National Consumer Agency Market Research Findings: Household Budgeting and Impact of the Recession October 2010 Research Conducted by

2 Making Complaints  Key Points  Household Budgeting and Impact of the Recession  Research Background & Methodology  Profile of Sample Table of Contents

3 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.

4 Making Complaints Household Income & Expenditure (Base: All aged 15-74– 1,000) 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) (13) (38) (23) (12) (8) 64%

5 Making Complaints One Word to Describe: Ireland Right Now (Base: All aged – 1,000)

6 Making Complaints One Word to Describe: How you Yourself Feel Right Now (Base: All aged – 1,000)

7 Making Complaints 6% Economic Outlook – I (Base: All aged – 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)

8 Making Complaints Economic Outlook – II (Base: All aged – 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%

9 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 (2) Strongly Disagree (1) (74) (69) (67) (50) (39) Wave Wave (72) (67) (68) (67) (50) (36)

10 Making Complaints 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 (61) (4) Strongly Agree (5) (2) Strongly Disagree (1) (63) (59) (61) (55) (56) (35) (38) Wave Wave

11 Making Complaints 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 (67) (66) (53) (52) (4) Strongly Agree (5) (2) Strongly Disagree (1) (70) (50) (48) (67) Wave Wave

12 Making Complaints 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

13 Making Complaints Change in Behaviour as A Result of Recession – II (Base: All aged 15-74– 1,000) Less % The Same % More % Never did it 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

14 Making Complaints One Word to Describe: Ireland in 12 Months Time (Base: All aged – 1,000)

15 Making Complaints One Word to Describe: Your Future (Base: All aged – 1,000)

16 Making Complaints Amárach Research conducted the research by means of face-to-face interviewing with 1,000 people between the ages of In all, 6 comparable “Waves” of Market Research have been completed since November / December 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 Research Background and Methodology Nov/Dec 2007Aug 2008Nov/Dec 2008 May/June 2009Nov/Dec 2009June 2010 Benchmark Wave 3Wave 4 Wave 1Wave 2 Wave 5 Current Wave

17 Making Complaints Profile of Sample (Base: All aged – 1,000) Male Female % % % % Married Living as Married Single Wid/Div/ Sep ABC1 C2DE F50+/ F50- MAIN GROCERY SHOPPER YesNo Not stated