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1 National Consumer Agency Consumer Switching Behaviour Market Research Findings August 2009 Research Conducted by
2 Table of Contents 2 A. Research Background & Methodology B. Profile of Sample KEY FINDINGS: SECTION 1: Consumer Switching Behaviour
3 B. Profile of Sample I 3 (Base: All aged ,000) AB MAIN GROCERY SHOPPER Male Married C1 Yes No Living as Married C2 Female Single D Wid/Div/ Sep E F50+ F50-
4 B. Profile of Sample II Internet Use 4 () = figures from wave 2 08 (Base: All Respondents 1,000) USE INTERNET EVER PURCHASED ONLINE BANKING ONLINE (Base: All Internet Users - 650) (Base: All Internet Users - 650) No Yes No Yes No (36) (34) (64) (58) (42) (66) Yes Yes Yes Yes Male Female Male Female Male Female
5 5 Section 1: Consumer Switching Behaviour
6 Extent of Switching Providers I Primary & Secondary 6 Switching Providers Mobile telephone provider (Base: All aged ,000) No Yes Car insurance provider Main grocery shop Top-up grocery shop Fixed/landline telephone provider (+4) PRIMARY Bank/financial institution who offers current a/c service Home insurance provider Broadband internet access provider (+5) (+8) SECONDARY
7 Extent of Switching Providers II Tertiary 7 Switching Providers Health insurance (Base: All aged ,000) No Yes Gym membership Credit card provider Savings/investments provider TV service provider e.g. Sky, ntl TERTIARY Mortgage credit provider Provider of credit (more than 1 year but exc. mortgage) Electricity supply service (+4) Gas supply service
8 Reasons for Switching 8 Switching Providers I switched to get a better deal because my other provider was too expensive (Base: All aged who switched providers 557) 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
9 Reason for Switching Providers I 9 Switching Providers (Base: All who switched providers for each service) Recommended better provider by peers/friends/ colleagues Saw a TV ad which prompted me to switch 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 Mobile provider (Base: 275 (28)) Car Insurance (Base: 110 (11)) Fixed line phone Broadband provider (Base: 162 (16)) (Base: 144 (14))
10 Reason for Switching Providers II 10 Switching Providers Recommended better provider by peers/friends/colleagues Saw a TV ad which prompted me to switch 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 (Base: All who switched providers for each service) Home Insurance (Base: 140 (14)) - Switched current a/c bank (Base: 120 (12)) Benchmark 2007 Question not asked in Benchmark survey Other
11 Reason for Switching Providers III 11 Switching Providers Recommended better provider by peers/friends/colleagues Saw a TV ad which prompted me to switch 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 (Base: All who switched providers for each service) Main Grocery Shop Top-up Grocery Shop (Base: 218 (22)) (Base: 191 (19)) (+10) (+7) Benchmark 2007 Question not asked in Benchmark survey
12 Experience of the Switching Process 12 (Base: All who have switched providers - 557) Very Difficult (5) Somewhat Difficult (4) Neither/Nor (3) Somewhat Easy (2) 82 easy 75 easy Very Easy (1) Not Stated
13 Service Receiving with New Provider 13 (Base: All who have switched service provider 557) Much better service (5) 69 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 14 (Base: All who have switched providers 557) Did you save money by switching providers? No Don't know Yes # New Question
15 Reason for Not Switching I 15 Not Switching (Base: All who switched providers for each service) Current supplier offers 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 Cannot switch due to limitations Current A/ C bank (Base: 880) Fixed phone line (Base: 838) Broadband provider Mobile provider (Base: 856) (Base: 725) There is no convenient alternative provider Quality/level of service provided by current provider Benchmark 2007 Question not asked in Benchmark survey
16 Reason for Not Switching II 16 Not Switching Current supplier offers best value for money (Base: All who switched providers for each service) Health Insurance (Base: 948) Car Insurance (Base: 741) Home Insurance (Base: 858) 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 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
17 Reason for Not Switching III 17 Not Switching 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 Cannot switch due to limitations There is no convenient alternative provider Quality/level of service provided by current provider (Base: All who switched providers for each service) Main Grocery Shop Top-up Grocery Shop (Base: 782) (Base: 808) Benchmark 2007 Question not asked in Benchmark survey
18 Future Likelihood of Switching Providers Primary 18 Switching Providers (Base: All aged ,000) No Yes Mobile telephone provider Car insurance provider Main grocery shop Top-up grocery shop Electricity Supply Service (+9) Home Insurance Provider
19 19 Switching Providers Bank/financial institution who offers current a/c service Future Likelihood of Switching Providers Secondary (Base: All aged ,000) No Yes Fixed/landline telephone provider Broadband internet access provider Health insurance TV service provider e.g. Sky, ntl Credit card provider Savings/investments provider
20 Future Likelihood of Switching Providers - Tertiary 20 Switching Providers (Base: All aged ,000) No Yes Provider of credit (more than 1 year but exc. mortgage) Gym membership Gas supply service Mortgage credit provider
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