN SWITCHED

9 in 10 (89%) who switched their car insurance provider saved money. 87% saved when switching health insurance provider.

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Saved money when switched Average monthly savings €

Car insurance provider (145) 13.18

Health insurance provider (30) 42.78

Home insurance provider (68) 9.62

Gas supply service (43) 18.42

Fixed/ Landline telephone provider (59) 18.38

Broadband internet access (75) 15.02

Electricity supply service (104) 19.09

Waste / Bin service provider (37) 14.32

Mobile telephone provider (63) 23.46

TV service provider e.g. Sky, UPC (25) 23.91

Consumers monthly savings from switchingBase: All switchers in each category

Monthly savings made by switching car insurance on average were found to be €13. In the utilities sectors, on average consumers saved €19 when switching electricity provider and €18 when switching gas provider.

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Biggest Barrier to Switching Across ProductsBase: All who hold products

Car insurance provider

Health insurance provider

Gas supply service

Fixed/Land line telephone provider

Broad-band Internet access provider

Electricity supply service

Home insurance provider

Life Insurance/Mortgage Protection

Mobile telephone provider

TV Service provider e.g. Sky, UPC

Waste/Bin Service Provider

15

13

12

11

11

11

11

11

10

8

8

9

9

4

9

9

7

5

5

7

7

3

22

24

25

26

24

24

28

34

25

28

23

22

23

22

29

29

30

23

18

29

23

31

7

8

11

9

9

11

10

13

11

11

13

9

14

10

13

13

8

10

10

11

13

13

15

8

16

4

6

10

13

8

7

10

9

Difficulty in comparing products

Distrust of price

offered

Switching more

hassle than benefit

Don’t believe there is much

difference between suppliers

I just can’t be bothered

OtherNo

Barrier

% % % % % % %

Perceived hassle and a belief there is not much of a price difference appear to be the highest barriers to switching. Price comparisons are less of an issue, highest for car insurance (15%) and health insurance (13%).

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Biggest Barrier to Switching Across Products - 1Base: All who hold products

Switcher

Non Switcher

Switcher

Non Switcher

Switcher

Non Switcher

Switcher

Non Switcher

Switcher

Non Switcher

Switcher

Non Switcher

20

14

34

12

13

12

14

10

17

10

11

11

9

9

13

9

5

6

9

9

9

7

7

17

24

8

26

18

27

31

26

27

24

18

25

7

27

3

26

8

25

16

32

11

32

12

34

8

7

12

8

10

12

9

9

11

9

8

11

14

7

6

12

13

8

16

10

13

11

3

5

25

12

24

7

38

11

8

4

12

5

22

7


Distrust of price offered

Switching more

hassle than benefit




OtherNo

Barrier

% % % % % %

Switchers V Non Switchers



Gas supply service


Broad-band Internet access provider


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Biggest Barrier to Switching Across Products - 2Base: All who hold products

Switcher

Non Switcher

Switcher

Non Switcher

Switcher

Non Switcher

Switcher

Non Switcher

Switcher

Non Switcher

16

10

24

11

11

10

5

8

7

8

5

5

7

5

8

6

4

7

7

3

17

30

9

36

16

26

12

30

5

25

5

27

8

18

14

31

13

24

15

32

15

9

30

13

20

10

21

11

19

13

21

8

16

9

17

10

22

11

30

46

21

11

6

8

14

7

23

9

3

9


Distrust of price offered

Switching more hassle than benefit




OtherNo

Barrier

% % % % % %

Switchers V Non Switchers




TV Service provider e.g. Sky, UPC


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More recent price checking evident across full spectrum of utilitiesBase: All holders of relevant services

18

3026

36

2230

16

2718

2818

31

23

19 26

20

23

22

20

19

21

21

19

20

16

1515

13

1713

14

15

11

12

11

8

4336 33 31

37 35

50

40

50

40

52

41

Past 12 months

More than 12 months but less than 3 years

More than 3 years

Have never checked

Fixed Landline Broadband Mobile

Phone TV Service Electricity Provider

Gas Provider

W10 W11 W10 W11 W10 W11 W10 W11 W10 W11 W10 W11% % % % % % % % % % % %

W10 November 2012W11 June 2013

Increase in shopping around for better deals since previous research. Highest incidence of shopping around in broadband providers - 36% of consumers checked within the past 12 months for a better deal or package.

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Price checking also evident across insurance products especially Car InsuranceBase: All who hold products

31

56

41

2125

15

16

17

1314

13

9

12

1312

41

19

29

5349

Past 12 months

More than 12 months but less than 3 years ago

More than 3 years ago

Have never checked

*No comparable data





Waste/Bin service provider

% % % % %

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Most recent price checking - Switchers Vs Non Switchers - 1Base: All holders of relevant products

68

23

76

29

63

25

72

18

78

21

65

24

10

21

11

22

13

23

11

23

12

22

11

19

9

16

3

15

7

14

2

14

2

9

2

16

12

41

11

34

17

38

15

45

8

48

22

41

Switched Not Switched Switched Not

Switched Switched Not Switched Switched Not


Switched

% % % % % % % % % % % %


Broadband Internet access provider


Electricity supply service Gas supply service TV Service provider

e.g. Sky, UPC

Past 12 months



Have never checked

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Most recent price checking - Switchers Vs Non Switchers - 2Base: All holders of relevant products

90

46

78

3543

20

65

21

5

20

6

19 6

13

3

15

2

11

3

14

0

14

4

13

3

24

13

32

52 53

29

51



Switched% % % % % % % %

Car insurance provider*

Home insurance provider*

Life Insurance/ Mortgage Protection*


Past 12 months



Have never checked

Switchers doing most recent checking.

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Direct debit most common form of payment for bills - Switchers Vs Non SwitchersBase: All who hold products

71 6258

53

63

51

66

48 45 48 46 4439

3339

31

1618 25

28

21

30

12

32

17 1512

1937

32

37

39

5 911

8 5 810 11

1614 23

15

13

12

13

7

0

32

81

62

218 22 17 19

4

10

4

1

134

1 18

38 6

1 1 1 05

115

21

0 1 0 0 0 0 0 0 0 1 0 0 0 0 0

Direct Debit

Cash

Electronic transferCheque

Prepaid cardsOther

Broad-band Internet access

provider

Fixed/Land line

telephone provider


Gas supply service



Waste/ Bin service provider



Switched Switched Not Switched Switched Not Switched Switched Not Switched Switched Not Switched Switched Not

Switched Switched Not Switched

% % % % % % % % % % % % % % % %

*Life insurance/health insurance and TV switching base too small

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Research Background and Methodology

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The research was conducted face-to-face using CAPI interviewing with 1,012 adults 16+. To ensure that the data is nationally representative, quotas were applied on the basis of

age, gender and social class. Interviewing was conducted from 6th – 19th June 2013.

A. Research Background and Methodology

Nov/Dec 2007 Aug 2008 Nov/Dec

2008

Nov/Dec 2009 June 2010 Nov/Dec 2010

Benchmark

Wave 4 Wave 5

Wave 1 Wave 2

Wave 6

May/June 2011

Wave 7

May/June 2009

Wave 3

Nov 2011

Wave 8

June 2012

Wave 9

Nov 2012

Wave 10

June 2013

Wave 11

Profile of SampleBase: All Adults 16+ 1,012

Male

Female

16-24

25-34

35-49

50-64

65+

Dublin

Rest of Leinster

Munster

Conn/ Ulster

ABC1

C2DE

F

Working full time

Working part time

Self-employed

Un-employed

Home duties

Retired

Student

Gender%

Age%

Region%

Class%

Employment Status

%

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Access the Internet

(All Adults)%

Purchase Online(All Adults)

%

Bank Online(All Adults)

%

Profile of SampleBase: All Adults 16+ 1,012

Yes – at home

Yes – at work

No access

Yes

No

Yes

No

Social Media Sites Used(All who access the internet – 814)

%

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Mobile telephone provider Electricity supply service

Bank/financial institution who offers a current a/c serviceCar insurance provider

Waste/Bin Service ProviderBroadband Internet access provider

TV Service provider e.g. Sky, UPCTop-up grocery shop

Main grocery shopHome insurance provider

Fixed/Land line telephone providerSavings/investments provider

Credit Card providerLife Insurance/Mortgage Protection

Health insurance providerGas supply service

Mortgage credit provider Provider of credit longer than 1 year excl mortgage loans

Gym membership

9484

8072

7068

6563

6160

5252

4139

3832

2719

13

Chart Title

Incidence of Currently Holding Products or ServicesBase: All Adults – 1,012

%

national consumer agency market research findings: consumer switching behaviour september 2013...

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