Research

Wednesday, August 4, 2010

DECISION ON PRICE RISES [read]

Wednesday, August 4, 2010

BW WELCOMES CONCLUSION OF PRICE-SETTING PROCESS [read]

Monday, July 12, 2010

LATEST DEVELOPMENTS [read]

Understanding customers’ views is critical in helping us develop our strategic plans and market research helps us collect this valuable information.  

In February/March 2009 we commissioned a large piece of market research to test customer support for our final proposals in the light of the anticipated overall bill increase and the deteriorating economic climate.  This covered a representative sample of 867 households and we asked customers what improvements they would not support having been given a fair estimate of the impact it would have on their bills.

Option

Option cost per month

Want to retain option

Strike out option

Would pay for more investment than in plan

Reduce leakage

9p

77%

10%

49%

More plant maintenance

11p

76%

12%

47%

Fewer interruptions

19p

72%

12%

44%

Meet demand growth

11p

70%

15%

50%

Increase network capacity

18p

69%

21%

43%

Fewer discolouration events

20p

64%

21%

43%

More resilience

35p

57%

22%

41%

Those sampled were also asked their preference between various levels of price increase and service and showed strong support for our proposals.

Option

% support

Bill increases of more than £4 per month and see wider improvements to service

14%

Bill increases of £4 per month and have service maintained and in some areas improved (as set out in our plan)

44%

Bill increases by the minimum of £2 per month but possibly see service deteriorate

18%

None of these – presumed as wanting less than £2 per month increase regardless of the impact on service

17%

Don’t know

6%

Overall, our research indicates 44% of customers were willing to pay an increase of a third in real terms for the improved service we were proposing.  A further 14% would pay more for even greater levels of investment and service improvement but we believe this would impact too heavily on those who preferred lower levels or no increase in their bills.

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In A Nutshell