Question

Using comparison websites is a good way to obtain up-to-date information about financial products and services. Explain some of the limitations of these comparison systems. (Explain systems that can be accessed to obtain up-to-date information on products, services, and competition).

Answer 1

Limitation of using comparision websites

1) Charges of the comparision websites

Although there are few websites which provides data free of cost, however, only general information is provided at free of cost. If we need to collect the reliable information about these financial products, then generally those websites are preffered which has membership fees and other charges. Usually these chargs are very high and all of us cannot afford to pay it.

2) Selection of sampe size by comparision websites

These websites also provide us the information only about a sample of the population. Although they take due diligence while selection of sample, however it is possible that a very important element has been missed out from there sample, hence the results provided by them will not be accurate

3) Websites managed to promote few financial products

These websites are also funded by third parties. It is possible that those third parties like to promote few financial products above others, hence they will try to provide only pros of those financial products and will hide its cons.

4) These websites remove a sence of personal touch while obtaining information.

5) It is possible that infomation on one website is updates as on x date, and on another website is updated as on y date. Hence information from these two websites are not comparable, because of seprate timelines.