National Consumer Agency

Market Research Findings: Online Discount Sites

July 2012

Research Conducted by

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Key Findings

Main Findings: Online Discount Sites

Research Methodology and Sample Profile

Table of Contents

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Key Findings

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Key Findings - I

• 61% of consumers have signed up to an online discount site. • Of those who have signed up, 61% have purchased a product

or service from an online discount site which is equivalent to 37% of the adult population - an increase of 5 percentage points from the figure (32%) recorded in November 2011.

• One in three (33%) of those who purchased from an online

discount site have had reason to be dissatisfied with a purchase, up 5 percentage points since November 2011.

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Key Findings - II

• The main reasons cited for the dissatisfaction were: • Poor service delivery/Poor product quality (34%) • Retailer could not provide service when required/delivery

delayed (18%).

• Just over half (52%) of those who were dissatisfied complained • 70% complained to the online discount site company and • 43% complained to the actual provider of the product or

service.

• Over 3 in 5 (61%) of those who complained had their complaint resolved.

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Main Findings: Online Discount Sites

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Interaction with Online Discount Sites

Over 3 in 5 Irish adults have registered/signed up with online discount sites. Of these a

further 61% state to have purchased something from these sites which equates to 37% of

Irish adults. Levels of registration and usage have increased since November 2011.

61%

Signed Up/Registered

with an Online Discount Site

Yes 61%

Purchased a Product and/or

Service from on Online Discount Site

Yes

% %

(Base: All adults aged 16+ – 1,004) (Base: All who have signed up/registered with

online discount sites – 611)

(57%) (56%)

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Profile of Discount Site Users

(Base: All adults aged 16+ – 1,004)

Females, those aged between 25-44 and those resident in Dublin are more likely to have signed up

to a online discount site. Levels of actual usage suggest that males and those in the 25-34 age

group who have signed up are more likely to have purchased from the discount site

Gender

Male

Female

Age

16-24

25-34

35-44

45-54

55+

Region

Dubln

ROL

Munster

Conn/Ulster

48

73

57

72

71

61

46

72

53

6154

%

Signed Up/Registered

with an Online Discount Site

Gender

Male

Female

Age

16-24

25-34

35-44

45-54

55+

Region

Dubln

ROL

Munster

Conn/Ulster

63

59

53

68

59

59

61

73

56

5552

%

Purchased a product and/or service

from the Online Discount Site

Total =

61%

Total =

61%

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15

23

24

11

6

34

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Frequency of Purchasing

Frequency of buying deals

More than once a week %

7% of people purchased at least once a week from an online discount

site, with over 1 in 3 (36%) of people purchasing at least once a month.

(Base: All who have purchased from an online discount site – 371 )

Once a week

More than once a month

Once a month

Once every two months

Once a year

Less often

Once every six months

7%

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Satisfaction with Online Discount Sites

33%

Incidence of Being Dissatisfied with Purchase Reasons for Being Dissatisfied

% % Poor service delivery/poor product quality

Retailer could not provide service when required/delivery delay

Product/service not as described

Product/service not received

Difficult to redeem voucher

Could not contact service provider

Not as good as originally thought/not value for money

34

18

12

10

7

6

5

(Base: All who have purchased a product and/or

service from an online discount site - 371)

(Base: All who were dissatisfied - 123)

# All others mentions 3% or less

Yes

Of those that have purchased from an online discount site; one third (33%) expressed their

dissatisfaction with at least one purchase. This represents a marked increase in dissatisfaction levels.

Primary reason for dissatisfaction was poor service delivery/product quality.

(28%)

#

Highest Amongst

25-34’s – 37%

45-54’s – 37%

Dublin – 38%

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Sectors Dissatisfaction Relate to …..

(Base: All who were dissatisfied with their purchase – 123)

Health & Beauty

34%

Food & Drink

33%

Retail & Services

33%

Accommodation

19%

Electronics

18%

Activities

11%

Education

3%

Other

1%

Dissatisfaction is highest within the Health and Beauty Sector, with over 3 in 10 people

unhappy with their purchase, closely followed by the Food & Drink and Retail & Services

sector. It can be seen that dissatisfaction is not contained within one individual sector but

evident across many.

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70

43

5

Incidence of Complaining when Dissatisfied

Half of all who were dissatisfied with their purchase complained, increase on November 2011

evident. 7 in 10 complained to the online discount site company while over 2 in 5 complained

to the actual provider – this means that complaints directed at both for some. Encouragingly

incidence of willingness to complain has increased.

52%

Did you Complain?

Yes

Who Did you Complain to?

The online discount site company

The actual provider

Other

%

%

(Base: All who were dissatisfied with

their purchase – 123) (Base: All who complained – 63)

# All others 2% or less

(49%)

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Factors behind lack of Complaints

(Base: All who did not complain – 59)

%

Didn’t bother/too much hassle

Wasn’t an expensive purchase

Felt it would be a waste of time

I didn’t have enough time

Was a service issue, not directly related to purchase

14

8

8

6

6

The top reason for not complaining was the perceived bother/hassle it would cause,

closely followed by the fact that people felt that the purchase wasn’t expensive enough

to warrant a complaint or that it would be a waste of time.

* All others 3% or less

Didn’t feel I was entitled to complaint after service was so cheap

Too difficult to complain/did not know how to complain

Felt the issue was my fault

I hadn’t fully read the deal terms and conditions before buying

Don’t know

%

5

5

5

5

14

*

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Complaint Resolution

3 in 5 of those who complained had their complaint resolved – an encouraging increase on

November 2011 figures.

No 61%

Was the Complaint Resolved?

Yes

%

(Base: All who complained when dissatisfied – 63)

(52%)

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Research Methodology and Sample Profile

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48

28

22

26

19

2816

1826

49

5251

Profile of Sample and Research Methodology

Gender Age Social Class Region

Male

Female

16-24

35-44

55+

Dublin

Rest of

Leinster

Munster

Conn/

Ulster

ABC1/

F50+

C2DE/

F50-

% % % %

25-34

45-54

(Base: All adults aged 16+ – 1,004)

• A nationally representative sample of 1,004 adults aged 16+ was achieved via means of an online

omnibus.

• Fieldwork was conducted between 7th – 14th May 2012.

• Please Note: All figures in brackets relate to a previous study undertaken in November 2011.