National Consumer Agency Market Research Findings Household Budgeting

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

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

Key Findings 3 • 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 prerecession. 31% are spreading their shopping across a number of shops more, while the same proportion (30%) are spending less on their groceries overall. Making Complaints

Household Income & Expenditure (Base: All aged 15 -74– 1, 000) 4 Income % Increased a lot (5) Increased a little (4) Expenditure % (1) (4) (6) (13) (36) Making Complaints Remained the same (3) (38) (31) Decreased a little (2) Decreased a lot (1) Don’t know 62% (23) (22) (6) (12) (8) 64%

One Word to Describe: Ireland Right Now 5 (Base: All aged 15 -74 – 1, 000) Making Complaints

One Word to Describe: How you Yourself Feel Right Now 6 (Base: All aged 15 -74 – 1, 000) Making Complaints

Economic Outlook – I (Base: All aged 15 -74 – 1, 000) 7 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 % % Strongly agree (5) Agree (4) 31% As a result of the recession I will continue to shop around for better deals even when the economy has settled % 38% Making Complaints 73% Neither/nor (3) Disagree (2) 38% Strongly disagree (1) 23% 6%

Economic Outlook – II (Base: All aged 15 -74 – 1, 000) 8 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 Strongly agree (5) Agree (4) Neither/nor (3) % % 22% 66% Making Complaints Disagree (2) 51% Strongly disagree (1) 10%

Spending Thrift (Base: All aged 15 -74– 1, 000) 9 Wave 5 2010 Wave 4 2009 Strongly Disagree (2) (1) (4) The recession has focused me on thinking carefully about what and when I buy (72) (74) (67) (69) The recession is a good opportunity to pick up bargains in the sales Making Complaints (68) (69) I am consciously trying to buy fewer things nowadays (67) I am putting off buying large spend items until the current situation improves (50) When shopping I budget for every cent I regret the amount of money I have spent on stuff over the last few years Neither/ Nor /DK Strongly Agree (5) (36) (39) 18 16 21 20 15 15 20 19 23 22 22 22

Coping Behaviour (Base: All aged 15 -74– 1, 000) 10 Wave 5 2010 Wave 4 2009 Strongly Disagree (1) (2) (4) (61) I am actively seeking out cheaper ways of living (63) Making Complaints I would prefer to switch between brands of things I buy than do without them at all (59) (61) 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 Strongly Agree (5) (56) 25 26 24 24 24 25 (35) (38) 27 28

Lifestyle (Base: All aged 15 -74– 1, 000) 11 Wave 5 2010 Wave 4 2009 Strongly Disagree (1) Despite the recession I feel I am enjoying life as much as ever (2) (4) Neither/Nor /Don’t know Strongly Agree (5) (70) (67) 18 19 (67) (66) 18 21 Making Complaints 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 (48) (53) 26 27 (50) (52) 25 24

Change in Behaviour as A Result of Recession – I 12 (Base: All aged 15 -74– 1, 000) Less % The Same % More % Budgeting for household expenses Collecting & using coupons when buying things Using loyalty scheme points when making a purchase Making Complaints Buying goods on special offer Using online price comparison sites Buying items online Preparing home-made meals from scratch Eating takeaway foods Never did it 15 31 27 10 62 58 17 15

Change in Behaviour as A Result of Recession – II 13 (Base: All aged 15 -74– 1, 000) Less % Spending time ‘bargain hunting’ when buying groceries Spreading your shopping across a number of shops Planning your weekly shopping in advance The Same % More % Never did it 23 23 Making Complaints Buying grocery items in bulk 32 Spend on groceries overall 13 Buying private label/own label goods 18 Buying Irish produced goods 13 Buying eco-friendly goods 26 39

One Word to Describe: Ireland in 12 Months Time (Base: All aged 15 -74 – 1, 000) 14 Making Complaints

One Word to Describe: Your Future (Base: All aged 15 -74 – 1, 000) 15 Making Complaints

Research Background and Methodology 16 Nov/Dec 2007 Aug 2008 Nov/Dec 2008 Benchmark Wave 1 Wave 2 May/June 2009 Nov/Dec 2009 Making Complaints June 2010 Wave 3 Wave 4 Wave 5 Current Wave • 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. •

Profile of Sample (Base: All aged 15 -74 – 1, 000) 17 % 15 -24 % % Married Male 25 -34 % ABC 1 Making Complaints Living as Married 35 -44 C 2 DE Female 45 -54 Single 55+ Wid/Div/ Sep Not stated MAIN GROCERY SHOPPER F 50+/ F 50 Not stated Yes No