National Consumer Agency

Market Research Findings:Money Resolutions for 2011 and

Coping with the Recession

February 2011Research Conducted by

2

Making Complaints

Key Points

Money Resolutions for 2011 and Coping with the Recession

Research Background & Methodology

Profile of Sample

Table of Contents

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Making Complaints

Key Findings - I

• 61% indicated “Household income decreased since the same period in the previous year”: Of these:

•31% = expenditure increased in the period

•29% = expenditure remained the same

• Biggest financial worries for 2011:

•“not having enough money to meet day to day expenses” (32%)

•“not being able to meet unexpected expenses” (23%)

• Number one money resolution for 2011 “budget better” (33%)

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Making Complaints

Key Findings - II

• Percentage who experienced financial difficulty* in the past 12 months:

• payments on a credit card (13%)

• payments on a personal loan (14%)

• payments on a mortgage (12%)

• 56% budgeting more for household expenses.

• 44% spending more time ‘bargain hunting’ for groceries

• 36% spreading shopping across a greater number of shops

• 34% spending less on groceries overall

* Defined as being 3 or more months behind with payments.

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Making Complaints

Key Findings - III

• Consumers’ economic outlook increasingly negative since the last wave of research (June 2010):

•Almost 4 in 5 (77%, up 39%) disagree with the statement “Ireland will be through the worst of the recession in 12 months time”.

• Enduring lessons learnt:

•Almost 3 in 4 (72%) will continue to shop around for better deals when the economy improves.

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Making ComplaintsMoney Resolutions for 2011 and

Coping with the Recession

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Making Complaints

1 63

1931

41

1824

9

4 7

37

Household Income & Expenditure - I

Increased a lot since the same period last year (5)

Increased a little (4)

Remained the same (3)

Decreased a little (2)

Decreased a lot (1)

INCOME EXPENDITURE

(Base: All aged 15-74 – 1,000)

() = June 2010Don’t know

% %

61%

66%

(-)(4)

(29)

(36)

(26)

(5)

(6)

(22)

(15)

(43)

(9)

(5)

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Making Complaints92

22

14

2973

1015

24

Household Income & Expenditure - II

Increased a lot since the same period last year (5)

Increased a little (4)

Remained the same (3)

Decreased a little (2)

Decreased a lot (1)

%

%Increased: Base is too

Small to Analyse

Stayed the same (%)

%

Decreased (%)

EXPENDITURE:

INCOME:

(Base: All aged 15-74 – 1,000)

61 31 4(62) (43)(4)

Don't know

= 4% (5%)

() = June 2010

31%16%

39%

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Making Complaints

No. 1 Money Resolution for 2011

(Base: All aged 15-74 – 1,000)

* All others 1% or less examples include enjoy life more, earn money, work more, continue same as last year.

To budget better

To save more

Shop around for everything

Reduce my debts

Put more money into my pension

Other*

33

22

19

17

3

6

%

Higher amongst C2DEs (36%)

Higher amongst 15-24 year olds (30%)

Higher amongst Munster inhabitants (24%)

Those in full time employment (27%)

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Making Complaints

* All other mentions less than 1% examples include: paying my mortgage, pay cuts, family members, losing jobs, not being able to afford to go to college, having to work

Not having enough money to meet my day to day expenses

Not being able to meet unexpected expenses

Not being able to save money for future needs

Losing my job

I feel financially secure and have no worries

Getting deeper into debt

All other mentions 1% or less

Biggest Financial Worry for 2011

(Base: All aged 15-74 – 1,000)

32

23

17

10

10

5

%

Higher amongst C2DEs (37%)

Higher amongst 35-44 year olds (29%)

Higher amongst 25-34 year olds (14%)

Higher amongst 55+ year olds (21%)

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Making Complaints

13%

78%

3%6%

Experiencing Any Financial Difficulties

(Base: All account/product owners)

Yes

Most likely:25-34 year olds (18%)

No

Credit Card (597)

%

Refused

Don’t Know 14%

76%

3%7%

Yes

Most likely:35-44 year olds (18%)

No

Personal Loan (529)

%

12%

77%

3%8%

Most likely:35-44 year olds (15%)

Mortgage (485)

%

Don’t Know

Refused

Yes

No

Don’t Know

Refused

() = June 2010

(79%) (75%) (80%)

(11%) (14%)(8%)

(10%)(8%)

(11%)(1%)

(1%)(2%)

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Making Complaints

In Order to Make Ends Meet

(Base: All aged 15-74 – 1,000)

Cut back on spending

Use money from savings/investments A/C

Get a job/second job

Borrow from family/friends

Claim social welfare benefitUse money available in Current A/CTake out a loan/extend existing one

Use my overdraft

Not a problem

Rent rooms in home

Don't know

39

19

17

12

8

8

6

4

4

3

16

Higher amongst 55+ year olds (44%)

Higher amongst ABC1’s (24%) &55 year olds (27%)

Higher amongst 15-24 year olds (29%)

Higher amongst 15-24 year olds (20%)

Higher amongst part time employed (13%)

Higher amongst 25-34 year olds (11%)

Higher amongst 45-54 year olds (9%)

Higher amongst 45-54 (8%)

# All others 3% or less

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Making Complaints

1 3 2 110

28

721

12

31

12

27

26

34

36

46

12

45

15

31

Nov/Dec-10 Jun-10 Nov/Dec-10 Jun-10

Economic Outlook – I

(Base: All aged 15-74 – 1,000)

Strongly agree (5)

I am more relaxed about spending money than I was six

months ago

Ireland will be through the worst of the recession in 12

months time

Agree (4)

Neither/nor (3)

Disagree (2)

Strongly disagree (1)

% %% %

Mean Score: 1.9 2.8 1.9 2.6

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Making Complaints29

13 6 6

4360

2332

18 21

3939

5

1918

3 113

57

Nov/Dec-10 Jun-10 Nov/Dec-10 Jun-10

Economic Outlook – II(Base: All aged 15-74 – 1,000)

Strongly agree (5)

As a result of the recession I will continue to shop around for better deals even when the economy has

settled

Agree (4)

Neither/nor (3)

Disagree (2)Strongly

disagree (1)

%%% %

I will focus less on acquiring possessions and more on

having memorable experiences such as holidays

Mean Score: 3.9 3.8 2.9 3.2

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Making Complaints

2112 18

4454

30

21 24

25

11 7

21

3 3 6

Nov/Dec-10 Jun-10 Nov/Dec-10

Economic Outlook – III(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

Agree (4)

Neither/nor (3)

Disagree (2)

Strongly disagree (1)

% % %

I am constantly looking for better value and am switching providers

regularly to achieve this*

Mean Score: 3.7 3.33.7* New Statement

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Making Complaints

One Word to Describe: Ireland Right Now

Nov/Dec 2010

June 2010

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Making Complaints

One Word to Describe: Ireland in 12 Months Time

Nov/Dec 2010

June 2010

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Making Complaints

One Word to Describe: How you Yourself Feel Right Now

Nov/Dec 2010

June 2010

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One Word to Describe: Your Future

Nov/Dec 2010

June 2010

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Making Complaints

3340

4240

4543

4043

2824

3629

5251

3741

5644

3527

3428

4944

1011

98

3529

3539

44

13

53

31

32

21

12

11

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

1015

2231

2027

910

6162

5258

1217

1615

Nov/Dec ‘10June 2010

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Making Complaints

Change in Behaviour as A Result of Recession – II(Base: All aged 15-74– 1,000)

Less%

The Same%

More%

3740

4042

4244

3738

5149

5249

6361

5552

4434

3631

3121

2118

78

2826

1814

911

23

1111

1210

77

3034

45

43

13

Never did it

1823

2123

2532

3839

813

1318

913

2526

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

Nov/Dec ‘10June 2010

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Making Complaints

Research Background and Methodology

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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

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Making Complaints

1728

4822

52

19

2816

1826

49

26

51

SEX AGE REGION SOCIAL CLASS

Profile of Sample

(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%