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Canny Consumers?

Are consumers standing up for their rights?www.consumercouncil.org.uk

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IntroductionConsumer proficiencyConsumers awareness of their rightsConsumers confidence in expressing their rightsConsumer adviceShopping onlineConsumer buying behaviourQuizConclusion www.consumercouncil.org.ukContents22

www.consumercouncil.org.ukIntroduction3Background reading: Refer to Canny Consumers? report page 12-183

The research looks at the knowledge, awareness and behaviours of consumers to determine current levels of consumer proficiency in Northern Ireland.

The findings from the report are used to guide future work for the Consumer Council aimed at:Raising consumers skills and confidence to make informed purchasing decisions;Protecting their hard-earned cash; andGetting the high standard of customer care they deserve.

www.consumercouncil.org.ukWhat the Canny Consumers? report is about and its aim?4Refer to Canny Consumers? report page 12-13 and page 5, paragraph 3. 4

www.consumercouncil.org.ukHow was the research conducted? Face-to-Face SurveyA market research company carried out a survey designed by the Consumer Council which was undertaken with 1,039 consumers at 50 sampling points, randomly selected across Northern Irelands wards, ensuring coverage across each of the 26 District Councils.

Consumer PanelsThe Consumer Council facilitated three consumer panels in Lisburn, Newry and Strabane. Participants were recruited by an external company and chosen to be representative of the Northern Ireland population in terms of its socio-economic groups, age and gender.

5Face to Face Survey

Methodology: Refer to Canny Consumers? report page 16.

Consumer Council Questionnaire: Refer to Canny Consumers? report appendix 1, page 60-63.

Demographics of the survey sample: Refer to Canny Consumers? report page 17-18.

Consumer Panels

Methodology: Refer to Canny Consumers? report page 18.

Definitions

Face-to-face survey: In a face-to-face survey an interviewer is physically present to ask the survey questions and to assist the respondent in answering them. http://www.wpi.edu/Images/CMS/SSPS/Doyle_-_Face-to-Face_Surveys.pdf

Wards: A division or district of a city or town, as for administrative or political purposes. http://dictionary.reference.com/browse/ward

Consumer Panel: A consumer panel is a pre-recruited group of consumers who have agreed to participate in market research to give opinions regarding various issues. www.authenticresponse.com/market-research.../consumer-panel

Socio-economic classifications: Refer to Canny Consumers? report page 18.5www.consumercouncil.org.ukActivity

In groups:- Identify who is a Consumer?- Define a Canny Consumer

6Who is a consumer?A person who has indicated his or her willingness to obtain goods and/or services from a supplier with the intention of paying for them.Someone who has purchased goods and/or services for personal consumption.http://www.foreign.gov.vc/index.php?option=com_content&view=article&id=25&Itemid=43

Additional GCSE education resourcesBeing a Consumer lesson plan. This can be located on the Consumer Councils website http://www.consumercouncil.org.uk/education/schools-and-colleges/gcse/

CONSUMER Whats in a name leaflet. The leaflet describes a consumer as anyone who buys or uses goods or services, either in the public or private sector, is a consumer of those goods and services. A hard copy can be requested from the Consumer Council.

Define a Canny ConsumerA canny consumer is a consumer who knows and exercises their rights and responsibilities. The consumer is aware of where to go for expert advice and has the ability to take reasonable steps to protect themselves from financial loss due to poorly informed purchases, unfair trading practices and scams.(Reference: Canny Consumers? report page 6)6

www.consumercouncil.org.ukConsumer Proficiency7Background Reading: Refer to Canny Consumers? report page 12-13. 7

www.consumercouncil.org.ukWhat is consumer proficiency? A term used to identify and describe an individuals:Knowledge about their consumer rights;Confidence to speak up when things go wrong with goods or services they have bought;Awareness of where to go for expert consumer help and advice; andAbility to take reasonable steps to protect themselves from financial loss due to poorly informed purchases, unfair trading practices and scams. 8Reference: Canny Consumers? report page 12.8

www.consumercouncil.org.ukThe importance of being a canny consumer An informed and confident consumer can save money and inconvenience by avoiding problems with goods or services and has the ability to resolve them quickly, if and when problems do arise. This has the potential to drive up business standards; rewarding those businesses that get it right and making it harder for less scrupulous or less customer-focused business. 9Reference: Canny Consumers? report page 12-139www.consumercouncil.org.ukActivity

Complete Student Questionnaire

Class discussion: What do you understand by the term Consumer Rights?

Group work:On a spider diagram, identify the rights and responsibilities associated with being an effective consumer.10ActionHand-out copies of the survey to each student to complete. Refer to accompanying lesson plan.

NB: The survey has been shortened to 5 questions. This will provide the pupils with an understanding of how the research was carried out in order to compile the findings within the report. It will also help set the scene for your lesson. The full version of the questionnaire can be located in the Canny Consumers? report page 60-63.

Extension ActivityAsk students to compile results and analyse findings from the completed surveys.

The following two slides will answer the class discussion and group work activities.10

www.consumercouncil.org.ukDefining the term Consumer Rights Consumer panel responsesWhen you pay for a service, you expect to get what you pay for.(Female, Lisburn)Its about entering into contracts.(Male, Lisburn)Its about the rights that you have when you buy something if theyre faulty.(Female, Newry)When you pay money what rights you hold on a product.(Male, Newry)11Talking PointThis spider diagram details consumer panel members responses when asked what they understood by the term.

Reference: Canny Consumers? report page 24.11

www.consumercouncil.org.ukRights and responsibilities of an effective consumer

12*The Shoppers Rights Cards are available to download from the Consumer Councils website or a hard copy can be requested.12

www.consumercouncil.org.ukConsumers Awareness of Rights13Background Reading: Canny Consumers? report page 19-24.13

Over half of participants felt very (9 per cent) or fairly well informed (43 per cent) about their rights as a consumer. This is a 17 per cent drop since 2007. www.consumercouncil.org.ukHow well informed do consumers feel about their rights?

14Refer to Canny Consumers? report page 19-21.

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www.consumercouncil.org.ukActivity Perception versus reality

ClassAnswer True or False to the following statements:15NB:This exercise will help students recognise that what a person perceives, may not be reality.The red line highlights the face of the young girl, which is what most pupils will see first. The blue line highlights the features of the old lady. Use the lines only if the class is stuck.15

www.consumercouncil.org.ukTrue or False: Consumer rights statementsIt is the responsibility of the retailer, rather than the manufacturer to respond to your complaint about faulty goods.As long as you have a receipt, you are legally entitled to a refund if you return non faulty goods.If you bought a TV for 200 using your credit card, you could claim compensation from the card company if the TV develops a fault.You can return a faulty item even if it has been used.Shops are legally entitled to display no refund signs.If a computer develops a fault after 18 months, the shop doesnt have to do anything if it is outside the warranty period.

16Talking PointPrevious consumer proficiency studies by the Consumer Council have always asked how well informed consumers feel about their consumer rights. In this research, the Consumer Council was keen to compare how well informed consumers really were by testing their knowledge with a series of consumer rights related statements.

ActionAsk each point individually and click to see if it is true or false.

NB: This exercise is to give pupils an idea of what the respondents had to answer in order to get a the percentages reflected in the next slide.

Refer to Canny Consumers? report page 21-24.16

www.consumercouncil.org.ukOutcomes of consumer rights statements17Consumer rights statementTrueFalseDont knowIt is the responsibility of the retailer, rather than the manufacturer to respond to your complaint about faulty goods.82%17%1%As long as you have a receipt, you are legally entitled to a refund if you return non faulty goods.67 %32%1%If you bought a TV for 200 using your credit card, you could claim compensation from the card company if the TV develops a fault.46%50%4%You can return a faulty item even if it has been used.90%9%1%Shops are legally entitled to display no refund signs.55%43%2%If a computer develops a fault after 18 months, the shop doesnt have to do anything if it is outside the warranty period.68%30%2%N=1,039Reference: Canny Consumers? report page 22.17

www.consumercouncil.org.ukConsumers confidence in expressing their rights18Background Reading: Canny Consumers? report page 25-26.18

Consumers confidence in expressing their rights

Consumers must have confidence as well as knowledge of their rights to ensure they speak up about faulty goods or poor service.Between 2003 to 2007, consumers confidence in expressing their rights rose significantly by 36 per cent. In 2011 there was a marginal decrease of 4 per cent.19Refer to Canny Consumers? report page 25.19

www.consumercouncil.org.ukWhich consumers are the most/least confident?

Most ConfidentLeast Confident20Talking Point

Most ConfidentLevels of confidence were highest amongst those aged 55-64 and 65+ and those consumers in socio-economic group AB.

Least ConfidentLeast confident in expressing their rights were those aged 25-34 and socio-economic group DE.

Reference: Canny Consumers? report page 26.

Definitions A Upper middle class, higher managerial, administrative or professional.B Middle class, intermediate managerial, administrative or professional.D Working class, partly skilled workers.E Those at the lowest level of subsistence, unskilled labour.

Reference: Canny Consumers? report page 18.20www.consumercouncil.org.ukActivity

In groups:

Make a list of the barriers that would prevent consumers from not speaking up and expressing their rights (i.e. being effective). 21AnswersDisability;Age;Ethnicity;Knowledge; andResources.

Additional GCSE ResourcesBarriers and Influences affecting consumer behaviour (PowerPoint)

Being a Consumer lesson plan

http://www.consumercouncil.org.uk/education/schools-and-colleges/gcse/21

www.consumercouncil.org.ukReasons why consumers who had a reason to complain did not do so

22i.e. barriers that prevent consumers from being effective.

Talking PointThe main reasons for the small number of consumers (N=17) who felt that they had reason to complain but did not do so included the fact that they were unsure of their consumer rights (7 out of 17), they didnt want the hassle/were too busy or felt that making a complaint would be a waste of time.

Reference: Canny Consumers? report page 36-37.22

www.consumercouncil.org.ukConsumer Advice23Background Reading: Canny Consumers? page 37-42.23

www.consumercouncil.org.ukSources of expert consumer advice

24Talking PointConsumers were asked to highlight the sources of expert advice they would use in the event they had a problem with goods or services they had purchased. Just over two-fifths (43 per cent) of consumers stated they would seek expert consumer advice from the shop/retailer/supplier where they had purchased the goods or services.

This is significant as it relies heavily on businesses ensuring that they and their employees are fully aware of consumer rights and best practice in terms of handling queries and complaints in a fair and consistent manner.

A further 20 per cent of consumers stated they would seek expert advice from advice centres such as Citizens Advice and independent advice organisations. Consumers aged 45-54 were more likely to go this route (31 per cent N = 158).

11 per cent of consumer suggested they would seek advice through the internet. This was most prevalent amongst those aged 16-24 (20 per cent N=158) and those in socio-economic group AB (17 per cent N=170). (AB Upper/Middle Class, managerial, administrative or professional.)

Worryingly, just over one-fifth (22 per cent) of consumers stated they didnt know where to go for expert advice in the event that they had a problem with goods or services. Uncertainty was highest amongst those aged 45-54 and those in socio-economic group DE. (DE Working class, partly skilled workers and lowest level of subsistence, unskilled labour.)

Reference: Canny Consumers? report page 37-39.24

www.consumercouncil.org.ukSources of general consumer advice

25Talking PointIf a consumer had an issue with goods or a service they had purchased, the internet at home/work and/or accessed via mobile phones (46 per cent) and advice centres were cited as being the two most popular sources for information relating to consumer rights in general.

Refer to Canny Consumers? report page 40-41.25

www.consumercouncil.org.ukA-Z Consumer Advice Handbook

This handbook provides a quick reference for consumers, organisations, staff and volunteers involved in advocacy, advice or information work.

It also provides information on general consumer rights and how to complain effectively.

A wide range of consumer organisations are also listed to provide more specialist advice. 26*The A-Z handbook is available to download from the Consumer Councils website or a hard copy can be requested.26www.consumercouncil.org.ukActivity

Logos

27ActionAsk the class to describe the support and information provided by these organisations.

NB: Refer to accompanying lesson plan, this will provide a synopsis of what each organisation does. 27

www.consumercouncil.org.ukShopping Online28Background Reading: Canny Consumers? report page 49-51.28

Levels of online shopping

Online shopping continues to rise amongst Northern Ireland consumers as the proportion of consumers who shop online daily or weekly has risen from 4 per cent in 2007 to 13 per cent in 2011. Levels of online shopping are likely to have risen as a result of increased broadband connection and greater levels of internet access. 29Reference: Canny Consumers? report page 49-50

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www.consumercouncil.org.uk

Who shops online?Highest levelsLowest levels30Talking Point

Highest levelsLevels of online shopping in 2011 were highest amongst those aged 25-34, where 58 per cent of this group shopped online at least once a month and those in socio-economic group AB (56 per cent). AB = Upper/Middle class, managerial, administrative or professional.

Lowest LevelsLevels of online shopping were lowest amongst older people aged 65+, where only 10 per cent of this group shopped online at least once a month and 82 per cent did not shop online at all. Also reporting low levels were those in socio-economic group DE where 24 per cent shopped online at least once a month and 57 per cent did not shop online at all. DE = Working class, partly skilled workers and those at the lowest level of subsistence, unskilled labour.

Reference: Canny Consumers? report page 51.30www.consumercouncil.org.ukActivity

Class Discussion:- Why do more people shop online?- What causes some people not to?

31AnswersWhy do more people shop online?Convenient;Lower prices and free delivery costs (if available);Time-saver (no need to queue, travel to and from shops);Ability to shop around more easily; andIncreased ownership of online applications (computers, tablets, smartphones).

What causes people not to shop online?Not enough income to own an online application or afford internet access;Lack of confidence and trust;Lower levels of IT literacy skills; andThey may prefer to see the product before purchase.

Reference: Canny Consumers? report page 51, paragraph 3.31

www.consumercouncil.org.uk

Online Shopping RightsGiven the increase in online shoppers, its more important than ever to raise consumers awareness of their rights.

In December 2011, it was estimated that online scams were costing shoppers 100 million a year.

The Online Shopping Tips leaflet identifies how consumers can shop safely on the internet in order to protect themselves from scams and other pitfalls. 32Refer to Canny Consumers? report page 50 and 51.

*The Online Shopping Tips can be downloaded from the Consumer Councils website and hard copies can be requested.32

www.consumercouncil.org.ukConsumer Buying Behaviour33Background Reading: Canny Consumers? report page 43-49.33

www.consumercouncil.org.ukConsumer buying behaviour prior to making a big/expensive purchase

34Talking PointWhat measures consumers undertake prior to making an expensive purchase:4 in 5 (77 per cent) of consumers would typically check the price of the goods or service against other providers to make sure they are not missing out on a deal (the high proportion shows how price-driven consumers have become in the current economic climate);30 per cent of respondents suggested they would typically check the returns policy associated with goods or service;Approximately 1 in 5 consumers (22 per cent) would check previous customer feedback;Checking the provision of after-sales care availability scored 18 per cent;Checking the terms and conditions (17 per cent);Availability of a secure payment facility (17 per cent); and5 per cent would check their consumer rights.

Reference: Canny Consumers? report page 43 and 44.

Safer Ways to Pay A Consumer Council guide to protecting your purchases and savingsThe guide provides information associated with different payment methods, identifies possible charges when making payments abroad and highlights potential problems when entering into a savings club, credit agreement or when buying goods and services without face-to-face contact. Furthermore, the guide advises consumers of what to do when leaving goods in for repair, buying an extended warranty and in the event of a company collapsing.

*The Safer Ways to Pay guide can be downloaded from the Consumer Councils website or hard copies can be requested.34

www.consumercouncil.org.ukHas the economic downturn changed consumers purchasing behaviour?

Just under two-thirds (64 per cent) of consumers suggested that, since the economic downturn, they had changed their consumer shopping behaviour, whilst 35 per cent stated they were continuing to purchase in the same manner, regardless of the economic downturn. 35Reference: Canny Consumers? report page 46.35

What consumers said Consumer panel responsesIm more likely to shop around for better prices e.g. car insurance. It is handier to stay with the same company, but you have to shop around.(Male, Lisburn)I use the computer more for price comparison websites. Everyone is looking for a bargain.(Female, Lisburn)If you get a bargain youre sharing (the source) with everybody because you know everybody is in the same boat.(Female, Strabane)36Refer to Canny Consumers? report page 48-49.

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www.consumercouncil.org.ukQuiz3737

www.consumercouncil.org.ukQuestion OneWhat is the report about and how was the research carried out?

The research looks at the knowledge, awareness and behaviours of consumers to determine current levels of consumer proficiency in Northern Ireland.

It was carried out by face to face surveys and consumer panels.3838

www.consumercouncil.org.ukQuestion TwoWhat is consumer proficiency? A term used to identify and describe an individual's:Knowledge about their consumer rights;Confidence to speak up when things go wrong;Awareness of where to go for expert consumer help and advice; andAbility to take reasonable steps to protect themselves from financial loss due to poorly informed purchases, unfair trading practices and scams. 39

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www.consumercouncil.org.ukQuestion ThreeWhy is it important to be a Canny Consumer? An informed and confident consumer can: save money;avoid inconvenience; andhas the ability to resolve problems quickly.

This has the potential to:drive up business standards; reward those businesses that get it right; and make it harder for less scrupulous or less customer focused businesses.

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www.consumercouncil.org.ukQuestion FourWhat are the barriers that prevent people from complaining?Unsure of consumer rightsCouldnt be bothered with the hassle or are too busyThought it would be a waste of timeToo embarrassed to complainUnable to access a source of advice

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www.consumercouncil.org.ukQuestion FiveName two organisations that would provide advice regarding mis-selling.

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Question SixWhich consumers are the most/least confident in expressing their rights?Most ConfidentAge group: 55-64 and 65+Socio-economic group: AB = Upper/Middle class, managerial, administrative or professional.

Least ConfidentAge group: 25-34Socio-economic group: DE = Working class, partly skilled workers and those at the lowest level of subsistence, unskilled labour.

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Question SevenWho shopped online the most and least?The MostAge group: 25-34Socio-economic group: AB = Upper/Middle class, managerial, administrative or professional.

The LeastAge group: 65+Socio-economic group: DE = Working class, partly skilled workers and those at the lowest level of subsistence, unskilled labour.

44NB: Specify what age group and socio-economic group. 44

www.consumercouncil.org.ukQuestion EightHas the economic down turn affected consumers shopping behaviour? If so, how?Yes.

More consumers are using price comparison websites;Bargains are being shared by word of mouth; andConsumers are shopping around more to get a better deal.

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www.consumercouncil.org.ukConclusion4646

Report FindingsConsumer skills and confidence levels have improved since 1999 when the Consumer Council first started measuring proficiency levels. However, the same findings also indicate that there is still much more to be done.

Key groups including those living on a low income, older and younger consumers, lack awareness of their rights and dont know where to go for consumer advice.

There is a growing number of online shoppers. Whilst they benefit from choice and the ability to shop around more effectively, they are at risk if they fail to take steps to protect themselves against some common pitfalls.

47Refer to Canny Consumers? report page 4-5.47

Are Consumers Canny?

Are consumers standing up for their rights?

48ActionFinal question to class. 48