national consumer agency market research findings: household budgeting and impact of the recession...
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National Consumer Agency
Market Research Findings:Household Budgeting and Impact of the Recession
October 2010Research Conducted by
2
Making Complaints
Key Points
Household Budgeting and Impact of the Recession
Research Background & Methodology
Profile of Sample
Table of Contents
3
Making Complaints
Key Findings
• 62% of consumers have experienced a reduction in their household income in the last 12 months compared to the previous wave of market research conducted in Nov/Dec 2009(53% in Nov/Dec 2009). 64% stated that their expenditure has either remained the same or increased.
• 38% of consumers disagree that Ireland will be through the worst of the recession in 12 months time.
• 51% are not any more relaxed about spending than they were 6 months ago.
• 66% of consumers have learnt to manage their finances better as a result of the recession and will continue to do so going forward.
• Similar to Nov/Dec 2009; 61% are actively seeking out cheaper ways of living, and 59% would prefer to switch between brands of things they buy than do without them at all.
• Consumers are continuing to remain positive; as despite the recession 7 in 10 claim to be enjoying life as much as ever.
• 34% of consumers are spending more time ‘bargain hunting’ when buying groceries than they were pre-recession. 31% are spreading their shopping across a number of shops more, while the same proportion (30%) are spending less on their groceries overall.
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Making Complaints
Household Income & Expenditure
(Base: All aged 15-74– 1,000)
64
1529
43
2226
95 5
36
Increased a lot (5)Increased a little (4)
Remained the same (3)
Decreased a little (2)
Decreased a lot (1)
Don’t know
%
Expenditure
%
Income
62%
(1)(4)
(36)
(31)
(22)
(6)
(6)
(13)
(38)
(23)
(12)(8)
64%
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Making Complaints
One Word to Describe: How you Yourself Feel Right Now
(Base: All aged 15-74 – 1,000)
7
Making Complaints3 6
13
2832
6031
39
2118
5125 1
26
6%
Economic Outlook – I
(Base: All aged 15-74 – 1,000)
Strongly agree (5)
73%
%
As a result of the recession I will continue to shop around for better
deals even when the economy has settled
%
I will focus less on acquiring possessions and more on having memorable
experiences such as holidays
%
Ireland will be through the worst of the
recession in 12 months time
38%
23%38%
31%
Agree (4)
Neither/nor (3)
Disagree (2)
Strongly disagree (1)
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Making Complaints
112
21
5427
24
7153
36
Economic Outlook – II
(Base: All aged 15-74 – 1,000)
Strongly agree (5)%
I have learnt to manage my finances better as a result of the recession and will continue to
do so going forward
%
I am more relaxed about spending money than I
was six months ago
66%
51%
22%Agree (4)
Neither/nor (3)
Disagree (2)
Strongly disagree (1) 10%
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Making Complaints
Spending Thrift(Base: All aged 15-74– 1,000)
The recession has focused me on thinking carefully about what and when I buy
The recession is a good opportunity to pick up bargains in the sales
I am consciously trying to buy fewer things nowadays
I am putting off buying large spend items until the current situation improves
When shopping I budget for every cent
I regret the amount of money I have spent on stuff over the last few years
(4)
Strongly Agree
(5)
Neither/ Nor /DK
1816
2120
1515
2019
2322
2222
(2)
StronglyDisagree
(1)
(74)
(69)
(69)
(67)
(50)
(39)
Wave 5 2010Wave 4 2009
(72)
(67)
(68)
(67)
(50)
(36)
4548
4647
4650
3938
3134
2225
2726
2122
2219
2829
1916
1414
77
99
1513
1111
2321
312712
11
74
23
32
23
33
10
Making Complaints
4446
4648
4143
2730
1717
1313
1413
8827
31
15
18
12
14
8
11
7
7
4
3
3
3
3
3
Coping Behaviour
(Base: All aged 15-74– 1,000)
I am actively seeking out cheaper ways of living
I would prefer to switch between brands of things I buy than do without them at all
I still feel that it is better to pay more for quality products than settle for cheaper brands
I prefer to go without than sacrifice on quality
Neither/Nor /Don’t Know
2526
2424
2425
2728
(61)
(4)
Strongly Agree
(5)(2)
StronglyDisagree
(1)
(63)
(59)
(61)
(55)
(56)
(35)
(38)
Wave 5 2010Wave 4 2009
11
Making Complaints
55
51
48
43
29
32
36
38
15
16
19
23
19
21
14
1419
20
16
20
10
12
11
10
5
5
4
6
3
3
3
2
Lifestyle
(Base: All aged 15-74– 1,000)
Despite the recession I feel I am enjoying life as much as ever
I am cutting back on all non-essential spending
I am reluctant to plan any holidays until things improve in the economy
I am seeking out alternative ways to socialise that are less expensive
Neither/Nor /Don’t know
1819
1821
2627
2524
(67)
(66)
(53)
(52)
(4)
Strongly Agree
(5)(2)
StronglyDisagree
(1)
(70)
(50)
(48)
(67)
Wave 5 2010Wave 4 2009
12
Making Complaints
40
40
43
43
24
29
51
41
44
27
28
44
11
8
29
539
3
5
3
3
2
2
1
Change in Behaviour as A Result of Recession – I
(Base: All aged 15-74– 1,000)
Budgeting for household expenses
Collecting & using coupons when buying things
Using loyalty scheme points when making a purchase
Buying goods on special offer
Using online price comparison sites
Buying items online
Preparing home-made meals from scratch
Eating takeaway foods
Less%
The Same%
More% Never did
it
15
31
27
10
62
58
17
15
13
Making Complaints
Change in Behaviour as A Result of Recession – II
(Base: All aged 15-74– 1,000)
Less% The Same
%
More%
40
42
44
38
49
49
61
52
34
31
21
18
8
26
14
1111
12
7
30
5
3
4
3
Never did it
23
23
32
39
13
18
13
26
Spending time ‘bargain hunting’ when buying groceries
Spreading your shopping across a number of shops
Planning your weekly shopping in advance
Buying grocery items in bulk
Spend on groceries overall
Buying private label/own label goods
Buying Irish produced goods
Buying eco-friendly goods
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Making Complaints
• Amárach Research conducted the research by means of face-to-face interviewing with 1,000 people between the ages of 15-74.
• In all, 6 comparable “Waves” of Market Research have been completed since November / December 2007.
• 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 June 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
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Making Complaints
20
41 41
25
47
19
37
9
16
83
204
46
10
54
SEX AGEMARITALSTATUS
SOCIALCLASS
Profile of Sample(Base: All aged 15-74 – 1,000)
Male
Female
% % % %15-24
25-34
35-44
45-54
55+
Married
Living as Married
Single
Wid/Div/Sep
ABC1
C2DE
F50+/F50-
MAIN GROCERY SHOPPER
Yes No46%54%
Not statedNot stated