National Consumer Agency

Market Research Findings:Consumer Switching Behaviour

September 2010Research Conducted by

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Making Complaints

Consumer Switching Behaviour

Research Background & Methodology

Profile of Sample

Contents

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Making Complaints

Key Findings

• To get a better deal continues to be the most influential driver of consumer switching behaviour.

• Across 17 key categories, consumers were most likely to have switched mobile telephone provider and car insurance provider. The biggest increase since the last wave is the number of consumers who have switched electricity supply service provider.

• Overall, across all categories, (excluding main and top up grocery shop which are examined in more detail in a separate report on grocery shopping) 83% of consumers, who had switched service providers in the last twelve months, said they had saved money as a result.

• Circa 4 in 5 (79%) consumers who had switched providers considered it to be an easy process relatively consistent with previous wave.

• Just over 3 in 5 (61%) consumers who have switched service provider feel that they are receiving a better service. A further 26% of consumers who have switched reported that they are receiving the same level of service.

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Making Complaints

Extent of Switching Providers – Primary(Base: All aged 15-74 – 1,000)

Mobile telephone provider

Car Insurance provider

Fixed/landline telephone provider

Main grocery shop

Electricity supply service

Broadband/internet access provider

Yes

Wave 5 2010Wave 4 2009Wave 3 2009

( ) = Wave 4 2009

Switched in last 12 months

49%(62%)

57%(64%)

45%(47%)

47%(40%)

80%(78%)

58%(55%)

27

26

17

16

15

15

21

21

11

15

8

9

28

26

16

22

4

14

Switching Providers

(+6%)

(+5%)

(+6%)

(+7%)

(+6%)

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Making Complaints

Extent of Switching Providers – Secondary(Base: All aged 15-74 – 1,000)

Bank/financial institution who offers Current A/C service

Top-up Grocery Shop

Home Insurance Provider

TV Service Provider e.g. Sky, NTL

Health Insurance Provider

Credit Card Provider

Yes

Wave 5 2010Wave 4 2009Wave 3 2009

( ) = Wave 4 2009

Switched in last 12 months

38%(34%)

44%(38%)

57%(54%)

50%(49%)

53%(61%)

38%(38%)

13

12

11

9

5

5

11

13

11

6

5

2

12

19

14

9

5

6

Switching Providers

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Making Complaints

Extent of Switching Providers – Tertiary

(Base: All aged 15-74 – 1,000)

Gym membership

Savings/investment provider

Gas supply service

Provider of credit (more than 1 year but excluding mortgage)

Mortgage Credit provider

Yes Wave 5 2010Wave 4 2009Wave 3 2009

( ) = Wave 4 2009

Switched in last 12 months

37%(52%)

29%(34%)

61%(57%)

8%(37%)

14%(50%)

5

4

2

2

1

3

4

1

2

1

6

7

1

3

3

Switching Providers

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Making Complaints

Whether or Not Saved Money Due to Switching Provider

(Base: All who have switched providers in the past 12 months)

Electricity supply service 92%

Home Insurance Provider 88%

Mobile Telephone

Provider 76%

Car Insurance Provider 84%

Broadband/Internet Access Provider 76%

TV Service Provider 74%

Fixed/Landline Telephone Provider

63%

Bank/Financial Institution 66%

Across all categories, (excluding main and top up grocery shop which are examined in more detail in a separate report on grocery shopping) 83% of consumers, who had switched service providers in the last twelve months, said they had

saved money as a result.

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Making Complaints

Reasons for Switching

(Base: All aged 15-74 who switched providers – 562)

78

13

8

11

5

5

2

2

75

11

11

10

7

5

2

1

82

14

15

14

10

8

6

2

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

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

%Switching Providers

Wave 5 2010Wave 4 2009Wave 3 2009

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Making Complaints

1 1 15 3 6 5

15 16 11 19

29 3230

50 52 50 45

29

Experience of the Switching Process(Base: All who have switched providers - 562)

%Very Difficult (5)

Somewhat Difficult (4)

Neither/Nor /don’t know(3)

Somewhat Easy (2)

Very Easy (1)

75%82%

%

Wave 3 2009 Wave 2 2008

81%

%

Wave 4 2009

–%

Wave 5 2010

79%

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Making Complaints

30 25 30

3131

39

2623

254

11

1017

5

2

Service Receiving with New Provider

(Base: All who have switched service provider – 562)

Much better service (5)

–

Better service (4)

The same/no difference (3)

Worse service (2)Much worse service (1)

Don’t know

69%

Mean 4.0

%

Wave 3 2009

%

Wave 4 2009

3.9

56%

–

%

Wave 5 2010

61%

4.0

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Making Complaints

Future Likelihood of Switching Providers – Primary

(Base: All aged 15-74 – 1,000)

Switching Providers YesWave 5 2010Wave 4 2009Wave 3 2009Car insurance provider

Home insurance provider

Mobile telephone provider

Main grocery shop

Top-up grocery shop

Electricity supply service

14

9

7

7

7

6

16

9

10

9

9

10

16

10

12

13

13

12

76% of those who are likely to switch provider within the

next 12 months are likely to do so in order to get a better deal as they feel their current

provider is too expensive.

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Making Complaints

Future Likelihood of Switching Providers – Secondary

(Base: All aged 15-74 – 1,000)

Switching Providers YesWave 5 2010Wave 4 2009Wave 3 2009

Bank/financial institution who offers current a/c service

Broadband internet access provider

Fixed/landline telephone provider

Health insurance

TV service provider e.g. Sky, NTL

Credit Card provider

6

5

4

4

3

3

3

6

5

5

3

2

7

7

8

6

5

5

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Making Complaints

Future Likelihood of Switching Providers – Tertiary

(Base: All aged 15-74 – 1,000)

Switching Providers Yes

Wave 5 2010Wave 4 2009Wave 3 2009

Savings/investments provider

Gym membership

Gas supply service

Provider of credit (more than 1 year but exc. Mortgage)

Mortgage credit provider

2

2

1

1

1

2

1

2

1

1

6

3

2

3

3

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Making Complaints

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

• In all, 6 comparable “Waves” of Market Research have been completed since November / December 2007.

• 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 June 2010.

Research Background and Methodology

Nov/Dec 2007 Aug 2008 Nov/Dec 2008

May/June 2009 Nov/Dec 2009 June 2010

Benchmark

Wave 3 Wave 4

Wave 1 Wave 2

Wave 5

Current Wave

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Making Complaints

20

41 41

25

47

19

37

9

16

83

204

46

10

54

SEX AGEMARITALSTATUS

SOCIALCLASS

Profile of Sample – I(Base: All aged 15-74 – 1,000)

Male

Female

% % % %15-24

25-34

35-44

45-54

55+

Married

Living as Married

Single

Wid/Div/Sep

ABC1

C2DE

F50+/F50-

MAIN GROCERY SHOPPER

Yes No46%54%

Not statedNot stated