National Consumer Agency

Market Research Findings:Consumer Experiences with Direct Selling

August 2011Market Research Conducted by

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Key Findings

Section 1: Door-to-Door Selling

Section 2: Telephone Sales

Research Background and Methodology

Profile of Sample

Table of Contents

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Key Findings

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Key Findings

Door-to-Door Selling Telephone Sales

Experienced in the past 12 months% of all consumers

41% 24%

Most commonly contacted by

Energy suppliers79% received calls – of this 30% signed up

Telecommunications76% received calls – of this 12% signed up

2nd most common Telecommunications43% received calls – of this 18% signed up

Energy suppliers40% received calls – of this 10% signed up

Of those who signed up - informed of right to cancel purchase

57% 42%

Of those who signed up - felt pressurised into signing up

21% 20%

Direct Selling

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Section 1: Door-to-Door Selling

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Experience of Door-to-Door Selling

34%Yes

35% Yes

(Base: All aged 15-74 – 1,000)

%%

Experienced Somebody Trying to Sell You a Product/Service

Experienced Somebody Trying to Get You to Switch from Current Provider

Higher amongstLiving in Dublin 43%35-54 Year olds 42%

Higher amongstLiving in Dublin 41%45-54 Year olds 42%Part-time employed 41%

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Energy suppliers

Telecommunications

TV Service

Home Improvements, Gardening etc.

Catalogue sales

Monitored home security system

Others*

Categories of Product/Service Sold and Incidence of Switching/Signing up

* All others 1% or less* Caution small base

%

79

43

33

18

18

12

5

(Base: All who experienced door-to-door selling in past 12 months - 405)

% Purchase/Switched

30

18

11

9

9

6

*

*

*

*

*

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11 4

46

17

28

32

31

7168

Was informed of my right to cancel any purchase

Received written information on product/service before signing up

Information Provided at the Door

%

57

39

(Base: All who experienced door-to-door selling in past 12 months - 405)

Strongly Agree (5)

57%

21%

%

Felt Pressurised into Signing up/Taking

out Product/Service

%

Agree (4)

Neither/ Nor (3)

Strongly Disagree (1)

Disagree (2)

2.63.5Mean Score:

Offer was Fully Explained Before

Signing Up

%

47%

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Cancellation Form & Expectations

84%

Yes

29%

Yes

(Base: All who signed up to a product/service at the door - 130)

%%

Receipt of cancellation form upon sign up/switch?

Product/service Received Correspond to Information given by Sales Person?

Higher amongst:35-44 Year olds 34%Knowledgeable regards consumer rights 33%Protected regards consumer rights 33%Confident regards consumer rights 32%

Higher amongstABC1/F50+ 91%Females 88%Knowledgeable regards consumer rights 88%Protected regards consumer rights 89%

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Section 2: Telephone Sales

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Experience of Telephone Selling

20%No Yes21%

No Yes

(Base: All aged 15-74 – 1,000)

%%

Experienced Somebody Trying to Sell You a Product/Service

Experienced Somebody Trying to Get You to Switch from Current Provider

Higher amongst:

45-54 Year olds 29%

Higher amongst:

45-54 Year olds 28%

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* All others 1% or less* Caution small base

Telecommunications

Energy suppliers

TV Service

Home Improvements, Gardening etc.

Monitored home security system

Catalogue sales

Others*

Categories of Product/Service Sold over the Phone and Incidence of Switching/Signing up

%

76

40

22

10

6

6

4

(Base: All who experienced direct phone selling in past 12 months - 242)

% Purchase/Switched

12

10

8

*

*

*

*

*

*

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Was informed of my right to cancel any purchase

Information Provided Over the Phone

%

42

(Base: All who experienced direct phone selling in past 12 months - 242)

Strongly Agree (5) 5 3

38

17

40

39

27

8 149

43%

20%

%

Felt Pressurised into Signing up/Taking

out Product/Service

%

Agree (4)

Neither/ Nor (3)

Strongly Disagree (1)

Disagree (2)

2.73.3Mean Score:

Offer was Fully Explained Before

Signing Up

41%

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Research Background and Methodology

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The research was conducted by means of face-to-face interviewing with 1,000 people between the ages of 15-74.

To ensure that the data is nationally representative, quotas were applied on the basis of age, gender and social class.

Interviewing was conducted over a four week period in May/June 2011.

Research Background and Methodology

Nov/Dec 2007

Aug 2008Nov/Dec

2008

Nov/Dec 2009 June 2010Nov/December

2010

Benchmark

Wave 4 Wave 5

Wave 1 Wave 2

Wave 6

Current Wave

May/June 2011

Wave 7

May/June 2009

Wave 3

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1728

4822

52

19

2816

1826

49

26

51

SEX AGE REGIONSOCIALCLASS

Profile of Sample – I

(Base: All aged 15-74 – 1,000)

Male

Female

% % % %

15-24

25-34

35-44

45-54

55+

Dublin

Rest of Leinster

Munster

Conn/ Ulster

ABC1 F50+

C2DEF50-

MAIN GROCERY SHOPPER

Yes No50%50%