Non-user decision-making

Half of consumers (51 per cent) have not used a PCW in a regulated market (this includes non-users of PCWs) in the course of the last two years. Almost half of these consumers have purchased or renewed home insurance (45 per cent) or car insurance (44 per cent) in the last two years. More than one-third (38 per cent) have bought or renewed a gas or electricity supply, and a similar proportion (36 per cent) have bought or renewed mobile phone contracts.

Figure 5.8: Products bought or renewed in the last two years

The consumers aged 30-44 (45 per cent) are much more likely to have bought or renewed gas or electricity than consumers in the other age groups, especially compared to the young non-users (32 per cent for 18-29 year olds). The young non-users are most likely to have renewed their mobile contracts (60 per cent) whilst the over 60 year old non-users are most likely to have renewed or purchased home insurance (58 per cent) compared to any other age groups.

Non-users in socio-economic grades A, B, C1 and C2 are significantly more likely to have purchased car insurance in the last two years, with between half and two-thirds having done so than those in grades D and E, where fewer than three in 10 report this kind of purchase.

Information sources used

Non-users of PCWs don’t typically line products up next to one another as PCW users are able to do on-screen, but are still likely to make some kind of active comparison. These consumers express a wish to talk to ‘a real person’ via conversations in shops and phone conversations with providers. Nearly half of consumers (44 per cent) seek information and recommendations from friends, family or neighbours. Almost a third (29 per cent) telephone a number of providers, while around one quarter (26 per cent) rely on advertising. Some 15 per cent look at ‘Best Buy’ tables in newspapers or magazines

Interestingly, 15 per cent of non-users in the quantitative survey ask their family member or friend to use a PCW on their behalf. Some consumers in the qualitative research indicated a preference simply to have others to make comparisons on their behalf. Some older

consumers, in particular, are accustomed to receiving help from children and other family members, and do not see this task as being much different.

Figure 5.9: Information sources used in decision-making

Other information sources cited by consumers include Yellow Pages, other websites and online sources, newspapers, visits to shops, brokers or door-to-door salesmen.

‘I guess I would probably ask for someone’s advice or I would probably go around and see if I see any offers. If I see something interesting, I might go in there and ask. Maybe if it was a bigger decision it would take me a few days more. I would just go to a few places when I have the time and make a decision then.’

Midlands, SEG C1, 18-29, non-user of PCWs

‘Often it is triggered by newspapers. We read two newspapers each day. We live near the shops so we would see if there is a special offer… I would consult the family about things if it is an important step or something new I need to look for.’

South East, SEG D, 75+, non-user of PCWs

The younger non-users of PCWs are more likely to rely on family and friend

recommendations than other age groups (55 per cent of 18-29 year olds and 53 per cent of 30 -44 year olds). Non-users in the South West of England are less likely (15 per cent) to phone the providers than consumers in the rest of the country.

There are also some differences in the way different sources of information are used for buying different services. Non-users rely on recommendation much more when buying broadband services (57 per cent), TV (53 per cent) and mobile services (49 per cent) compared to insurance purchases (37 per cent). More people also use adverts for information when buying broadband (36 per cent) or TV services (35 per cent).

Recommendations are also overall the most influential of all sources (29 per cent) for their influence in final decision-making. Only one in six non-users of PCWs (16 per cent) say that they are most influenced by calls to providers and even fewer (12 per cent) are swayed by advertising.

Figure 5.10: Most influential information used in decision-making

Non-user perceptions about getting a good deal

The majority of consumers (87 per cent) who don’t use PCWs are confident they are getting the best deal for their needs without one. The over 75 year olds and the youngest age groups of 18-29 year olds are most likely to think they have got the best deal; 91 per cent and 92 per cent respectively are either very or fairly confident about this.

Figure 5.11: Confidence in getting the best deal

The majority of consumers (76 per cent) purchasing or switching electricity or gas are confident that they have got the best deal, whereas nine out of 10 (90 per cent) of those buying insurance are very, or fairly confident they are getting the best deal.

When asked to compare themselves to PCW users, nearly two fifths of non-users (38 per cent) believe they actually get a better deal offline, while almost a third (29 per cent) think they get the same deal that those using PCWs do. Only a minority (nine per cent) think they might be losing out by not using PCWs, and actually getting a worse deal.

Figure 5.12: Whether PCWs are perceived to give a good deal

Some non-users are confident about their ability to negotiate the best deals by themselves while others think there is very little difference between the deals that are available on- or offline. A few also believe there is little point in switching providers because this will give only short-term savings.

‘Simply because I'm capable of deciding what I like and what I don't like, and am also capable of negotiating the best deal by myself.’

England, SEG B, 60-74, never used PCWs

‘Because if you get it cheaper for one year, the next year it goes up to exactly the same and you end up where you were at the start anyway.’

England, SEG B, 75+, never used PCWs

Reasons for not using PCWs

A key reason why non-users don’t use PCWs is a preference for making purchases in a way that feels more direct. Just under a quarter (23 per cent) of non-users say they don’t use PCWs because they prefer to talk to someone in person.

A minority have negative experience or perceptions of PCWs: 15 per cent are put off using sites because they think they are too complicated to use. Only a small proportion (three per cent) say they don’t use these sites because of negative feedback from other people.

Some simply have no need for PCWs services: one-fifth (20 per cent) are not looking to switch their provider while a minority (16 per cent) are simply not interested in the products PCWs compare.

Other reasons for not using a PCW include not having a computer or not wanting to use one, not having the need to use them or to compare prices, and a perception that the sites only give price-related information and no other details about products or services.

‘I've never made a big enough purchase to care.’

England, SEG C2, 18-29, never used PCWs

‘I like to stick with what I know and go on personal recommendation.’

England, SEG C1, 45-59, never used PCWs

Figure 5.13: Reasons for not using price comparison websites

6. Consumer trust and understanding of price comparison websites’ operating models

This chapter outlines the key findings related to consumer trust in price comparison websites (PCWs) and perceptions of reliability and accuracy of the information they contain. It also outlines their awareness of PCW accreditation schemes and the extent to which they would value and be influenced by them in their selection and use of PCWs.