The mobile phone market is the most dynamic market. Changing technology is a key factor in driving consumers to switch enabling them to take advantage of new features or services. Although, there is a bewildering amount of products and packages, consumers tend to ask family, friends and colleagues about their experiences. Consumers have a strong loyalty to their banks and fear that switching could lead to unwanted hassle with direct debits and standing orders going awry. However, there is growing evidence that high levels of loyalty are increasingly being undermined by branch closures.
Many people consider switching their mortgage but few actually do.
Consumers like the idea of switching mortgage providers because of perceived high savings but the majority are deterred by early redemption penalties, high legal costs and the difficulty of comparing products like for like. There are now between 4,000 and 5,000 different mortgage deals available. Switching in the energy markets is increasing in the Gas and Electricity sectors. However, consumers find it difficult to compare the products available from different suppliers. Newer players are widely distrusted and awareness of alternative gas and electricity suppliers is very poor.