Comparing Prices and Comparison Sites 2012

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Comparing Prices and the use of Comparison Sites by Grocery Shoppers in the UK

SAMPLE EXTRACT

Evolution Insights LtdProspect House

32 Sovereign StreetLeeds

LS1 4BJTel: 0113 389 1038

http://www.evolution-insights.com

Evolution offer a range of products & services for clients in the field of shopper research:-

• Off-the-shelf research

– Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery

• Insight Plus

– Insight Plus offers your business the opportunity to engage in any of our regular shopper research projects in advance of publication, tailoring the scope to suit your needs

• Bespoke Consulting

– As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects – helping to better inform and shape any further research requirements.

Evolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke research for manufacturers, retailers and agencies.

Further information is available at our website http://www.evolution-insights.comVisit and sign up for Reflections, our free quarterly newsletter offering analysis and commentary on topical issues

About Evolution Insights

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As a leading publisher of shopper research, we are ideally placed to offer your business actionable shopper insight.

Our research and analysis helps clients develop targeted shopper marketing initiatives designed to influence shoppers at the point of purchase.

We use a range of research methodologies to discover genuine insights. Our research incorporates a broad spectrum of robust qualitative and quantitative research techniques.

www.evolution-insights.com


Contents

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Figures and graphs 5 Health & Beauty and Wines 43Companion feature 44

Key findings and executive summary 8What this report will do for you 9 MySupermarket: Perceptions and usage 45Gender indices and Likert scales 13 Introduction 46

Awareness and usage 47Food and grocery shopping online: Overview 14 Shoppers opinions 49The UK market 15 Purchasing behaviour 51Size, growth and forecast 16 Summary 53Retailer shares 17The Rise of Generation Y 18 MySupermarket: Test 54

Introduction 55Price comparisons 19 Outline 56Introduction 20 Differences 57Income 21 Examples of Common Product Issues 59Time vs. Savings 22 Summary 62What shoppers compare 23When shoppers compare 26 Supermarkets’ Own Comparison Systems 63How shoppers compare 29 Introduction 64Summary 32 General shopping behaviour in-store 65

General shopping behaviour online 66MySupermarket: Overview 33 Price as a driver to supermarket choice 67Introduction 34 Driver to store choice apart from location 68Comparison features 36 How do shoppers know their supermarket offers cheaper prices? 69Split Basket 37 How do shoppers know their supermarket offers better value for

money? 70Brand Stores 38 How do shoppers know their supermarket offers better quality

products? 71Cashback 39 Tesco Price Check 72Recipes 40 Asda Price Guarantee 73Multi-media 41 Sainsbury’s Brand Match 74Health Checker 42 Waitrose’s Brand Price Match 75


Contents

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Ocado’s Tesco Price Match 76Supermarkets’ Own Systems Summary 77Tesco Price Check Usage 78Asda Price Guarantee Usage 79Sainsbury’s Brand Match Usage 80Waitrose and Ocado Usage 81Summary 82

Comparison Apps 83Introduction 84MySupermarket 85RedLaser 86Supermarket Own Apps 87Penetration of food and grocery apps for smartphone owners 88Penetration of mySupermarket app for smartphone owners 89Use of smartphones for general price comparison 90Use of smartphones for price comparison for food and grocery 91Use of internet for price comparison for food and grocery 93Shopping lists 94Summary 95

Methodology 96

Glossary 100


Figures and graphs

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Figures and graphs


Page Type Title

16 Graph UK online food, drink and grocery market expenditure estimates (2006-2015f)17 Graph Online retailer usage penetration18 Graph UK population age profile, 2011 estimate and 2015 projection21 Graph Average UK Household Income Tracker23 Graph I compare the prices of each food or grocery item I buy24 Graph I only compare the prices of larger value food and grocery items25 Graph I compare the total final price of my shop rather than individual items26 Graph I compare the cost of my shopping when I shop in-store27 Graph I compare the cost of my shopping when I shop online28 Graph Demographic split of ‘I compare the cost of my shopping when I shop in-store’28 Graph Demographic split of ‘I compare the cost of my shopping when I shop online’29 Graph I compare the cost of my shopping without using mySupermarket30 Graph I have a general idea how much items should cost, and compare prices against this31 Graph I trust price comparison systems to be correct47 Graph Awareness and usage of mySupermarket.com47 Graph Demographic profile of those who use mySupermarket often48 Graph Online site most frequently used48 Graph Demographic profile of those who use mySupermarket as their most frequent online site49/50 Graph MySupermarket shoppers opinions51 Graph Shoppers reasons for not using mySupermarket.co.uk to purchase items57 Figure Test – Differences59 Figure Test – Examples of Common Product Issues65 Graph Retailer share of main shop in the last month66 Graph Retailer share of online shop in the last month67 Figure Price as a driver to supermarket choice68 Graph Driver to store choice apart from location69 Graph How do shoppers know their supermarket offers cheaper prices?70 Graph How do shoppers know their supermarket offers better value for money?71 Graph How do shoppers know their supermarket offers better quality products?

Figures and graphs


77 Figure Supermarkets’ Own Systems Summary78 Figure Tesco Price Check Usage79 Figure Asda Price Guarantee Usage80 Figure Sainsbury’s Brand Match Usage81 Figure Waitrose Brand Price Match Usage81 Figure Ocado Tesco Price Match Usage88 Graph Penetration of food and grocery apps for smartphone owners89 Graph Penetration of mySupermarket app for smartphone owners90 Figure Use of smartphones for general price comparison91 Graph Compare the price of a product to other supermarkets92 Figure Compare the price of a product to other supermarkets while you are actually in the supermarket93 Graph Compare the price of a product to other supermarkets at any time using the internet94 Graph Smartphone owners awareness of using their phones to scan items to create a shopping list94 Graph Demographic split of those who use their smartphone to scan items to create a shopping list


Key findings and executive summary – What this report will do for you

This report will:

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Give a summary of price comparison apps available for smartphones and the usage of food and grocery apps

specifically.

Give a detailed overview of supermarket’s own price comparison systems and how these are used by shoppers.

Outline the relationship between price, quality and value for money. Which of these is the biggest driver for retailers

and how shoppers know they offer this?

Give you an understanding of what, when and how shoppers compare prices whilst shopping for food and

groceries.

Provide a overview of mySupermarket’s current proposition, including its newest and beta features.

Consider the usage of mySupermarket, including penetration and the attitudes and behaviours of shoppers

whilst they are using the site.

Highlight issues found from first hand tests of mySupermarket.


Price comparisons – Time vs. Savings

Is the time spent comparing prices worth the potential savings?

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Time SavingsVs.It is important that the shopper feels that the time they invest in comparing prices is worth the potential savings that they could make. This is especially true for online shopping, as shoppers who choose this method of shopping primarily do so for its convenience. For some shoppers, any wasted time spent comparing prices negates the benefits of savings made. This is especially true for shoppers who, when shopping in-store, choose to travel further in order to take advantage of the best deals for them.

I don’t use my nearest supermarket, I go to another one because of their offers


Price comparisons – When shoppers compare

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n=1007

40.0

33.0

27.0

I compare the cost of my shopping when I shop in-store

Agree

Neither agree nor disagree

Disagree

Shoppers are far more likely to compare the cost of their food and grocery shopping whilst shopping

in-store than online.


Price comparisons – Summary

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What?Shoppers are slightly more likely to compare the cost of individual food and grocery items, although some shoppers also report comparing large value items only or the total cost of a shopping trip. There is no general behaviour when it comes to what food and grocery prices shoppers compare.

When?Price comparisons are, however, most likely to occur when shopping in-store rather than online. Online shopping is chosen for its convenience, and taking time to compare prices goes against this key driver.

How?Experienced primary food and grocery shoppers are most likely to have a general idea of the average price they expect to pay for items. They compare prices they are faced with against this knowledge, rather than actively seeking out current prices across different retailers, as this is quicker and easier for shoppers.


MySupermarket: Overview – Introduction

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MySupermarket.co.uk was launched in 2006 allowing shoppers to compare prices across the largest grocery and health and beauty sites in the UK, ensuring that they get the best possible value. Importantly, mySupermarket is completely independent from the retailers featured on the site.

Two thirds of shoppers think that online shopping enables them to maintain control

of what they put in their basket, helping them keep track of what they spend. 60% of online shoppers agree that they are less

likely to make impulse purchases online than when in-store. And with nearly half

(47%) admitting to visiting two or more supermarkets a week in their quest for the

best value, mySupermarket offers both value in comparisons and control of online

shopping in one go.


MySupermarket: Perception and usage – Purchasing behaviour (2)

A lack of understanding of the site appears to be the main barrier to its widespread use. For example, shoppers do not know who will deliver their products, or if they can still get their loyalty

points. mySupermarket would find great benefit in making sure that shoppers are fully aware of their full range of services and the workings of their site.

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Shoppers reasons for not using mySupermarket.com to purchase items.

I always use my own supermarket

I forget that you can, and sometimes have problems logging in

I like a range of own brand products,

particularly Marks & Spencer

It does not cover the supermarket which I

use most.

I’m not sure if I can still get my Loyalty points

They do not appear to stock all items at

various supermarkets on their website. It is

limited I find.

I don’t think that they deliver in my area

They don't list prices for Morrison's, and I would never order

from Tesco or Asda.

I find it very difficult to use


Supermarkets’ Comparison Systems – Price as a driver to supermarket choice

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Excluding location, price is the biggest driver to supermarket choice. Looking at the breakdown of shoppers at their preferred supermarket, Asda is clearly ahead when it comes to cheapest prices, in the minds of their shoppers.

Prices Grocer 33 average price position

28.9% 1.2/5

19.2% 2.5/5

13.5% 2.8/5

6.5% 3.8/5

3.1% 4.8/5

Average ranking by price has been calculated across 12 weeks from The Grocer 33. In comparing these to shoppers opinions it is clear that shoppers are aware of the differences in pricing between supermarkets.

Tesco is my nearest supermarket but I shop at Asda because it is cheaper


Supermarkets’ Comparison Systems – Waitrose and Ocado Usage

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4.6%

trust

Waitrose Ocado

Less than half of all primary shoppers are aware of either Waitrose or Ocado’s Brand Price Match systems. Only a tiny percentage of shoppers actually trust these Brand Match promises. More effective advertising needs to be done to raise awareness and create trust for these systems.

n=1007

3.3%

trust

Comparison Apps – Use of internet for price comparison for food and grocery

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Compare the price of a product to other supermarkets at any time using the internet

Women are more likely than men to compare prices across supermarkets using the internet, as they are more cost-conscious.

Younger shoppers and higher social classes are also more likely to use the internet to compare supermarket prices, as these shoppers are the most technologically savvy and aware of the

opportunity to do this.

18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and over

AB C1 C2 DE0.05.0

10.015.020.025.030.035.040.045.0

5.9

34.6

27.5

17.0 15.0

0.0

41.1

29.1

17.212.6

%

Those who answer ‘Aware and use occasionally’ or ‘Aware and use often’ to ‘Compare the price of a product to other supermarkets at any time using the internet.’

n=280

92

108

Methodology

17www.evolution-insights.com


Secondary and desk research

Preliminary quantitative survey

Main quantitative surveyFocus groups

Insights

• Evolution carried out a preliminary survey of around 100 shoppers to test questions for the main survey.

• Detailed secondary and desk research is conducted to define the topic area, macro drivers and trends, scope and examples within the research topic.

• Initial insights gained are used to help further design the main survey.

• A main survey is completed by at least 1,000 UK adults who are the primary household shopper for food & grocery.

• Focus groups are carried out to further enhance the secondary research and main quantitative survey.

• Comprehensive and detailed assessment of all the data received was then used to uncover insights.

• Throughout this process, primary research was supported by secondary research drawing on Evolution’s proprietary databases, national statistics, news and industry resources.

Methodology

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Evolution’s methodology


Methodology: quantitative research - survey

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Price comparisons using smartphones and the internet.

Usage of food and grocery apps, including price comparison apps

Opinions of mySupermarket shoppers

Awareness and usage of mySupermarket

Trust of supermarkets own comparison systems.

Usage of supermarkets own comparison systems in terms of checking receipts, receiving and redeeming vouchers

Awareness of supermarkets own comparison systems

Online retailer usage in terms of frequency and most regular

Drivers of retailer choice

Preferred retailer offline

Demographic profiling

Topics of questions in quantitative survey

• Detailed shopper insights were gained from a survey of 1,007 primary shoppers. The samples were fully representative of the UK population including teenagers aged 13-17.

• The survey contained 20 questions relating to topics outlined to the left – in addition to standard demographic profiling questions

• The questions were designed to give maximum insight into shopper’s motivation and behaviour

• Additional questions were asked to give further insights into general behaviour and attitudes into price comparisons.

• The survey was carried out during the week commencing 18th June 2012.


Focus Group Participants

Gender AgeSocio-economic

Number of children in household

Female 20-29 C2 2Female 30-39 D 3Female 30-39 C1 2Female 40-49 D 1Female 20-29 C2 1

• 2 focus groups was conducted on the 12th June 2012 with primary shoppers to gain further insight into comparison behaviour.

• The subjects covered were:-

– Price comparison usage– Different price

comparison behaviours– Supermarkets price

comparison systems– MySupermarket

Methodology: qualitative research – focus groups

List of focus group participants

Focus Group Participants

Gender AgeSocio-economic

Number of children in household

Female 20-29 AB 0Female 30-39 AB 0Female 30-39 C1 0Male 30-39 AB 0Female 20-29 C2 0

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Evolution Insights Ltd

Prospect House32 Sovereign Street

LeedsLS1 4BJ

Telephone: 0113 336 6000

e-mail: [email protected]

Web: http://www.evolution-insights.com

Company No. 07006001Country of Incorporation: United Kingdom

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