Consumers Switch Service Providers At A Higher Rate During Times Of Economic Instability
In times of instability, consumers are likely to switch service providers at a higher rate, according to new international research that considers the so-called ‘foresight effect,’ and how it influences consumers and their purchasing behaviour.
“We certainly concur as we notice a marked increase of insurance quote comparisons during challenging economic times versus the times during which the market is more stable,” explained Derek Wilson, Head of South Africa’s leading online insurance and financial services comparison website, Hippo.co.za. Especially since independent research indicates that one in two people could save hundreds of Rands per month* on their Car Insurance alone by comparing with Hippo.co.za.
Dr. Mignon Reyneke of the Gordon Institute of Business Science (GIBS) was recently quoted as saying that the ‘foresight effect’ comes into play when people are either optimistic or pessimistic about the future – such as the potential to get a higher-paying job or the likely onset of a recession. Positive expectations about the future cause consumers to favour remaining with their usual habits. Conversely, a negative view of the future causes people to try new products.
An interesting point highlighted in the research is that consumers exhibit this behaviour even when there is no change to the usual product or it’s pricing.
Data and analytics company Acxiom1 released a study in 2012 that clearly showed that consumers switch providers at a rate of 10-30% per year. Given the current state of flux in South Africa, it is easy to see why service providers will likely see a notable change in consumer purchasing patterns.
The good news for consumers is that shopping around to look for alternative providers for products like Car and Household Insurance, Medical Aid, Personal Loans, Life Insurance and more is now made easy with comparison websites such as Hippo.co.za.
Established in 2007, Hippo.co.za is South Africa’s leading comparison website that helps consumers save money by comparing a range of South African providers across financial products such as Car Insurance, Household Insurance, Life Insurance, Medical Aid and more. Hippo.co.za is free to use and saves consumers the time and hassle of shopping around for the best deal since the Hippo.co.za website instantly retrieves real-time quotes from the different providers using the latest Internet technology. One in two people could save hundreds of Rands per month* on their Car Insurance alone by using Hippo.co.za to compare before they buy or switch to a new provider.
Hippo.co.za makes money by simply charging its partners a fee when a customer chooses to find out more about their products. The results consumers see, and the order in which they are presented, are in no way influenced by the fee Hippo.co.za charges its partners or any other factors other than the price of the product being compared.
For more information, visit us on www.hippo.co.za, connect with Hippo.co.za on LinkedIn, http://www.linkedin.com/company/hippo-comparative-services-pty-ltd/, like us on Facebook, www.facebook.com/HippoSA, and follow us on Twitter @Hippo_co_za and YouTube, http://www.youtube.com/user/hippocompare.
Hippo Comparative Services (Pty) Ltd is an authorised financial services provider (FSP number: 16357).
Terms and Conditions apply.
*Based on 2015 independent market research conducted by Kaufman Levin Associates.
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