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

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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

22

26

9

5 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: Ireland Right Now

(Base: All aged 15-74 – 1,000)

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Making Complaints

One Word to Describe: How you Yourself Feel Right Now

(Base: All aged 15-74 – 1,000)

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Making Complaints

3 613

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 2010

Wave 4 2009

(72)

(67)

(68)

(67)

(50)

(36)

4548

4647

4650

3938

3134

2225

2726

2122

2219

2829

1916

1414

7

7

9

9

15

13

11

11

23

21

312712

11

7

4

2

3

3

2

2

3

3

3

10

Making Complaints

44

46

46

48

41

43

27

30

17

17

13

13

14

13

8

827

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 2010

Wave 4 2009

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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 2010

Wave 4 2009

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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

One Word to Describe: Ireland in 12 Months Time

(Base: All aged 15-74 – 1,000)

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Making Complaints

One Word to Describe: Your Future

(Base: All aged 15-74 – 1,000)

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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 AGE

MARITAL

STATUS

SOCIAL

CLASS

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