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National Consumer Agency Market Research Findings: Shopping and Pricing March 2012 Research Conducted by

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Page 1: Market Research on shopping and pricing in Ireland

National Consumer Agency

Market Research Findings:Shopping and Pricing

March 2012Research Conducted by

Page 2: Market Research on shopping and pricing in Ireland

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Making Complaints

www.nca.ie

Key Findings

Section 1: General Shopping and Pricing

Section 2: Grocery Shopping

Research Background and Methodology

Profile of Sample

Table of Contents

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Making Complaints

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Key Findings

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Key Findings - I

Shopping and Pricing

• Over 4 in 5 (85%) compare/shop around for better prices.

• Price remains the leading influencing factor in determining where to shop at 56% (↑3%) with convenience second at 21% (↓2%).

• Consumers citing an awareness of the price of everyday goods has increased from 71% to 78%.

• For those responsible for the main grocery shop, 93% state that they are aware of the prices of everyday goods, an all-time high.

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Key Findings – II

Grocery Shopping

•Price is number one determining factor in deciding where to carry out the main grocery shop, rising by 10% points to 73%, with convenience considered the second most important factor, at 54%.

• Over 3 in 10 (31% up 3%) now visit a particular store based on special offers advertised, whereas almost 2 in 3 (65%) consumers visit their usual store and pick up special offers while there.

• The overall average grocery basket consists of 65% branded and 35% own brand goods.

• In recent years, 1 in 5 (22%) think the quality of own brand products has improved or is better than they thought, and a further 17% now think that own brand products are just as good as branded products.

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Section 1: General Shopping and Pricing

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37 3324 26 25

4849

47 4842

11 13

19 1721

5 10 9 124

Nov-11 May/June-11 Nov/Dec-10 Jun-10 Nov/Dec-09

Shopping Around

(Base: All aged 15-74 – 1,000)

Comparison of prices

I always compare/shop

around for better prices

I sometimes compare/shop

around for better prices

I very rarely compare/shop around

for better pricesI never compare/shop

around for better prices

%%%%%

67%74%71%82%85%

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Making Complaints

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May/June ‘11

56 53 5772

65

21 23 19

1317

11 13 127 10

7 65 64 3 3 1 22 1 3 2

6

Key Influencing Factors in Determining Where to Shop

%

Price

Strongest Influencing Factor

(Base: All Aged 15-74 – 1,000)

Nov/Dec ‘09

Convenience

Shopped there previously

ServiceOther

Don’t know

% % % %

June ‘10Nov/Dec ‘10Nov ‘11

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Making Complaints

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25

42 38

20

53

5147

54

11

38

12

3 511

4 1 2 37

Total Nov/Dec ‘10

% %

(Base: All aged 15-74 – 1,000)

Overall Awareness of the Price of Everyday Goods

All responsible for the main grocery shop – 526 (53%)

78% aware

of prices

85%

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)

(27)

(44)

(14)

(9)(6)

( ) = May/June 2011

May/June ‘11%

93%

Nov ‘11

%

74%

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Section 2: Grocery Shopping

Page 11: Market Research on shopping and pricing in Ireland

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73 63 72 70 62 58 60

54 5449 47 49 43 55

19 22 22 20 17 18 209 8 9 15 8 9 12

21 16 12 13 11 10 129 9 10 6 8 10 1012 10 8 6 6 6 6

Nov-11 Jun-11 Nov/Dec-10 Jun-10 Nov/Dec-09 Jun-09 Nov/Dec-08

Main Reasons for Choice of Supermarket for Main Grocery Shop

(Base: All responsible for main grocery shop - 526)53%

Price

Convenience

Parking

Late Night Opening

Quality of ProductLoyalty

Support Local

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Special Offer Seekers?

53%

(Base: All responsible for the main grocery shop – 526)

31 28 25

65 66 73

4 6 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

May/June ‘11 Nov/Dec ‘10

%%

Nov ‘11

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Own Brand Versus Regular Brand

65%35%

%

53% (Base: All main grocery shoppers – 526)

Nov/Dec 2010

64%

36%

%

June 2010

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

Own Brand

Regular Brand

Own Brand

Regular Brand

65%

35%

%

May/June 2011

Own Brand

Regular Brand

Higher amongst–Those who are not aware of the prices of everyday goods (74%).–55+ (71%).–ABC/F50+(70%).

65%

35%

Own Brand

Regular Brand

%

November 2011

Higher amongst–Those who are not aware of the prices of everyday goods (74%).–Males (69%).–Working full-time (68%).

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72

28

73

27

76

24

75

25

82

18

74

26

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

Regular brand

Own brand

Regular brand

Own brand

Beer Tea/Coffee Breakfast Cereal

Chocolate/ Sweets

Baby Products

Yoghurts Bread Fresh Meat Frozen Meat Soft Drinks

( ) = +/-% vs May/June 2011

89

11

66

34

84

16

71

29 (+5%)

(+11%)

53%

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64

36

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

73

27

Deli/ProcessedMeat

Butter/ Spreads Toiletries Tinned/

Frozen Food Biscuits

66

34

57

43

61

39

58

42

Juice Drinks

42

58

33

67

24

76

Milk Household Cleaning Products

Toilet Tissue/ Kitchen Towel

Regular brand

Own brand

Regular brand

Own brand

53%

( ) = +/-% vs May/June 2011

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27

23

20

19

18

17

16

Switched to Own Branded Products within the Past 12 Months

Breakfast cereal

Bread

Baby products*

Household cleaning products

Toilet tissue/kitchen towel

Toiletries

Biscuits

% Yes

(Base: All who purchase own branded products)

15

14

13

13

12

12

Milk

Tea/Coffee

Frozen meat

Tinned/frozen food

Butter/spreads

Yoghurts

% Yes

12

11

9

9

8

8

Soft drinks

Juice drinks

Fresh meat

Deli/processed meat

Chocolate/sweets

Beer*

% Yes

* Caution small base size

Page 17: Market Research on shopping and pricing in Ireland

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Factors Which Influence Choice for Own Brand Products – Volumetric Analysis*

34 34

38 37

3 3

19

1 14 42 2

18

%

Price

Packaging

Past Experience

Advertising

Don’t purchase own branded productsRecommendations

(Base: All main grocery shoppers – 526)

Quality

53%

%

Nov 2011 May/June 2011

*Volumetric Analysis is where the most influencing factors are ranked, and a score is applied according to the ranking, the level of importance is then determined by these scores. It is a standard research approach applied to ranking importance of factors.

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Where Own Branded Products are Bought

(Base: All that purchase own brand products - 203)

74%

16%

10%

%

Existing Supermarket

Switched supermarket

Both

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Change in Perceptions Towards Own Branded Products in Recent Years

(Base: Responsible for the main grocery shop - 526)

22

21

17

10

5

4

2

2

2

53%

The quality has improved/is better than I thought

No change

Just as good as branded products

Better value for money

They have improved

More of a variety available

Much more positive towards branded products

Have begun switching to own brand

Some are ok

* All other mentions 1% or less

%

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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 November 2011.

Research Background and Methodology

Nov/Dec 2007

Aug 2008Nov/Dec

2008

Nov/Dec 2009 June 2010Nov/December

2010

Benchmark

Wave 4 Wave 5

Wave 1 Wave 2

Wave 6

May/June 2011

Wave 7

May/June 2009

Wave 3

Nov 2011

Wave 8Current Wave

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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 No47%53%

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5

25

48

18

52

23

30

22

17

32

25

28

75

SEX AGE REGION SOCIAL CLASS

Profile of Sample – II – Main Grocery Shoppers(Base: All Mainly Responsible for Grocery Shopping in Home – 526)

Male(49)

Female(51)

% % % %15-24

(17)

25-34(22)

35-44(19)

45-54(16)

55+(26)

ABC1 F50+(48)

C2DE F50-(52)

53%

( ) = Total Sample

Dublin(28)

Rest of Leinster

(26)

Munster(28)

Conn/ Ulster

(18)

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54

57

40

70

66

54

38

80

77

72

85

84

76

69

55%45%

78%

22%

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 - 762) (Base: All Internet Users - 762)

76%

24%

() = May/June 2011

(75%)

(25%)

(49%)(51%)(30%)

(70%)

Male

Female

15-24

25-34

35-44

45-54

55+

% Yes

Male

Female

15-24

25-34

35-44

45-54

55+

% Yes

Male

Female

15-24

25-34

35-44

45-54

55+

% Yes

76

76

95

92

88

73

44

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Profile of Sample – IV – Social Media

Type of phone

Regular users of .......

(Base: All aged 15-74 – 1,000)

45

46

39

44

42

44

29%

Higher amongst:

15-24’s

25-34’s

ABC1/F50+

Working full time

Students

Dublin

%

Higher Amongst

Facebook

Twitter

Bebo

Linkedin

None of These

50

10

6

2

48

47

10

6

1

51

%

Have a ‘Smart phone’

() = May/June 2011

Nov 2011May/June 2011

(21)

15-24 86%ABC1F50 59%

Dublin 55%

15-24 21%

55+ 86%C2DEF50- 56%Munster 53%