NCA-Direct-Selling-market-research-2011

National Consumer Agency
Market Research Findings:
Consumer Experiences with Direct Selling
August 2011
Market Research Conducted by
Table of Contents
2
 Key Findings
 Section 1: Door-to-Door Selling
Making Complaints
 Section 2: Telephone Sales
 Research Background and Methodology
 Profile of Sample
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3
Key Findings
Making Complaints
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Key Findings
Direct Selling
4
Experienced in the past
12 months
% of all consumers
Door-to-Door Selling
Telephone Sales
41%
24%
Most commonly
contacted by
Energy suppliers
Telecommunications
79% received calls – of this 30% signed up 76% received calls – of this 12% signed up
2nd most common
Telecommunications
Energy suppliers
43% received calls – of this 18% signed up 40% received calls – of this 10% signed up
Making Complaints
Of those who signed up informed of right to
cancel purchase
57%
42%
Of those who signed up felt pressurised into
signing up
21%
20%
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5
Section 1: Door-to-Door Selling
Making Complaints
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Experience of Door-to-Door Selling
(Base: All aged 15-74 – 1,000)
6
Experienced Somebody Trying to
Sell You a Product/Service
Experienced Somebody Trying to Get You
to Switch from Current Provider
%
%
Making
Complaints
35%
Yes
34%
Yes
Higher amongst
 Living in Dublin 43%
 35-54 Year olds 42%
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Higher amongst
 Living in Dublin 41%
 45-54 Year olds 42%
 Part-time employed 41%
Categories of Product/Service Sold and Incidence
of Switching/Signing up
7
(Base: All who experienced door-to-door selling in past 12 months - 405)
% Purchase/Switched
%
Energy suppliers
79
Telecommunications
TV Service
30
18 *
43
33
Making Complaints
11 *
Home Improvements, Gardening etc.
18
9*
Catalogue sales
18
9*
Monitored home security system
Others*
* All others 1% or less
* Caution small base
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12
5
6*
Information Provided at the Door
(Base: All who experienced door-to-door selling in past 12 months - 405)
8
Offer was Fully
Explained Before
Signing Up
%
Strongly
Agree (5)
11
%
Was informed of my
right to cancel any
purchase
57
Felt Pressurised into
Signing up/Taking
out Product/Service
%
4
57%
Agree (4)
Making Complaints
46
17
21%
32
%
Received written
information on
product/service before
signing up
39
Neither/
Nor (3)
28
31
47%
Disagree (2)
Strongly
Disagree (1)
Mean Score:
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8
7
16
3.5
2.6
Cancellation Form & Expectations
(Base: All who signed up to a product/service at the door - 130)
9
Receipt of cancellation form
upon sign up/switch?
Product/service Received Correspond to
Information given by Sales Person?
%
%
Making Complaints
84%
29%
Yes
Higher amongst:
 35-44 Year olds 34%
 Knowledgeable regards consumer rights 33%
 Protected regards consumer rights 33%
 Confident regards consumer rights 32%
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Yes
Higher amongst
 ABC1/F50+ 91%
 Females 88%
 Knowledgeable regards consumer rights 88%
 Protected regards consumer rights 89%
10
Section 2: Telephone Sales
Making Complaints
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Experience of Telephone Selling
(Base: All aged 15-74 – 1,000)
11
Experienced Somebody Trying to
Sell You a Product/Service
Experienced Somebody Trying to Get You
to Switch from Current Provider
%
%
Making
Complaints
21%
No
Yes
No
20%
Higher amongst:
Higher amongst:
 45-54 Year olds 29%
 45-54 Year olds 28%
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Yes
Categories of Product/Service Sold over the
Phone and Incidence of Switching/Signing up
12
(Base: All who experienced direct phone selling in past 12 months - 242)
% Purchase/Switched
%
Telecommunications
76
Energy suppliers
TV Service
40
22
Making Complaints
Home Improvements, Gardening etc.
*
10
*
Monitored home security system
6
Catalogue sales
6
Others*
4
* All others 1% or less
* Caution small base
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*
12 *
10 *
8*
Information Provided Over the Phone
(Base: All who experienced direct phone selling in past 12 months - 242)
13
Felt Pressurised into
Signing up/Taking
out Product/Service
%
%
5
3
Strongly
Agree (5)
%
Was informed of my
right to cancel any
purchase
Offer was Fully
Explained Before
Signing Up
42
43%
Agree (4)
17
38
Making Complaints
Neither/
Nor (3)
20%
39
40
27
Disagree (2)
Strongly
Disagree (1)
Mean Score:
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41%
9
8
14
3.3
2.7
14
Research Background
Making
Complaints
and Methodology
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Research Background and Methodology
15
Nov/Dec
2007
Aug 2008
Nov/Dec
2008
May/June
2009
Benchmark
Wave 1
Wave 2
Wave 3
Nov/Dec 2009
June 2010
Nov/December
2010
May/June 2011
Wave 5
Wave 6
Wave 7
Wave 4
Making Complaints
Current Wave
 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 May/June
2011.
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Profile of Sample – I
(Base: All aged 15-74 – 1,000)
16
SEX
AGE
REGION
SOCIAL
CLASS
%
%
%
%
MAIN GROCERY
SHOPPER
15-24
17
Male
49
25-34
Dublin
28
ABC1
F50+
22
48
Making Complaints
26
Rest of
Leinster
Female
35-44
19
45-54
16
Munster
28
51
C2DE
F5055+
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26
Conn/
Ulster
18
52
Yes
50%
50%
No