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National Consumer Agency
Consumer Switching Behaviour Market Research Findings
August 2009Research Conducted by
2
Making Complaints
A. Research Background & Methodology B. Profile of Sample
KEY FINDINGS:
SECTION 1: Consumer Switching Behaviour
Table of Contents
3
Making Complaints
B. Profile of Sample – I
(Base: All aged 15-74 – 1,000)
Male
Female
% % % %15-17
18-24
25-34
35-44
45-54
55-64
65-74
Married
Living as Married
Single
Wid/Div/Sep
AB
C1
C2
D
E
F50+F50-
MAIN GROCERY SHOPPER
Yes No
6
43
12
16
26
24
37
2617
10
2018
710
792
45
10
55
SEX AGE MARITAL STATUS SOCIAL CLASS
44%56%
4
Making Complaints
B. Profile of Sample – II – Internet Use
(Base: All Respondents – 1,000)
USE INTERNET
No Yes
EVER PURCHASED ONLINE
No Yes
BANKING ONLINE
No Yes
(Base: All Internet Users - 650) (Base: All Internet Users - 650)
65%35%71%
29% 49%51%
() = figures from wave 2 ’08
(64%)(36%) (42%)(58%)(34%)
(66%)
63
67
85
79
66
60
28
Male
Female
15-24
25-34
35-44
45-54
55+
% Yes
72
70
64
80
76
65
63
Male
Female
15-24
25-34
35-44
45-54
55+
% Yes
48
49
32
64
54
47
41
Male
Female
15-24
25-34
35-44
45-54
55+
% Yes
5
Making Complaints
Section 1:Consumer Switching Behaviour
6
Making Complaints
2825292626242223211919181612151213121491214611
54
5555
585859
82
8279
59
6164
6969
71
58
6260
515153
67
6668
Extent of Switching Providers – I – Primary & Secondary
(Base: All aged 15-74 – 1,000)
Mobile telephone provider
Car insurance provider
Main grocery shop
Top-up grocery shop
Fixed/landline telephone provider
Bank/financial institution who offers current a/c service
Home insurance provider
Broadband internet access provider
PRIMARY
SECONDARY
Switching Providers YesNo
(+4%)
Wave 3 2009Wave 2 2008Wave 1 2008
(+5%)
(+8%)
7
Making Complaints
5666356557559753223224
1505349
798081
545955
534951
676464
747677
535952
373735
616159
Extent of Switching Providers – II – Tertiary
(Base: All aged 15-74 – 1,000)
Health insurance
Gym membership
Credit card provider
Savings/investments provider
TV service provider e.g. Sky, ntl
Mortgage credit provider
Provider of credit (more than 1 year but exc. mortgage)
Electricity supply service
Gas supply service
Switching Providers YesNo
TERTIARY
Wave 3 2009Wave 2 2008Wave 1 2008
(+4%)
8
Making Complaints
Reasons for Switching
(Base: All aged 15-74 who switched providers – 557)
82
14
15
14
10
8
6
2
80
14
14
10
10
6
3
3
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 3 2009Wave 2 2008
9
Making Complaints
Reason for Switching Providers – I
Recommended better provider by peers/friends/ colleaguesSaw a TV ad which prompted me to switch
Read an article in the newspaper
Saw a report on a TV programmePrefer to keep switching all the time to be sure of getting the best deals
Other
Switching Providers
47
23
9
4
15
15
43
17
8
5
15
12
43
36
3
5
6
9
50
21
6
1
20
14
44
26
3
2
10
14
48
36
6
7
5
60
17
3
2
18
12
51
13
5
2
22
9
61
25
2
1
8
8
Fixed line phone
Broadband provider
Mobile provider
% %%
(Base: All who switched providers for each service)
(Base: 162 (16%)) (Base: 144 (14%))(Base: 275 (28%))
–
Wave 3 2009Wave 2 2008Wave 1 2008
43
14
8
3
33
10
45
9
7
2
30
7
47
21
5
2
16
8
Car Insurance
%(Base: 110 (11%))
10
Making Complaints
Reason for Switching Providers – II
Switching Providers
37
15
7
3
37
13
46
11
6
1
32
4
43
16
7
12
13
Home Insurance
%
(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
(Base: 140 (14%))
Benchmark 2007
Question not asked in
Benchmark survey
-
53
13
8
4
12
17
53
9
11
4
9
15
58
18
6
3
8
9
Switched current a/c bank
%(Base: 120 (12%))
Wave 3 2009Wave 2 2008Wave 1 2008
11
Making Complaints
Reason for Switching Providers – III
Switching Providers
40
11
8
1
36
16
30
7
4
1
41
17
42
13
9
1
28
9
36
9
6
1
36
19
29
5
4
2
41
20
42
7
6
2
29
12
Main Grocery Shop
Top-up Grocery Shop
% %
(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
(Base: 218 – (22%)) (Base: 191 – (19%))
Benchmark 2007
Question not asked in
Benchmark survey
(+7%)(+10%)
Wave 3 2009Wave 2 2008Wave 1 2008
12
Making Complaints
1 16 5
10 18
30
50 45
1 1
32
Experience of the Switching Process
(Base: All who have switched providers - 557)
%Very Difficult (5)
Somewhat Difficult (4)
Neither/Nor (3)
Somewhat Easy (2)
Very Easy (1)
Not Stated
75% easy82% easy
%
Wave 3 2009 Wave 2 2008
13
Making Complaints30
39
25
51
Service Receiving with New Provider
(Base: All who have switched service provider – 557)
%
Much better service (5)
* New Question
–
Better service (4)
The same/no difference (3)
Worse service (2)Much worse service (1)
Don’t know
69%
Mean 4.0
14
Making Complaints
Whether Saved Money Due to Switching
(Base: All who have switched providers – 557)
82%
10%8%
Yes
No
Did you save money by switching providers?
# New Question
%
Don't know
15
Making Complaints
35
7
7
2
1
17
28
9
3
1
1
35
9
4
1
2
Reason for Not Switching – I
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
There is no convenient alternative provider
Quality/level of service provided by current provider
Not Switching
21
5
3
2
2
11
25
5
3
1
1
28
7
3
1
2
44
6
2
3
17
43
8
4
1
1
60
8
4
1
1
33
10
10
3
3
18
36
10
4
1
1
49
12
6
2
3
Broadband provider
Mobile provider
Current A/C bank
% %%
(Base: All who switched providers for each service)
(Base: 856) (Base: 725)(Base: 880)
–
Wave 3 2009Wave 2 2008Wave 1 2008
Fixed phone line
%(Base: 838)
Benchmark 2007
Question not asked in
Benchmark survey
n/an/a
n/an/a
n/an/a
n/an/a
16
Making Complaints
Reason for Not Switching – II
Not Switching
38
7
7
2
1
19
21
5
4
1
1
32
6
4
1
1
Health Insurance
%
(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
There is no convenient alternative provider
Quality/level of service provided by current provider
(Base: 948)
43
8
3
1
13
33
7
3
1
1
40
6
4
7
1
Car Insurance
%(Base: 741)
Wave 3 2009Wave 2 2008Wave 1 2008
44
7
3
2
16
31
6
3
1
1
36
6
3
2
1
Home Insurance
%(Base: 858)
––
n/an/a
n/an/a
n/an/a
Benchmark 2007
Question not asked in
Benchmark survey
17
Making Complaints
Reason for Not Switching – III
Not Switching
42
6
3
3
17
34
7
4
3
40
6
5
3
40
6
4
7
16
35
9
4
5
44
6
5
7
Main Grocery Shop
Top-up Grocery Shop
% %
(Base: All who switched providers for each service)
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: 782) (Base: 808)
Benchmark 2007
Question not asked in
Benchmark survey
Wave 3 2009Wave 2 2008Wave 1 2008
–––
–––
n/an/a
n/an/a
18
Making Complaints
121024
161522
131622
131517
12311
10916
6251
59
657667
587274
6552
68
48
5860
8265
79
Future Likelihood of Switching Providers – Primary
(Base: All aged 15-74 – 1,000)
Mobile telephone provider
Car insurance provider
Main grocery shop
Top-up grocery shop
Electricity Supply Service
Home Insurance Provider
Switching Providers YesNo
Wave 3 2009Wave 2 2008Wave 1 2008
(+9%)
19
Making Complaints
761585137513651155115411641062
7375
646354
5343
57
495956
5947
57
6956
65
728482
Future Likelihood of Switching Providers – Secondary
(Base: All aged 15-74 – 1,000)
Bank/financial institution who offers current a/c service
Fixed/landline telephone provider
Broadband internet access provider
Health insurance
TV service provider e.g. Sky, ntl
Credit card provider
Savings/investments provider
Switching Providers YesNo
Wave 3 2009Wave 2 2008Wave 1 2008