Ungated Post | 26 Sep 2016
Consumer detriment: Counting the cost of consumer problems
Every year, millions of UK consumers suffer from some form of consumer detriment, be it a delayed delivery, substandard service or the purchase of a faulty item. Such experiences are a familiar feature of everyday lives, but quantifying the scale and impact of these experiences for UK consumers in a systematic way is a complex task.
This research project takes account of the monetary and time costs of consumer detriment, as well as compensation, to arrive at a considered estimate of total net cost for the UK population. This valuation incorporates three core elements. Firstly, it calculates the direct monetary costs borne by consumers who experience problems. These might be cash outlays caused by the problem itself (for example, when a broken toy is simply written off or when a poorly fitted boiler causes knock-on problems that have further costs) as well as any resulting loss of earnings. Secondly, it calculates the value of any leisure time given up by the consumer in experiencing or attempting to resolve the issue, so-called ‘time costs’, which might include things like time wasted on a delayed train, or time spent in a phone queue to get through to customer services. Thirdly, it calculates any compensation payments awarded in light of any claims made by the consumer, and subtracts these from the monetary and time costs described above. This approach seeks to present a comprehensive picture of UK consumer detriment, both larger and smaller problems.
Oxford Economics’ team is expert at applying advanced economic tools that provide valuable insights into today’s most pressing business, financial, and policy issues.
To find out more about our capabilities, contact:
Americas
Diantha Redd
+1 (646) 503 3052
Email
Asia Pacific
Peter Suomi
+65 6850 0110
Email
EMEA
Aoife Pearson
+44 (0)203 910 8054
Email
Related Services
Post
Experian / Oxford Economics Main Street Report
Experian/Oxford Economics’ Main Street Report brings deep insight into the overall financial well-being of the small-business landscape, as well as provides commentary on what specific trends mean for credit grantors and the small-business community.
Find Out More
Post
The Economics of Reduced-Risk Products: Global policy landscape and principles for policy treatment
In this study, Oxford Economics assesses the policy landscape for ‘Reduced-Risk Products’ in the tobacco market, and explores the potential health and economics consequences of taking a precautionary policy stance against them.
Find Out More
Post
The Economic Impact of China PNTR Repeal
This study provides rigorous analysis to inform policymakers on the potential impact of an escalation in US-China tariffs. We examine how removing China's Permanent Normalized Trade Relations (PNTR) status would affect the US economy, finding that tariffs would cause substantial output and job losses.
Find Out More