There
are an abundance of price comparison websites advertised on national television
these days. Most have spent fortunes on marketing gimmicks to make us remember
them, and then use them. From “catchy” theme tunes to the use of “cute”
animals. Price comparison is just something we can’t get away from, but what is
it, and how does it benefit you?
How do Price Comparison Sites Work?
The
vast majority of major financial institutions, from banks and building
societies to insurance companies and utility providers, have an advertising
budget. Some of this budget is set aside for online marketing, meaning that the
host website (in this case a price comparison site) receives a payment or
commission when you make a purchase through their links.
Whatever
product you are comparing, the price comparison site will present you with a
list of quotes based on the information you have provided. This can be arranged
in order of importance to you, which would normally be price. By clicking on
the quote you are interested in, you are setting tracking in motion that means
the company can pay the price comparison site if you complete a purchase.
Most of
the price comparison sites have hundreds of providers to draw on, and they have
a technical feed which gives them the quotes, often within seconds of you
submitting your details.
The
process, therefore, makes the price comparison site money, and saves you a lot
of time in ringing around different product providers.
