28 June 2002

1. Oftel’s research programme has developed over the last two to three years and is used across the full range of Oftel’s work. Its main purpose is to provide a better understanding of consumer behaviour and attitudes, which can be used in a variety of ways. The purpose of these guidelines is to set out the ways in which research can be used to assist Oftel’s work and decision making.

2. Any group of consumers can be examined from the entire population in a country to a very specific segment eg users of a particular product of service, of specific age or income groups.

3. Market research can contribute to some or all of the main stages of a project, programme or case (identified below), and used in conjunction with other sources of information can assist in ensuring all decisions are soundly evidence-based.

4. Market research can provide evidence from two main perspectives:

• Customers – residential consumer and business behaviour and attitudes
• Suppliers - market behaviour – eg what advice and information people are being given, how are telcos behaving

Figure 1 Key stages of a project, programme, case where market research can contribute

Step 1: Market/area definition and sizing

How many consumers are using particular services, products, suppliers?
Are consumers substituting services to the extent that prices are constrained?

Examples

Research can be used in most effective competition / other areas being reviewed or examined. And in Compliance casework, whether the complaint received is typical of what is happening in the market.

Step 2: Assessing level of competition, demand for and access to services

Which consumers are using which services, products, suppliers?
What is preventing them making greater use of the choice available?
Which consumers are paying more than they need to – do they know / care?

Examples

Research was used to examine the barriers to using indirect access suppliers and the potential likely use of new suppliers entering the market.
Research was used to assess the level of detriment in the mobile market.
Research can be used to establish whether there is a need/demand for consumer information (eg CPI leaflets, Telecoms Advice and Phonebills websites, Oftel’s consumer leaflets), and who the likely target audience is for any information.

Step 3: Developing policy options

Are any changes needed to the market/area of investigation? Are any new policies or changes to existing policies needed? How could the market/service/area otherwise be improved?

Examples

Research was used to examine whether consumers understood and were content with current numbering systems eg premium rate services, and pre-allocation portability system for special rate numbers.
Research can be used to determine what consumer information consumers want, and where and when they want this information.

Step 4: Testing policy proposals prior to introduction

How might consumers react to changes in the market? Who would use new service / supplier? What might assist it succeed, why might it not succeed?

Examples

Research was used to establish that consumers were supportive of the proposed changes to Directory Enquiries numbering and the abolition of 192.
Research was used to establish the likely take-up of alternative suppliers following the introduction of cost based access, and the need to maintain a price cap until such time as competition was established.
Research can be used to evaluate whether the content, format and design of any consumer information is appropriate, easy to understand, useful etc.

Step 5: Evaluating and monitoring impact of policies once introduced

Has the policy had the intended impact on the market? Benchmarking and measuring improvements over time.

Examples

Research is used to assess the success of number portability, whether people are using it, barriers to the process, the advice given by the industry.
Research is used to monitor BT’s compliance with revised rules for marketing their Internet services.
Research can be used to evaluate whether consumer information/initiative has been successful eg whether it was used / useful, whether consumer behaviour / awareness changed as a result of the information.

A variety of research techniques are used to gather and analyse this information. Depending on the amount and type of information required, results can be provided in as quickly as a week.

Surveys (phone, face to face, postal, Internet) – samples can be drawn from the whole population, in any country, to specific subgroups eg Internet customers, payphone users, those calling specific destinations, homes without a fixed phone.

Discussion groups and depth interviews – explore topics in considerable detail, diaries of individual behaviour, generating ideas to assist policy development.

Mystery shopping – is the industry actually doing what they tell us they’re doing? What are consumers being told about products, services, suppliers?

Oftel market research programme: further contacts

Karen Metcalfe 020 7634 8918

Lisa Etwell 020 7634 8741