NCA market research findings shopping, pricing and grocery

National Consumer Agency

Market Research Findings:Shopping and Pricing

March 2011Research Conducted by

2

Making Complaints

Key Points

Section 1: Shopping and Pricing

Section 2: Grocery Shopping

Research Background & Methodology

Profile of Sample

Table of Contents

3

Making Complaints

Key Findings - I

• 17% of consumers find it difficult to compare prices. Areas cited most difficult:

• Building related services, Pharmacies, Supermarkets.

• 57% of consumers say price is the main influencing factor in determining where to shop.

• “Reasonable value for money” has changed notably from consumers’ perspective since 2004 in the following areas;

Increases: - Pubs (19%), Supermarkets (15%), Hairdressers (13%), Shops Selling Clothing (12%)

Decreases: - Telecom Providers (18%), Local newsagents (15%), Holidays (13%), Dentists (12%), Banks (11%), Solicitors* (12%) and Auctioneers* (14%)

*Note: Over 50% of respondents recorded a “Don’t Know” answer in relation to these sectors

4

Making Complaints

Key Findings - II

• In relation to grocery shopping:

•72% choose where to shop based on price

•79% prefer long term lower prices instead of special offers and regular promotions.

•73% of consumers are more likely to pick up special offers while in their usual store than to visit a particular store based on

specials offers advertised.

•Overall Avg. Grocery Basket - Branded 65%, Own Brand 35%

•Branded - Beer (89%), Tea/Coffee (84%), Baby Products (81%)

•Own Brand - Toilet Tissue/Kitchen Rolls (74%), Household Cleaning Products (67%) and Milk (56%).

5

Making ComplaintsSECTION 1:

Shopping and Pricing

6

Making Complaints

24 26 25 32 29

47 48 4243 46

19 17 2116 13

9 12 9 1210

Nov/Dec-10 Jun-10

Nov/Dec-09 Jun-09

Nov/Dec-08

Shopping Around(Base: All aged 15-74 – 1,000)

Comparison of prices

I always compare/shop

around for better prices

I sometimes compare/shop


75%

I very rarely compare/shop


I never compare/shop around for better

prices

%%%%%

75%67%74%71%

7

Making Complaints

23

22

20

20

17

14

13

13

Pharmacies

Waste service`

Travel agents

Entertainment outside the home e.g. Cinema, concerts

Pubs

Bus & train transport

Education providers

Doctors, hospitals or other medicals

Most Likely to Shop Around In .... Within the Last 12 Months

Supermarkets

Shops selling clothing/footwear

Petrol stations

Insurance products & services

Communication services including home phone, mobile, internet

Shops selling furniture or household appliances

Airlines

Energy suppliers

75

74

57

52

45

45

42

39

Primary

%Restaurants, take-always or hotels

Personal care e.g. Hairdressers beauticians

Convenience stores/newsagents

Car dealers

TV services providers

Entertainment at home e.g. DVDs

Building and related services

Banking products services

37

35

32

30

30

29

28

25

Secondary

%

(Base: All who compare/shop around for better prices – 707)

%

Tertiary

71%

8

Making Complaints

Building related services e.g. tradesmen

Pharmacies

Supermarkets

Financial institutions

Doctors

Insurance companies

Utility companies

Telecommunications

Clothing

Pubs

# All others 4% or less

17%

Difficulty Comparing Prices?

%

Yes

%

12

12

12

9

9

8

6

6

5

5

(Base: All aged 15-74 – 1,000)

9

Making Complaints

Frequency of Using Price Comparison Sites

7

26

20

47

Yes, all the time

Yes, sometimes

Very rarely

No, never

(Base: All who use the internet – 724)

%

(8)

(28)

(16)

(48)

72%

Higher amongstRest of Leinster 43%45-54 year olds 40%ABC1 F50+ 38%

Higher amongst55+ 61%Not confident 61%

() = June 2010

33%

10

Making Complaints5772

65 70 64

19

1317 13 22

127 10 8

95 6 5 23 1 2 2 13 2 2 2

6

Key Influencing Factors in Determining Where to Shop

%

Price

Strongest Influencing Factor

(Base: All Aged 15-74 – 1,000)

Nov/Dec ‘09 Nov/Dec ‘08

Convenience

Shopped there previously

ServiceOther

Don’t know

June ‘09

% % % %

June ‘10Nov/Dec ‘10

11

Making Complaints

Most Important Factors in Deciding where to Shop for Goods/Services – I

(Base: All aged 15-74 – 1,000)

Supermarkets Clothing or footwear

Furniture or household appliances

2920 26 25

19 359 8

1713

17 15

1123

21

7 9 109

7 8 78

2 1 13

2 2 3 61 1 4 5

16

Price/value for money/special offers

Convenience i.e. Location, parking etc.

Range of products/services

Quality of products/services

Familiarity/past experience

Customer serviceAdvertising

RecommendationReputation/image

% % % %

Convenience stores/newsagents

12

Making Complaints

% % % %

Most Important Factors in Deciding where to Shop for Goods/Services – II

(Base: All aged 15-74 – 1,000)





Customer service

Advertising

Reputation/image

2918 23 18

1521 12 19

1314

13 14

5 7 7

911 14 14

9

4 7 7

814 16 14

6 12 7 61 1 1

11


Recommendation from family/friends

Pubs, restaurants, takeaways /

hotelsPersonal carePharmacies

Doctors, hospitals or

other medical

13

Making Complaints

Most Important Factors in Deciding where to Shop for Goods/Services – III

(Base: All aged 15-74 – 1,000)

% % % %

17 24 2212

1714

818

1516

16 11

64 7

127

6 8

1015

13 19

8 9

1010

5 4

512

2 3

4

2212

1

14



Customer service

Advertising

Reputation/image

Banking products

and servicesCommunications/

TV servicesEnergy

suppliersBuilding and

related services


Recommendation from family/friends


Coverage


14

Making Complaints

23

19

17

16

6

5

Reasonable Value for Money?

(Base: All aged 15-74 – 1,000)

Supermarkets

Clothing

Hairdressers

Local newsagents

Local shops

Holidays

Local convenience stores

Restaurants

71

62

54

51

47

43

41

40

Primary

%Hotels

Telecom providers

Utilities

Chemists

Pubs

Trades people(31% Don’t know)

Insurance

Doctors

38

35

34

34

34

32

24

24

Secondary

%Motor vehicles(31% Don’t know)

Banks

Dentists

Financial products(28% Don’t know)

Solicitors(53% Don’t know)

Auctioneers(59% Don’t know)

%

Tertiary

(56)

(41)

(50)

(66)

(49)

(56)

(44)

(32)

(33)

(18)

(19)

(32)

(30)

(19)

(53)

(43)

(35)

(15)

(39)

(22)

(29)

(29)

( ) Figures refer to Consumer Rights National Survey Report 2004

15

Making Complaints38

1632 31

46

35

42 40

9

25

15 15

2411 14

7

Incidence of Checking Prices

(Base: All aged 15-74 – 1,000)

All the time

ReceiptsUnit pricing of products

%

Prices of products

Special offers are accurately recorded

on receipts

% % %

Sometimes

Very rarely

Never

84%

51% 74% 71%

16

Making ComplaintsSECTION 2:

Grocery Shopping

17

Making Complaints

1320

32 34

43

54

56 5518

12

5 5115 411

3 2 2

15

Total Nov/Dec ‘10 June ‘10

% % %

(Base: All aged 15-74 – 1,000)

Overall Awareness of the Price of Everyday Goods

All responsible for the main grocery shop – 495 (50%)

56% aware of prices

74%

88%

Very aware of the prices (5)

Fairly aware of the prices (4)

Don't really know the prices (3)

Not at all aware of the prices (1)

Somewhat unaware of the prices (2)

(22)

(49)

(13)

(9)

(7)

( ) = June 2010

Nov/Dec ‘09%

89%

18

Making Complaints

Main Reasons for Choice of Supermarket for Main Grocery Shop

(Base: All responsible for main grocery shop - 495)50%

60

47

20

15

13

6

6

Price

Convenience

Parking

Late night opening

Quality of Product

Loyalty

Support local shops

Wave 2 2008

%

58

49

17

8

11

8

6

Wave 3 2009

%

62

43

18

9

10

10

6

Wave 4 2009

%

70

55

20

12

12

10

6

Wave 5 2010

%

72

49

22

9

12

10

8

Wave 6 2010

%

19

Making Complaints

Own Brand Versus Regular Brand

65%35%Own Brand

Regular Brand

%

50% (Base: All main grocery shoppers – 495)

Nov/Dec 2010

64%

36%Own Brand

Regular Brand

%

June 2010

62%

38%Own Brand

Regular Brand

%

Nov/Dec 2009

Regular Brand Higher amongst:- Males (70%).- 55+ (69%).- Those who are not aware of the prices of everyday goods (69%).

20

Making Complaints

Own Brand Versus Regular Brand Preference – I

(Base: All responsible for grocery shop who purchase each of the products - 495)

Regular brand

Own brand

Regular brand

Own brand

89

11

50%

84

16

81

19

80

20

73

27

73

27

72

28

72

28

71

29

70

30

Beer Tea/Coffee Breakfast cereal

Chocolate/ sweets

Baby Products

Yoghurts Bread Fresh meat Frozen meat Soft drinks

21

Making Complaints

Own Brand Versus Regular Brand Preference – II(Base: All responsible for grocery shop who purchase each of the products - 495)

Regular brand

Own brand

50%

68

32

68

32

Deli/Processedmeat

Butter/ spreads Toiletries Tinned/

frozen food Biscuits

66

34

63

37

57

43

Regular brand

Own brand

55

45

Juice drinks

44

56

33

67

26

74

Milk Household cleaning products

Toilet tissue/ kitchen towel

22

Making Complaints45%55%

Change in Grocery Shopping Since the Start of the Year

Yes

No

Change in Grocery Shopping

(55%)(45%)

%

Male (39%) 33%Female (47%) 49%

50%(Base: All main grocery shoppers – 495)

Cutting back on treats for you/family

Buying cheaper versions of products (e.g. own brands rather than regular)

Taking more advantage of special offers, using coupons, etc.

Buy less

Spreading your grocery shopping over different supermarkets and stores to get the best valueSwitched your main grocery shopping from a different retailer to the one you use now

Started shopping up North (across the boarder)

Do without or cut back e.g. buy less meat

55

42

42

33

30

8

6

11

53

36

48

43

35

10

9

14

%

() = June 2010

Nov/Dec ‘10June 2010

23

Making Complaints

Preference for Price Cuts or Special Offers

50%(Base: All responsible for the grocery shop – 495)

79 81 77

20 1716

1 2 7

Long term lower prices

Don’t know

%

Nov/Dec 2009

%

June 2010

%

Nov/Dec 2010

Regular promotions and special offers

24

Making Complaints

Special Offer Seekers?

50% (Base: All responsible for the grocery shop – 495)

25

73

2

Select a particular store to visit based on special

offers advertised

Don't buy special offers

%

Visit your usual store and pick up special offers while

you are there

Females 26%Males 19%

15-24’s 43%

Male 78%Females 72%

55+ 86%

25

Making Complaints

Research Background and Methodology

26

Making Complaints

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 November/December 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

Nov/Dec 2010

Wave 6

27

Making Complaints

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 No

50%50%

28

Making Complaints

7

25

5021

50

21

30

19

1832

22

28

78

SEX AGE REGION SOCIAL CLASS

Profile of Sample – II – Main Grocery Shoppers(Base: All Mainly Responsible for Grocery Shopping in Home – 495)

Male(49)

Female(51)

% % % %15-24

(17)

25-34(22)

35-44(19)

45-54(16)

55+(26)

ABC1 F50+(48)

C2DE F50-(52)

50%

( ) = Total Sample

Dublin(28)

Rest of Leinster

(26)

Munster(28)

Conn/ Ulster

(18)

29

Making Complaints48%52%70%30%

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

USE INTERNET

No Yes

EVER PURCHASED ONLINE

No Yes

BANKING ONLINE

No Yes

(Base: All Internet Users - 724) (Base: All Internet Users - 724)

72%

28%

() = figures from June 2010

(72%)

(28%)(44%)(56%)(32%) (68%)

70

75

94

88

85

71

37

Male

Female

15-24

25-34

35-44

45-54

55+

% Yes

71

67

64

75

73

69

61

Male

Female

15-24

25-34

35-44

45-54

55+

% Yes

51

45

37

57

56

43

43

Male

Female

15-24

25-34

35-44

45-54

55+

% Yes

Documents

NCA market research findings shopping, pricing and grocery