National Consumer Agency

Market Research Findings:

Consumer Experiences with Direct Selling

August 2011

Market 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 suppliers

79% received calls – of this 30% signed up

Telecommunications

76% received calls – of this 12% signed up

2nd most common Telecommunications

43% received calls – of this 18% signed up

Energy suppliers

40% 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 amongst Living in Dublin 43% 35-54 Year olds 42%

Higher amongst Living 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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114

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 amongst ABC1/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 Yes

21%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

2007Aug 2008

Nov/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 REGION

SOCIAL

CLASS

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%