1. Community Perceptions of the Vet Industry Ref: 4730 Summary Presentation Presented by Michael Trigwell Taverner Research 10 April 2014

2. Project overview Sample details Vet usage Perceptions of the vet industry Pet insurance Media exposure Fee comparisons Summary direction

3. 3 sample groups 607 pet owners 108 previous pet owners 107 never owned a pet

4. SAMPLE DETAILS Location% NSW & ACT 22 VIC & TAS 34 QLD 21 SA 11 WA 11 NT 1 Gender Age% 18-247 25-3420 35-4423 45-5421 55-6418 65+10 Remoteness of Respondents Education Level% University or higher 36 TAFE/vocational/trade cert. 32 Year 12 18 Year 10 12 No formal qualification 2

5. SAMPLE DETAILS Children Aged Under 18 in the Household Adults in the household% Only 118 Two58 Three14 More than three10 Government AssistanceAbility to Fund Unexpected Expense Household Income After Tax Income Spent on Housing

6. pet ownership

7. NUMBER OF PETS OWNED more than half of pet owners own more than one pet Multiple pet ownership is lower in capital cities 49% than other locations 70%

8. TYPE OF PETS OWNED 95% of all pet owners own a cat or a dog Significantly higher amongst 18-24 year olds 23% than others 7%

9. vet usage

10. 4%4% of all pet owners have NEVER* used a vet 18 % of all pet owners have not used a vet in the past 12 months* * 14% for Dog owners up to 32% amongst small warm blooded animal owners * 1% for Dog owners up to 11% amongst small warm blooded animal owners

11. 77 % Vet Usage Services Used Proportion of pet owners who have used a service on at least one of their pets For vaccination or booster shot 63 % To be de-sexed 57 % For a general check-up Frequency of Vet Usage Number of times pet owners have visited a vet in the past 12 months. Key information about usage of vets To implant an ID chip To treat an injury 45 % 14 % To treat diarrhoea or vomiting 13 % When the pet was listless & not eating properly for more than a week 9%9% Other Regular Vet Usage

12. 62 % of all pet owners identified at least one barrier to taking their pet for an annual check up

13. TOP 5 BARRIERS TO VET USAGE FOR AN ANNUAL CHECK UP 58 % Cost of vet fees 23 % Expectation of exposure to ‘upselling’ 21 % Cost of pet health insurance 16 % Not having pet health insurance 15 % Ability to access at convenient times

14. perceptions of the vet industry

15. Proportion Who Said They Trust Almost All or Most Compared to Other Professions Vet Fees Are… Professions Vet Fees are Compared To

16. OVER SERVICING/UPSELLING 20 % All the time or quite often 39 % Not very often

17. PERCEPTIONS OF THE VALUE OF UPSELLING RECOMMENDATIONS no ‘value’ according to 53%

18. pet insurance

19. 78 % aware 12 % uptake Amongst all pet owners (15%) amongst those aware

20. SEGMENTS MOST LIKELY TO HAVE TAKEN UP PET INSURANCE 21 % Frequent users (3+ times per year) 35 % Exposed to ‘Choice’ articles

21. media exposure

22. Media Coverage Subscriptions Proportion of pet owners who subscribe or read Choice 8%8% Of total pet owners exposed Exposure to Vet Service Articles Exposure and impact Radio and TV Exposure 56 % Of subscribers and readers Type of Articles About Vets General coverage of topics in Choice that pet owners who recall seeing articles about vets can recall N=49 49 % Articles about over-servicing 37 % Articles critical of cost of vet fees 29 % Articles about the regulation of vet fees 18 % Negative 28 % Positive

23. fee comparisons

24. Considering the Training Required Vet Fees Compared to Doctor Fees Are… Considering the Investment in Premises & Equipment Vet Fees Compared to Doctor Fees Are… Considering How Much I Enjoy and Care About My Pets Vet Fees Seem…

25. summary

26. Summary FINDING Pet owners are making a lot of decisions themselves about the seriousness of the illness or injury to their pet. This is often due to not wanting or being able to afford the “un-necessary expense”. However when the illness is deemed serious, the love for the pet ensures treatment is sought. IMPLICATION Some pets may not be getting the treatment that they require as pet owners try to self diagnose due to concerns about vet fees.

27. Summary FINDINGS Concern about vet fees is widespread in that there is no single group who are more concerned than other groups about this. It’s not directly related to household income or disposable income. This also isn’t related to being a pet owner or not, it’s a community view. IMPLICATIONS Pet owners will still pay vet fees, when the deem it necessary, however they are questioning the value of some fees and concern exists about ‘over- servicing’ in the industry.

28. Summary FINDING Pet owners who have a regular vet or vet practice they visit place greater trust in the industry. IMPLICATION Customer relationships are crucial in assisting overcoming any negative perceptions about vet fees.

29. Presented by Michael Trigwell Taverner Research 10 April 2014 * All image rights owned by Shutterstock “I wanted to wait a day and see what happens as long as I knew it wasn’t dangerous, I would never put my animals in any danger”