July 2012 - market research on Irish Internet users and online discount sites

1. National Consumer Agency
Market Research Findings:
Online Discount Sites
July 2012
Research Conducted by

2. Table of Contents
2
Key Findings
Main Findings: Online Discount Sites
Making Complaints
Research Methodology and Sample Profile
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3. 3
Key Findings
Making Complaints
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4. Key Findings - I
4
• 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 adultMaking Complaints 5 percentage
population - an increase of
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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5. Key Findings - II
5
•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 Complaints
Making 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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6. 6
Main Findings:
Making Discount Sites
Online Complaints
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7. Interaction with Online Discount Sites
7
Signed Up/Registered Purchased a Product and/or
with an Online Discount Site Service from on Online Discount Site
(Base: All adults aged 16+ – 1,004) (Base: All who have signed up/registered with online
discount sites – 611)
% %
Making Complaints
61% Yes 61% Yes
(57%) (56%)
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.
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8. Profile of Discount Site Users
(Base: All adults aged 16+ – 1,004)
8
Signed Up/Registered Purchased a product and/or service
with an Online Discount Site from the Online Discount Site
% %
Gender Gender
Male
48 Male 63
Female 73 Female 59
Age Age
16-24 57 16-24 53
25-34
35-44
72
71
Making Complaints
Total =
61%
25-34
35-44
68
59
Total =
61%
45-54 61 45-54 59
55+ 46 55+ 61
Region Region
Dubln 72 Dubln 73
ROL 53 ROL 56
Munster 61 Munster 55
Conn/Ulster 54 Conn/Ulster 52
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
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9. Frequency of Purchasing
(Base: All who have purchased from an online discount site – 371 )
9
Frequency of buying deals
%
More than once a week 3 7%
Once a week 4
More than once a month 14
Once a month 15
Making Complaints
Once every two months 23
Once every six months 24
Once a year 11
Less often 6
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.
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10. Satisfaction with Online Discount Sites
10
Incidence of Being Dissatisfied with Purchase Reasons for Being Dissatisfied
(Base: All who have purchased a product and/or (Base: All who were dissatisfied - 123)
service from an online discount site - 371)
% %
Poor service delivery/poor product 34
quality
Retailer could not provide service when 18
required/delivery delay
33% Making Complaints not as described
Yes Product/service 12
(28%)
Product/service not received 10
Difficult to redeem voucher 7
Could not contact service provider 6
Highest Amongst
25-34’s – 37% Not as good as originally thought/not
45-54’s – 37% value for money 5 #
Dublin – 38%
# All others mentions 3% or less
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.
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11. Sectors Dissatisfaction Relate to …..
(Base: All who were dissatisfied with their purchase – 123)
11
Health & Beauty Food & Drink Retail & Services Accommodation
34% 33% 33% 19%
Making Complaints
Electronics Activities Education Other
18% 11% 3% 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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12. Incidence of Complaining when Dissatisfied
12
Did you Complain?
Who Did you Complain to?
(Base: All who were dissatisfied with their
(Base: All who complained – 63)
purchase – 123)
%
%
The online discount site company 70
The actual provider
52%
(49%)
Making Complaints
Yes
Other 5
43
# All others 2% or less
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.
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13. Factors behind lack of Complaints
(Base: All who did not complain – 59)
13
% %
Didn’t bother/too much hassle 14 Didn’t feel I was entitled to complaint 5
after service was so cheap
Wasn’t an expensive purchase 8 Too difficult to complain/did not know 5
how to complain
Felt it would be a waste of time 8 Felt the issue was my fault 5
Making Complaintsthe deal terms and
I hadn’t fully read
I didn’t have enough time 6 5*
conditions before buying
Was a service issue, not directly related 6
to purchase Don’t know 14
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
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14. Complaint Resolution
(Base: All who complained when dissatisfied – 63)
14
Was the Complaint Resolved?
%
No 61%
Making Complaints
Yes (52%)
3 in 5 of those who complained had their complaint resolved – an encouraging increase on November
2011 figures.
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15. 15
Research Methodology
Making Complaints
and Sample Profile
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16. Profile of Sample and Research Methodology
(Base: All adults aged 16+ – 1,004)
16
Gender Age Social Class Region
% % % %
17
Dublin
16-24
ABC1/ 28
Male F50+
49 25-34 48
22
Making Complaints Leinster
Rest of
26
35-44 19
45-54 16
Munster 28
Female 51 C2DE/ 52
F50-
55+ 26 Conn/
Ulster 18
• 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.
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