a study on consumer behaviour towards petroleum retail outlets in trichy city

Chapter-l INTRODUCTION

1.1 HISTORY

The origin of oil & gas industry in India can be traced back to 1867 when oil was struck at Makum near Margherita in Assam. At the time of Independence in 1947, the Oil & Gas industry was controlled by international companies. India's domestic oil production was just 250,000 tonnes per annum and the entire production was from one state - Assam.

The foundation of the Oil & Gas Industry in India was laid by the Industrial Policy Resolution, 1954, when the government announced that petroleum would be the core sector industry. In pursuance of the Industrial Policy Resolution, 1954, Government-owned National Oil Companies ONGC (Oil & Natural Gas Commission), IOC (Indian Oil Corporation), and OIL (Oil India Ltd.) were formed. ONGC was formed as a Directorate in 1955, and became a Commission in 1956. In 1958, Indian Refineries Ltd, a government company was set up. In 1959, for marketing of petroleum products, the government set up another company called Indian Refineries Ltd. In 1964, Indian Refineries Ltd was merged with Indian Oil Company Ltd. to form Indian Oil Corporation Ltd.

During 1960s, a number of oil and gas-bearing structures were discovered by ONGC in Gujarat and Assam. Discovery of oil in significant quantities in Bombay High in February, 1974 opened up new avenues of oil exploration in offshore areas. During 1970s and till mid 1980s exploratory efforts by ONGC and OIL India yielded discoveries of oil and gas in a number of structures in Bassein, Tapti, Krishna-Godavari-Cauvery basins, Cachar (Assam), Nagaland, and Tripura. In 1984-85, India achieved a self-sufficiency level of 70% in petroleum products.

In 1984, Gas Authority of India Ltd. (GAIL) was set up to look after transportation, processing and marketing of natural gas and natural gas liquids. GAIL has been instrumental in the laying of a 1700 km-long gas pipeline (HBJ pipeline) from Hazira in Gujarat to Jagdishpur in Uttar Pradesh, passing through Rajasthan and Madhya Pradesh.

After Independence, India also made significant additions to its refining capacity. In the first decade after independence, three coastal refineries were established by multinational oil companies operating in India at that time. These included refineries by Burma Shell, and Esso Stanvac at Mumbai, and by Caltex at Visakhapatnam. Today, there are a total of 18 refineries in the country comprising 17 in the Public Sector, one in the private sector. The 17 Public sector refineries are located at Guwahati, Barauni, Koyali, Haldia, Mathura, Digboi, Panipat, Vishakapatnam, Chennai, Nagapatinam, Kochi, Bongaigaon, Numaligarh, Mangalore, Tatipaka, and two refineries in Mumbai. The private sector refinery built by Reliance Petroleum Ltd is in Jamnagar. It is the biggest oil refinery in Asia.

By the end of 1980s, the petroleum sector was in the doldrums. Oil production had begun to decline whereas there was a steady increase in consumption and domestic oil production was able to meet only about 35% of the domestic requirement. The situation was further compounded by the resource crunch in early 1990s. The Government had no money for the

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development of some of the then newly discovered fields (Gandhar, Heera Phase-II and III, Neelam, Ravva, Panna, Mukta, Tapti, Lakwa Phase-II, Geleki, Bombay High Final Development schemes etc. This forced the Government to go for the petroleum sector reforms which had become inevitable if India had to attract funds and technology from abroad into the petroleum sector.

1.2 MAJOR PLAYERS IN THE INDUSTRYIndian Oil Corporation limited:India’s flagship national oil company and downstream petroleum major, Indian Oil Corporation Ltd.. It is India's largest commercial enterprise, with a sales turnover of Rs. 2, 85,337 crore, the highest-ever for an Indian company, and a net profit of Rs. 2, 950 crore for the year 2008-09. IndianOil is also the highest ranked Indian company in the prestigious Fortune 'Global 500' listing, having moved up 19 places to the 116th position in 2008. It is also the 18th largest petroleum company in the world. The Corporation is celebrating the year 2009 as its golden jubilee year.

As the flagship national oil company in the downstream sector, IndianOil reaches precious petroleum products to millions of people every day through a countrywide network of about 35,000 sales points. They are backed for supplies by 167 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane(LPGas) bottling plants. About 7,335 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep.

IndianOil operates the largest and the widest network of petrol & diesel stations in the country, numbering over 18,278. It reaches Indane cooking gas to the doorsteps of over 53 million households in nearly 2,700 markets through a network of about 5,000Indane distributors.

IndianOil's ISO-9002 certified Aviation Service commands over 63% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defence Services. The Corporation also enjoys a dominant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors.

Bharat Petroleum Corporation Limited:Bharat Petroleum Corporation (BPCL) traces its history to 1928 when the Burmah Shell OilStorage & Distribution Company of India was incorporated in England to enter the petroleumproducts business in India. The business of the Company grew substantially given theinternational backing of Shell and it achieved the leadership position in India. In 1952, Shelland Burmah Oil Company set up Burmah Shell Refineries to set up a refinery in Mumbai. The entire operations of Burmah Shell in India were nationalised in 1976 and the Refinery and Marketing Companies were merged to form BPCL.BPCL is India's second largest oil company in terms of market share and processes about 9million metric tons of crude per year. Today the company produces a diverse range of products, from Petrochemicals and Solvents to aircraft fuel and speciality lubricants. It manufactures petroleum and petroleum products, asphalt, bituminous substances, carbon, carbon black,hydrocarbons, mineral substances and the products/by-products derived there . There are four major refineries situated at Mumbai, Kochi, Bina and Numaligarh .The

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Company mainly imports from the middle east, with indigenous production in small quantities.

The Company has setup jointventures with several entities.Some of them are petronet LNGlimited, Indraprastha Gas Limited,Central UP gas limited etc.The Company has one of the largest marketing network in the country.It boasts of 12 installations,126 depots,22 Aviation service Stations,8251 Retail outlets and tankage capacity of 3.37 million kilolitres.

Apart from the most common used fuels like petrol and diesel, BPCL sells LPG under the name Bharatgas to 25 million subscribers. The industries buy LSHS, Naptha, Furnace Oil, solvents ( MTO, SBP, Hexane) speciality products such as Benzene, Toluene,CRMB ( Crumb Rubber Modified Bitumen) , PMB (Polymer Modified Bitumen) etc. from the company which also sells lubricants to auto and industry segments under the umbrella brand MAK.

Hindustan Petroleum Corporation Limited:

HPCL is a Fortune 500 company, with an annual turnover of over Rs 1,31,802 Crores (US$ 25,618 Millions) during FY 2008-09, having about 20% Marketing share in India and a strong market infrastructure. Corresponding figures for FY 2007-08 are: Rs 1,03,837 Crores (US$25,142 Million).

Consistent excellent performance has been made possible by highly motivated workforce of over10,800 employees working all over India at its various refining and marketing locations.HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards, with a capacity of 335 TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. HPCL's vast marketing network consists of 13 Zonal offices in major cities and 90 Regional Offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation Service Stations, LPG Bottling Plants, and Inland Relay Depots & Retail Outlets, Lube and LPG Distributorships. HPCL, over the years, has moved from strength to strength on all fronts. The refining capacity steadily increased from 5.5 MMTPA in 1984/85 to 13 MMTPA presently. On the financial front, the turnover grew from Rs. 2687 Crores in 1984-85 to an impressive Rs 1,31,802 Crores in FY 2008-09.

The company’s marketing network boasts of about 8591 retail outlets, 42 terminals and 100 depots.

Reliance Industries Limited:

Reliance Petroleum was incorporated in 1991as Reliance Refineries, but changed its name to the former in 1993, and has since merged with its parent company RIL. Its refinery is a standalone, and is at Jamnagar, on the country’s western coast. The refinery was commissioned in July 1999, and it commenced its operations in 2000-01. It is India’s largest standalone refinery, and constitutes 24% of the country’s refining capacity. Additionally, the jamnagar refinery is also the world’s fifth largest refinery at a single place. RIL also owns23% of the product pipelines in the country.

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RIL is a private integrated player in India, and has established a retail network of more than1300 units. Earlier, RIL had marketing agreements with the oil PSUs till March 2004 tomarket about 14 million tonnes of its petroleum products. Now RIL has plans to set up about 4300 more outlets throughout the country subsequently. Its foray into marketing is expected to improve its marketing margins, and complete its attempt at downstream integration.

Shell Corporation:

Royal Dutch Shell is the largest and most diversified international investor in India's energy sector among all global integrated oil companies with nearly US$1 billion invested already. It is the only global major to have a fuel retail license in India. Besides being a major private sector supplier of crude, products, chemicals and technology to public/private sector oil companies, Shell also has key interests in lubricants, bitumen and LPG while operating an LNG receiving and re-gasification terminal, as well as a significant Technology center and now a financial shared services center. India has been a focus country for investments from the global Shell Foundation, which has committed resources across seven programs and has already spent over USD5.5 million to date impacting more than 1,19,000 households and 195 entrepreneurs.

1.3 Challenges ahead for Indian petro-retail sector:

a)No real Market Determined Pricing Three years passed since APM was dismantled but still the promise of Government of india to establish a regulatory board has not bore fruit and it seems that the government has made an “April Fool”* of all of us. Now its implication is that although APM is not in use intheory, but in practical the petro-products price is still determined by the government. Consultation with the oil companies and the price competition has not happened yet. A serious battle revolving around the pricing and related competition would potentially come into play only with the active involvement of the private sector in the marketing segment.

b) Cut-throat Competitive environment With the coming of the private players in the petro-retailing, the sector is destined to witness immense competition in the future. In the changed scenario, whosoever would be in thepossession of adequate infrastructure for transportation, storage and distribution will emerge as winner in due course of time. With this game plan in mind, the existing as well as private oil companies are trying to strengthen their retail network continuously. However, the government has taken enough steps to ensure that the new entrants could not have an easy route to build a retail network. The government had specified that private companies could not poach on the outlets of state-owned oil companies for a period of five years starting 1 April 2002.

c)Consumer’s increasing expectations With growing competition in the petro-retailing sector, today’s consumer is becoming more and more demanding. The emergence of new psychographic segments in petro-retail market bears the testimony to this fact. A closer look at these segments tells us what exactly aConsumer is looking for whenever he goes to a fuel station to purchase fuel. He looks for-

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Quality & Quantity assurance Quick filling and efficient forecourt service Rewarding loyalty Premium fuels Cashless transactions Non-fuel services

d) Need to provide alternate sources for revenue One major challenge that the oil marketing companies are facing today is the need to provide the alternate sources for revenue. Many factors have triggered this new event in today’s petro-retailing environment. These factors are-

Increased pressures on margins Desire to leverage real estate and increase revenues Evolving customer segments like “Value time saving propositions, Quality and Environment consciousness, Prestige seeker etc.” Need to differentiate offerings

1.4 Future vision of petroleum industry:

a) Shift from retail outlet branding to corporate branding :Ever since the market was deregulated, the oil companies are busy in bringing the branding concept in petro-retailing which was a commodity market for years with no differentiation.However, consistent efforts make them taste success with the advent of branded fuels such as Speed, Xtrapremium etc. Also, at the same time RO branding was initiated and PFS (Pure For Sure), Club HP and Q&Q outlets came into existence. But still the oil companies have not found the way how to make a customer say pointing towards a RO that as this outlet belongs to a particular company, it will be the best in Q&Q and others concerns. In other words, corporate branding is what on the cards in the future of petro-retailing.

b)Offer of range of premium branded fuels :Today, there are so many branded fuels of different oil companies in the market like Speed (BPCL), Turbojet (HPCL) and Xtrapremium (IOCL) etc. But these fuels are more or less same with slight variations in the chemistry. Also, there is a lack of product assortment in this business of branded fuels. There is not much options to choose among. However, with high investment in R&D, things are not going to remain same and very soon we will see a full range of premium branded fuels like 93-octane petrol, 97-octane petrol, 125-octane petrol etc.

c) Emergence of non-fuel services as a major activity at retail outlets :The dismantling of APM has removed the privilege of assured returns from the PSUs andthus, it has increased pressure on their margins, as to compete with the private players, who are with deep pockets, it is imperative to make huge investment in the services being offeredat the ROs. Since the base product is same, the differentiating factor would be the non-fuel services. Also, the changing face of the Indian consumer is one of the main reasons behind the non-fuel services in petro-retailing. Today, he is looking at a one stop solution

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to all his needs – buying groceries, withdrawing cash from his bank, making utility payments,renewing his insurance cover, grabbing a quick bite, obtaining Pollution Under Control Certification and of course filling fuel in his car. On the other hand the driver on the highways is seeking a clean and hygienic place to relax and freshen-up, service his vehicle and have a good meal at the restaurant in the pump.

d)Loyalty programs an integral part:The immense competition will make loyalty programs an integral program of the day-to-day functioning of petro-retailing. Of course, right now many such loyalty programs are being run by the petro-retailers like Smart Fleet (BPCL), Xtrapower(IOCL), Drivetrack (HPCL), Transconnect (Reliance), Petrocard (BPCL) and others. However, these programs are mainly focussed at the bulk consumers and the small consumers are left unnoticed more or less. But in future, there won’t be such differentiation and loyalty programs will be there for every segment of consumers.

e) Attempt by all players to drive volumes to retail sites In order to saturate the market before the private players can consolidate network, the PSUs are vigorously setting up new outlets. In the last three years, the PSUs have added more than 3000 outlets to their network. However, it will reduce the throughput per RO in long run. Hence in order to maintain the throughput, all players will strive to drive volumes to their retail sites.

f) Leveraging automation and communication for enhanced offerings In the wake of the increased customer’s expectation, in future, retailing of petroleum products is going to be very sophisticated and highly modernized. In the pipeline, there is a slew of automation infrastructure solutions ranging from integrated point of sale terminals, aggregated data management system, fuel delivery management and fleet managementsystems that help customer self-service, dynamic pricing, network planning, demand forecasting

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1.5 Market Share Profile:

The public sector companies enjoy a huge share in the petroleum industry amounting nearly to 90%.The market leader in the country is the IOCL with about 49% of the total market followed by BPCL with 21% and HPCL with 18%.Hpcl enjoys a market share of 25.55% with respect to motorspirit and 23.30% with respect to diesel. Bpcl holds the second position in HSD segment with 23% and 30% in MS segment. IOCL is the leader with 46% share in diesel and 35% MS. In the area of refining, Indian oil holds a mammoth share of 40.43%, followed by bharat petroleum with 15.11% and HP with 8.73%.Pipelines form a critical part in distribution, out of all the petroleum pipelines IOC has 50%,BP with 18% and HP with 22%.

Fig1 Market share profile of Oil Marketing Companies in India

Company name March-2007 December-2007 March-2009PSU’sIOC 16,540 16,540 18,278BPCL 7,609 8,089 8,251HPCL 7,909 8,060 8,591Total 32,058 32,689 35,120Private PlayerRIL 898 1800 1,800Essar 1,149 1,250 1,250Shell 32 35 37Others 2,079 3,035 3,042Total 34,137 35,724 36682

Fig2 Statistics of Total no. of Petroleum retail outlets for different OMC’s in IndiaSources: Indian Oil and Gas and CRISIL Research

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It is clear from the data that IOC is the biggest player with 18,278 retail outlets followed by BPCL with 8251HPCL with 8,591 and rest followed by private players. It is clear that majority of retail outlets are being operated by PSU’S while private players are operating very few. This is because of the fact that prior to 2002 it was only public sector OMC’s which were allowed to sell fuel in the market.

But in 2002, government also allowed private players to set up their own retail outlets. After this decision the private player started operating their retail outlets. But in all of these private player Reliance was the only one which acquired the market share of 14.45% during its first fiscal. It was because of tie of petroleum fueling with organized retail activities. The market share of public sector companies continued to decline from 15.2%-19% during 2006-07. In the fiscal 2007-08 IOC has lost its market share from 49%-40.36%. While BPCL has increased its market share from 21%-24.56%. While other gainers are Essar and Shell. It is clear that IOC is still the biggest player in the market. It is trying hard to regain its lost share.

%tage share of companies

MS HSD Total

April-Oct 2006

April-Oct2007

April-Oct 2006

April-Oct2007

April-Oct 2006

April-Oct2007

IOC 42.70 42.55 52.88 52.69 47.79 47.62BPCL 28.74 30.00 23.00 23.93 26.13 26.07HPCL 23/69 25.50 18.36 23.30 21.03 21.41RIL 4.31 3.75 4.47 3.27 4.39 3.51ONGC 0 0 0.56 0.54 4.39 0.27ESSAR 0.13 0.85 0.06 0.35 0.10 0.60SHELL 0.41 0.78 0.14 0.26 0.28 0.50

100 100 100 100 100 100

Fig3:Market share of Petroleum Company in auto fuel sectorSources: Indian Oil and Gas and CRISIL Research

These are the figures for sales of HSD and MS for different oil companies in Indian market. These are upto October 2007 indiacating that the share of private player has improved by a small margin. Share of IOC has gone down, while HPCL has gained significant share of BPCL and IOC. The entry of new private player in the petroleum industry has resulted in the loss of market share of public companies in the market. This is as shown

It is clear from the figure that IOC, BPCLand RIL were the major companies which lost considerable market share in auto fuel sector. This was all because of rising oil prices. The prices are also being determined on the basis of demand and supply.

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Chapter-ll

RESEARCH AND DESIGN METHODOLOGY

This chapter describes the methodology of the study. This project is based on information collected from primary sources. After the detailed study, an attempt has been made to presentcomprehensive analysis of consumption of Petroleum Bunks consumed by the people. The data had been used to cover various aspects like consumption, consumer’s preference andcustomer’s satisfaction regarding Petroleum Bunks.

2.1Objectives of the Study:

To study the Consumption pattern of motorists in trichy city To study the factors playing major rule in the fuel Consumption To study the Various expectations and perceptions of the consumers with respect to

fuel stations To study the major hitch backs faced by the fuel consumers of trichy city

2.2 Significance of the study:

The research carried out is based on the concept of consumer behavior. It is valuable to a marketer in retaining the market and increasing the market share. Petroleum marketing in India is characterized by severe competition. In such a case, it is important to look beyond the Regular product quality and Quantity. The oil marketing companies are in to focusing of non fuel services to withstand the competition. It is very important to know about the perception of such ventures by the average consumers. In other words, this study tries to strike a balance between the perception of consumers and the companies.

2.3 Scope of the study:

The study can be used by the marketers of the OMC to focus on the most valued factor of the consumer. OMC can differentiate the necessities the luxuries in a petrol bunk i.e the degree of importance to be accorded to attributes of a fuel station-thereby ensuring proper allocation of funds. The companies can improvise on the data and increase market share.

2.4 Research design:

The study’s objective is to describe the retail fuel market in trichy city. A research which describes the characteristics of a particular individual, or of a group is called as descriptive study. Hence, descriptive study is adopted

2.5 Universe of the study

The universe of the study is about 3lakh motorists in trichy city

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2.6 Survey design:The study is a cross sectional study because the data were collected at a single point of time.For the purpose of present study a related sample of population was selected on the basis ofconvenience.

2.7 Sample Size and Design:A sample of 200 people was taken on the basis of convenience. The actual consumers werecontacted on the basis of random sampling.

2.8 Research Period:Research work is only carried for 5 or 6 weeks.

2.9 Research Instrument:This work is carried out through administered , semi structured questionnaires. The questions included were open ended and offered multiple choices.

2.10 Data Collection:

The researcher interviewed the persons driving a motor vehicle in trichy city and filled the questionnaires personally to elicit true responses.

2.11 Statisical tools used:

Statistical package for social sciences(SPSS v17.0) Microsoft excel 2003

The statistical tools used were Percentage Weighted average mean Chi squared test for independence Mann whitney U test Friedmann kendall test Anova Kruskall Wallis H test

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Chapter-lll

DATA ANALYSIS AND INTEPRETATION

Table-1

AGE OF THE RESPONDENTS

Age Frequency Percent Valid Percent Cumulative Percent

15-20 3 1.5 1.5 1.5

20-30 25 12.5 12.5 14.0

30-40 50 25.0 25.0 39.0

Above 40 122 61.0 61.0 100.0

Total 200 100.0 100.0

INTERPRETATION:

The majority of the respondents belonged to the age group of 40 and above. A very few of the people belonged to the age group of 15-20.Middle aged persons had the lion share in the response.

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Figure 4:

LITERACY PROFILE OF THE RESPONDENTS

INTERPRETATION:

Majority of the respondents have atmost studied higher secondary education.Undergraduates were also prominent in the respondents.Postgraduates were found in meagre numbers.

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Table-2

VEHICLE PROFILE OF THE RESPONDENTS

VEHICLE

Frequency Percent

Valid

Percent Cumulative Percent

. .

Two Wheeler 148 74.0 74.0 74.5

Auto Rickshaws 19 9.5 9.5 84.0

Four Wheeler 32 16.0 16.0 100.0

Total 200 100.0 100.0

INTERPRETATION:

The survey was mostly among the two wheeler riders in the city.Auto rickshaws were given considerable importance in the survey.Four wheeler riders were involved in the survey in considerableQuantities.

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Figure 5:

FUEL CHOICE OF THE RESPONDENTS

INTERPRETATION:

The majority of the consumers leaned towards the traditional ordinary fuel, while few of the consumers have started to use the branded fuels.

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Table-3

PROFILE OF AVERAGE REFUELLING AMONG THE MOTORISTS

VEHICLEAverage Fill

Total<1 1-2 2-3 3-4 >5

Two Wheeler Count 6 92 22 14 15 149

% within

VEHICLE

4.0% 61.7% 14.8% 9.4% 10.1% 100.0%

Auto rickshaws Count 0 12 7 0 0 19

% within

VEHICLE

.0% 63.2% 36.8% .0% .0% 100.0%

FourWheeler Count 0 0 1 7 24 32

% within

VEHICLE

.0% .0% 3.1% 21.9% 75.0% 100.0%

Total Count 6 104 30 21 39 200

% within

VEHICLE

3.0% 52.0% 15.0% 10.5% 19.5% 100.0%

INTERPRETATION:

Most of the two wheelers are refueled at an average volume of 1-2 litres per visit.Auto rickshaws drivers mostly filled their vehicles at an average volume of 1-2 litres per visit.

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Table-4

FREQUENCY PROFILE OF THE VISIT TO PETROL BUNKS

VEHICLEFrequency of Visit

Total1 1-2 2-3 >3

Two Wheeler Count 42 55 28 24 149

% within

VEHICLE

28.2% 36.9% 18.8% 16.1% 100.0%

Auto rickshaws Count 1 2 0 16 19

% within

VEHICLE

5.3% 10.5% .0% 84.2% 100.0%

Four Wheeler Count 15 2 9 6 32

% within

VEHICLE

46.9% 6.3% 28.1% 18.8% 100.0%

Total Count 58 59 37 46 200

% within

VEHICLE

29.0% 29.5% 18.5% 23.0% 100.0%

INTERPRETATION:

Majority of the two wheeler riders visit the petrol bunks at an average of 1-2 times per week. Most of the four wheelers visit the petrol bunks once in a week on an average.

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Table-5

SELECTIVITY OF FUELSTATIONS AMONG THE RESPONDENTS

Frequency Percent Valid Percent Cumulative Percent

Yes 141 70.5 70.5 70.5

No 59 29.5 29.5 100.0

Total 200 100.0 100.0

Figure 6:

INTERPRETATION:

Majority of the fuel consumers prefer to refuel their vehicles in selected petrol bunks only.

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Table-6

PROFILE OF SELECTIVITY AMONG THE VARIOUS VEHICLES

VEHICLESELECTIVE

TotalYES NO

Two Wheeler Count 104 45 149

% within

VEHICLE

69.8% 30.2% 100.0%

Auto Rickshaw Count 17 2 19

% within

VEHICLE

89.5% 10.5% 100.0%

Four Wheeler Count 20 12 32

% within

VEHICLE

62.5% 37.5% 100.0%

Total Count 141 59 200

% within

VEHICLE

70.5% 29.5% 100.0%

INTERPRETATION:

Auto drivers are highly selective with 89.5% . Two wheeler riders are comparatively more selective than four wheelers with 69.8%.62.5% of the four wheeler riders are selective

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Table-7

PROFILE OF SELECTED NUMBER OF PETROL BUNKS

Number of selected petrol bunks

Frequency Percentage

1 37 26%

2 85 60%

3 18 13%

>3 1 1%

Total 141 100%

Figure-7:

INTERPRETATION:

Majority of the motorists refuel their vehicle at two petrol bunks.About 26% refuel at only one petrol bunk.Very low number of people refuel selectively at three petrol bunks.

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Figure 8:

PREFERENCE OF OIL MARKETING COMPANIES AMONG RESPONDENTS

Table-4

Company Frequency Percent Valid Percent Cumulative Percent

HPCL 49 24.5 24.5 24.5

BPCL 87 43.5 43.5 68.0

IOCL 64 32.0 32.0 100.0

Total 200 100.0 100.0

INTERPRETATION:

Bharat petroleum is the most preferred oil marketing company among the respondents with 43.5%. IOCL occupied the second spot with 32%.HPCL occupies the third place with 24.5%.

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Table-8

OPINION ON HOMOGENEITY OF QUALITY AND QUANTITY OF FUEL


Yes 21 10.5 10.5 10.5

No 130 65.0 65.0 75.5

Can’t say 49 24.5 24.5 100.0

Total 200 100.0 100.0

Figure 9:

Y-Q&Q is the same all over the city

N-Q&Q is not the same over the city

C-can’t say

INTERPRETATION:

The majority of the respondents feel that the quantity and quality of the fuel is not the same at all fuel

Stations in the city.Only ten percent believed in homogeneity of quantity and quality.

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Figure 10:

TRUST ON QUALITY AND QUANTITY OF FUEL AT THE SELECTED

FUEL STATIONS

INTERPRETATION:

Nearly three fourth of the consumers firmly believe on the quality and quantity of the fuel bought by them at selected petrol bunks.Insignificant number of people don’t believe in the Q&Q at their frequented places.

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Table-9

FACTOR INFLUENCING FUEL STATION SELECTION

(Weighted Average mean)

FACTOR 1 2 3 4 5 6 7 Total F-rate

Close to Visited Places

55 32 14 3 1 1 1 667 6.67

Loyalty Programmes 5 7 4 6 4 2 5 142 1.42

Quality and Quantity 102 31 5 3 1 2 1 950 9.50

Driveway Service 21 50 6 3 4 2 1 506 5.06

Non fuel Outlets 1 2 5 1 3 2 1 75 0.75

Brand image 7 5 8 13 3 2 1 184 1.84

Non fuel Outlets 7 5 11 3 1 2 1 135 1.35

Close to Visited places=(55x7)+(32x6)+(14x5)+(3x4)+(1x3)+(1x2)+(1x1)=667

=667/100=6.67

INTERPRETATION:

The f-rate value from the above table shows that the most important factor is quality and quantity of the fuel .The second most important factor considered by the customer is the proximity of the petrol bunks to his frequented places. Quality of the service occupies the third rank .New concepts like Non fuel outlets and Loyalty programmes are considered at the last.

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Table-10

FACTORS FOR CHOOSING A PETROL BUNK AMONG TWO WHEELERS

(Friedmann Kendal test)

Vehicle Mean Rank

Two wheeler Close to visited places 1.93

Because of loyalty card 5.07

Quality and Quantity 2.20

Service Quality 4.13

Non fuel outlets 5.23

Brand Image 4.90

Advice of friends 4.53

Four Wheeler Close to visited places 4.00

Because of Loyalty card 5.00

Quality and Quantity 6.00

Service Quality 1.00

Non fuel outlets 7.00

Brand Image 2.00

Advice of friends 3.00

INTERPRETATION:

In the case of two wheelers, the proximity of the fuel stations to the visited places is the most preferred reason,Quantity & Quality and service quality occupy the next places respectively

In the case of four wheelers, Service quality is the most critical reason.Brand image and advice of friends occu[y the second and third places respectively.

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Table-11

FACTORS CONSIDERED DURING PURCHASE OF FUEL

(Friedman Kendall Test)

Null hypothesis(Ho):Null hypothesis(Ho): There is no significant difference in the preference given for the different There is no significant difference in the preference given for the different product related attributes influencing purchase preference of Bar Chocolate by the respondents. product related attributes influencing purchase preference of Bar Chocolate by the respondents.

INTERPRETATION:

Table 11(A) shows that the most important attribute considered from the fuel is smooth running of the vehicle. The next most important factor is the mileage.Easy starting ,maintenance and pick up follow next respectively. The Asymptotic value of .014 (<0.05) shows that there is significant difference in the importance given to attributes.

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Table-11(A)

FactorsMean Rank

Smooth Running 2.43

Easy starting 3.05

Maintenance 3.21

Pick up 3.71

Mileage 2.60

Table-11(B)

N 29

Chi-Square 12.462

df 4

Asymp. Sig. .014

Table-12

PROFILE OF IMPORTANCE OF THE ATTRIBUTES OF INFRASTRUCTURE

(Weighted Average mean)

ATTRIBUTES VERYHIGH HIGH AVERAGE LOW VERY LOW

TOTAL F-RATE

Paved Driveway

92 61 36 11 0 845 8.45

Illumination 79 70 40 11 0 817 8.17

Space 75 81 34 9 1 820 8.20

Canopy 87 58 39 16 0 816 8.16

Multiproduct Dispenser

68 61 50 16 5 771 7.71

Paved driveway=(92x5)+(61x4)+(36x3)+(11x2)=845/100=8.45

Figure 11:

INTERPRETATION:

Table (VIII) shows that the paved driveway is considered as the most important attribute of infrastructure in a petrol bunk. The second place is occupied by size/area of the petrol bunk. Illumination and canopy are given equal importance. Multiproduct dispenser is comparablyConsidered less important\

26

Table-13

PROFILE OF IMPORTANCE OF THE ASPECTS OF SERVICE

ASPECTS VERY HIGH

HIGH AVERAGE LOW VERY LOW

TOTAL F-RATE

Courteous behaviour

122 48 27 3 0 889 8.89

Uniform for attendants

72 65 40 22 1 785 7.85

Presence of Forecourt

Supervisors

71 60 44 17 8 769 7.69

Presence of Dealers

53 50 34 17 16 617 6.17

Courteous behavior=(122x5)+(48x4)+(27x3)+(3x2)=889/100=8.89

Figure 12:

INTERPRETATION:

Among the various employee related aspects of service ,courteous behaviour is the most popular attribute .Uniform for employees,presence of forecourt superisors and presence of dealers follow respectively.

27

Table-14

PROFILE OF IMPORTANCE OF ADDITIONAL SERVICES

SERVICE VERYHIGH HIGH AVERAGE LOW VERY LOW

TOTAL F-RATE

Air Pressure

check

160 25 15 0 0 945 9.45

Wind Shield

Cleaning

74 78 28 15 5 801 8.01

INTERPRETATION:

Nearly 100% of the respondents felt that air pressure check is an absolute necessity in petrol bunks.Large number of people indicated the importance of windshield cleaning

Table-15

PROFILE OF IMPORTANCE OF ADDITIONAL FACILITIES

FACILITIES VERYHIGH HIGH AVERAGE LOW VERYLOW TOTAL F-RATE

Drinking water

116 45 17 16 6 849 8.49

Toilet 115 45 23 13 4 854 8.54

Telephone Facilities

89 50 31 23 7 791 7.91

INTERPRETATION:

The respondents felt that the toilet is the most preferred facility at petrol bunks with 8.54.Provision of drinking water is more or less equally important.Telephone facilities is comparitively less preferred.

28

Table-16

PROFILE OF NECESSITY OF THE NON FUEL OUTLETS

NON FUEL OUTLETS

VERY HIGH

HIGH AVERAGE LOW VERY LOW

TOTAL F-RATE

ATM 109 32 29 28 2 818 8.18

ConvenienceStores 31 32 42 74 21 578 5.78

Eateries 30 33 29 74 34 551 5.51

Book stalls 26 42 28 66 38 552 5.52

ATM=(109x5)+(32x4)+(29x3)+(28x4)+(2x1)=818/100=8.18

FIGURE 13:

INTERPRETATION:

ATM is the most preferred non fuel outlet at petrol bunks. Convenience stores are the comparatively preferred more than eateries and bookstalls.

29

Figure 14:

OVERALL IMPORTANCE PROFILE OF THE ATTRIBUTES OF PETROL BUNKS

INTERPRETATION:

The most important of the attributes is the air pressure check with a rating of 9.45 on a scale of 10.Courteous behaviour of the attendants is the second important attribute with a score of 8.89.paved driveway ,toilet,drinking water occupy the next places respectively. Eateries and bookshops occupy the ultimate position with meager scores below 6.

30

Table-17

NECESSITY OF SELF SERVICE IN PETROL BUNKS


Yes 111 55.5 55.5 55.5

No 81 40.5 40.5 96.0

Cant Say 8 4.0 4.0 100.0

Total 200 100.0 100.0

Figure 15:

INTERPRETATION:

Majority of the respondents (55%) felt that self service petrol bunks was necessary in the city. Less number of people felt that the self service was unnecessary comparatively

31

Table-18

OPINION ON RELATIONSHIP BETWEEN APPEARANCE OF THE PETROL BUNK AND THE QUANTITY AND QUALITY OF THE FUEL

Frequency Percent

Yes 113 56.5

No 81 40.5

Cant say 6 3.0

Total 200 100

Figure 16 :

INTERPRETATION:

Majority of the respondents felt that there is relationship between the appearance/maintenance and the Quality &Quantity of the fuel. In comparison, with the positive responses negative responses were less in number.

32

Table-19

INFLUENCE OF AGE ON PREFERENCE OF COMPANY

(chi squared test)

AGECOMPANY

TotalHPCL BPCL IOCL

15-20 2 2 0 4

20-30 6 13 6 25

30-40 20 18 12 50

Above 40 21 54 46 121

Total 49 87 64 200

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 13.773a 6 .032

Likelihood Ratio 14.378 6 .026

N of Valid Cases 200

H0:There is no influence of age on the preference of company

INTERPRETATION:

The pearson chi square significance is 0.032(<0.05) .Hence,the null hypothesis is rejected .It can be inferred that the age has influence on the preference of companies.

33

Table-20

INFLUENCE OF AGE ON CHOICE OF FUEL

(chi squared test)

H0:There is no influence of age on the preference of fuel

INTERPRETATION:

The significance value is 0.874(>0.05) .Hence, the null hypothesis is accepted .There is no influence of age on the preference of fuel.

34

Fuel Choice

TotalPremium Ordinary

AGE 15-20 1 3 4

20-30 9 16 25

30-40 14 36 50

Above 40 34 87 121

Total 58 142 200

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square .698a 3 .874

Likelihood Ratio .675 3 .879


Table-21

INFLUENCE OF AGE ON SELECTIVITY AMONG PETROL BUNKS

(Cross tabulation and Chi squared test)

H0:There is no influence of age on selectivity among the fuel stations

INTERPRETATION:

The pearson chi square coefficient value is 0.184(>0.05).Hence the null hypothesis is accepted. There is no influence of age on selectivity among petrol bunks.The selectivity increases along with the age except a slight decrease in the case of 30-40 age group.

35

Selective

TotalYes No

AGE 15-20 Count 2 2 4

% within AGE 50.0% 50.0% 100.0%

20-30 Count 16 9 25

% within AGE 64.0% 36.0% 100.0%

30-40 Count 31 19 50

% within AGE 62.0% 38.0% 100.0%

Above 40 Count 92 29 121

% within AGE 76.0% 24.0% 100.0%


% within AGE 70.5% 29.5% 100.0%

Value df

Asymp. Sig. (2-

sided)




Table-22

INFLUENCE OF AGE ON AVERAGE FILL PER VISIT

(Cross tabulation and Chi squared test)

Average Fill

Total<1 1-2 2-3 3-4 >5

AGE 15-20 Count 0 4 0 0 0 4

% within AGE .0% 100.0% .0% .0% .0% 100.0%

20-30 Count 0 15 1 1 8 25

% within AGE .0% 60.0% 4.0% 4.0% 32.0% 100.0%

30-40 Count 2 28 8 8 4 50

% within AGE 4.0% 56.0% 16.0% 16.0% 8.0% 100.0%

Above 40 Count 4 57 21 12 27 121

% within AGE 3.3% 47.1% 17.4% 9.9% 22.3% 100.0%

Total Count 6 104 30 21 39 200

% within AGE 3.0% 52.0% 15.0% 10.5% 19.5% 100.0%

Value df

Asymp. Sig. (2-

sided)




H0:there is no influence of age on the average refuel

INTERPRETATION:

The pearson coefficient is 0.168(>0.05).Hence null hypothesis is accepted. There is no influence of age on average refuel

36

Table-23

INFLUENCE OF AGE ON FREQUENCY OF VISIT

.

H0:There is no influence of age on the average frequency of visit to the petrol bunks

INTERPRETATION:

The pearson coefficient is 0.212 (>0.05).Null hypothesis is accepted.Hence the age does not influence the average frequency of visit.

37

AGEFrequency of Visit

Total1 1-2 2-3 >3

15-20 1 0 1 2 4

20-30 11 5 3 6 25

30-40 11 15 15 9 50

Above 40 35 39 18 29 121

Total 58 59 37 46 200

Value df

Asymp. Sig. (2-

sided)




Table-24

INFLUENCE OF AGE ON PREFERENCE OF FACTORS FOR CHOOSING A FUEL STATION

(Kruskall Wallis Test)

Close to visited

places

Because of

Loyalty card

Quantity and

Quality Service Quality

Non fuel

outlets Brand image

Advice of

fiends

Chi-Square 3.654 4.328 8.492 3.122 4.448 7.152 1.059

Df 3 3 3 3 3 3 2

Asymp. Sig. .301 .228 .037 .373 .217 .067 .589

H0:There is no significant difference in ranking of factors of choice of fuel station between the age groups

INTERPRETATION:

The Ranking of Quality & Quantity of the fuel is preferred differently among the different age groups(p=0.037). In other words Age influenced how the respondents ranked Q&Q. The ranking of rest of the factors were not influenced by age

38

Table-25

INFLUENCE OF AGE ON PREFERRED ATTRIBUTES OF FUEL


Smooth Running Easystarting Maintenance Pickup Mileage

Chi-Square 8.149 1.085 6.915 7.678 2.494

df 3 2 2 3 3

Asymp. Sig. .043 .581 .032 .053 .476

H0:The preference given to all the attributes of the fuel is the same across all the age groups.

INTERPRETATION:

Pvalue for smooth running and maintenance are less than 0.05(p=0.043 &p=0032).So Age does influence the ranking of the two attributes. The rest of the factors are not influenced by age groups.

39

Table-26

INFLUENCE OF AGE GROUPS ON THE PERCEIVED IMPORTANCE OF THE ATTRIBUTES OF INFRASTRUCTURE

(ANOVA)

Sum of Squares df Mean Square F Sig.

Paved driveway Between Groups 4.166 3 1.389 1.679 .173

Within Groups 162.054 196 .827

Total 166.220 199

Illumination Between Groups 6.918 3 2.306 2.923 .035


Total 161.555 199

Space Between Groups 4.944 3 1.648 2.197 .090


Total 152.000 199

Canopy Between Groups 6.339 3 2.113 2.269 .082


Total 187.010 197

Multiproduct

dispenser

Between Groups .510 3 .170 .150 .930

Within Groups 222.285 196 1.134

Total 222.795 199

H0:There is no significant difference of the perceived importance among the age groups

INTERPRETATION:

The analysis of variance table shows that the perceived importance of illumination varies among different age groups. The perceived importance of rest of the attributes does not vary significantly among groups.

40

Table-27

INFLUENCE OF EDUCATION ON CHOICE OF FUEL

Fuel Choice

TotalPremium ordinary

education below hsc Count 29 59 88

% within education 33.0% 67.0% 100.0%

degree Count 19 53 72


postgraduate Count 10 30 40




Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)




H0:THERE IS NO INFLUENCE OF EDUCATION ON CHOICE OF FUEL

INTERPRETATION:

The pearson coefficient value is 0.544 (>0.05).Hence,the null hypothesis is accepted. The age has no influence on choice of fuel.Most of the groups preferred ordinary fuel irrespective of the education level

41

Table-28

INFLUENCE OF EDUCATION ON SELECTIVITY AMONG PETROL BUNKS

H0:There is no influence of education on selectivity among petrol bunks

INTERPRETATION:

The pearson chi square value of 0.577 is greater than the significance value of 0.05.Hence null hypothesis is accepted .The age has no influence on the selectivity among petrol bunks.

42

Selective

TotalYes No

education below hsc 60 28 88

degree 54 18 72

postgraduate 27 13 40

Total 141 59 200

Value df

Asymp. Sig. (2-

sided)




Table-29

INFLUENCE OF EDUCATION ON PREFERENCE OF COMPANY

COMPANY

TotalHPCL BPCL IOCL

education below hsc Count 22 37 29 88

% within education 25.0% 42.0% 33.0% 100.0%

degree Count 13 35 24 72


postgraduate Count 14 15 11 40


Total Count 49 87 64 200


INTERPRETATION:

The consumer profile depicts that the consumers of BPCL are predominantly degree holders.Hpcl and Bpcl nearly have the same support of postgraduates comparatively larger than Iocl.In the case of “below hsc” category there is equal variation in preference with BPCL holding the majority support.

43

Table-30

INFLUENCE OF EDUCATION ON FACTORS OF CHOOSING A PETROL BUNK


Close to visited

places

Because of

Loyalty cards

Quality and

Quantity Service Quality Nonfuel outlets Brand image

Advice of

friends

Chi-Square 1.275 1.531 4.607 .326 2.517 .960 1.384

df 2 2 2 2 2 2 2

Asymp. Sig. .529 .465 .100 .850 .284 .619 .500

INTERPRETATION:

The significance values of all the factors are above 0.05.Hence the ranking of these factors for choosing a petrol bunk is not influenced by education.

Table-31

44

INFLUENCE OF EDUCATION ON FACTORS OF FUEL


Smooth

running Easy starting Maintenance Pickup Mileage

Chi-Square .001 .555 .215 1.668 1.430

df 2 2 2 2 2

Asymp. Sig. 1.000 .758 .898 .434 .489

INTERPRETATION:

The significance of all the characteristics of fuel is above 0.05.Hence the education does not

influence the ranking of considerations of fuel

45

Table-32

INFLUENCE OF EDUCATION ON PREFERENCE FOR THE ATTRIBUTES OF INFRASTRUCTURE

(ANOVA)

Sum of Squares df Mean Square F Sig.

Paved Driveway Between Groups 2.736 2 1.368 1.649 .195


Total 166.220 199

Illumination Between Groups .307 2 .154 .188 .829


Total 161.555 199

Space Between Groups .334 2 .167 .217 .805


Total 152.000 199

Canopy Between Groups 1.395 2 .697 .733 .482


Total 187.010 197

Multiproduct

Dispenser

Between Groups 2.865 2 1.433 1.283 .279

Within Groups 219.930 197 1.116

Total 222.795 199

H0:There is no variation in preference of attributes of infrastructure among the different groups of education

INTERPRETATION:

The significance values of all the attributes are greater than the value of 0.05.Hence the null hypothesis is accepted. There is no influence of education on the preference of attributes of infrastructure.

46

Table-33

INFLUENCE OF EDUCATION ON PREFERENCE TOWARDS ATM AT PETROL BUNKS

ATM

TotalVery high High Average Low Verylow

education below hsc Count 46 16 13 12 0 87

% within

education

52.9% 18.4% 14.9% 13.8% .0% 100.0%

degree Count 38 10 10 11 2 71

% within

education

53.5% 14.1% 14.1% 15.5% 2.8% 100.0%

postgraduate Count 23 6 6 5 0 40

% within

education

57.5% 15.0% 15.0% 12.5% .0% 100.0%

Total Count 107 32 29 28 2 198

% within

education

54.0% 16.2% 14.6% 14.1% 1.0% 100.0%

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)



Linear-by-Linear

Association

.021 1 .885


H0:There is no influence of education on the preference for atms at petrol bunks

INTERPRETATION:

47

The post graduates have a highest preference for atm,while the graduates have the large proportion of least preferences accounting for about 17.3%,The pearson chi square value is 0.821.Therefore H0 is accepted.There is no significant effect of education on preference of atm.

Table-34

INFLUENCE OF EDUCATION ON PREFERENCE TOWARDS ATM AT PETROL BUNKS

CONVENIENCESTORES

TotalVery high high average low Very low

education below hsc Count 10 15 20 30 12 87

% within education 11.5% 17.2% 23.0% 34.5% 13.8% 100.0%

degree Count 15 10 11 27 8 71


postgraduate Count 6 7 11 15 1 40


Total Count 31 32 42 72 21 198


H0:The education does not influence the preference for convenience stores at petrol bunks

INTERPRETATION:

48

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)



Linear-by-Linear Association 1.449 1 .229


Majority of the respondents opine that convenience stores should be given least preference (36.8%)at petrol bunks. Nearly 59% of the post graduates gave above average importance to convenience stores at petrol bunks. A majority of the graduates and lower literates gave low preference to convenience stores at fuel stations. In the case of pearson coefficient , the value is 0.425 which suggests of no influence of education on preference to convenience stores.

Table-35

INFLUENCE OF EDUCATION ON PREFERENCE OF EATERIES AT PETROL BUNKS

EATERIES

TotalVery high High Average Low Very low

education below hsc 13 12 13 31 19 88

degree 12 9 10 30 11 72

postgraduate 5 12 6 13 4 40

Total 30 33 29 74 34 200

H0:There is no significant effect of education on preference of eateries at petrol bunks

INTERPRETATION:

The pearson chi square value is 0.345, which is greater than 0.05.The null hypothesis is accepted. The education does not have significant influence on preference of eateries at petrol bunks.

49

Value df

Asymp. Sig. (2-

sided)



Linear-by-Linear

Association

1.994 1 .158


Table -36

INFLUENCE OF EDUCATION ON PREFERENCE OF BOOKSTALLS AT PETROL BUNKS

BOOKSTALLS

TotalVery high High Average Low Very Low

education below hsc 12 22 11 20 23 88

degree 12 13 9 28 10 72

postgraduate 2 7 8 18 5 40

Total 26 42 28 66 38 200

Value df

Asymp. Sig. (2-

sided)



Linear-by-Linear

Association

.352 1 .553


H0:There is no influence of education on preference of bookstalls at petrol bunks

INTERPRETATION:

The pearson value of significance is 0.064 (>0.05) .Hence, the null hypothesis is accepted. There is no significant influence of education of preference of bookstalls at petrol bunks.

Table-37

50

ASSOCIATION BETWEEN COMPANY AND TRUST ON FUEL

COMPANY

TRUSTONQUALITY

Total

VERY

HIGH HIGH NORMAL LOW

HPCL Count 5 32 12 0 49

% within COMPANY 10.2% 65.3% 24.5% .0% 100.0%

% within

TRUSTONQUALITY

14.3% 30.5% 21.8% .0% 24.5%

% of Total 2.5% 16.0% 6.0% .0% 24.5%

BPCL Count 22 40 23 2 87

% within COMPANY 25.3% 46.0% 26.4% 2.3% 100.0%

% within

TRUSTONQUALITY

62.9% 38.1% 41.8% 40.0% 43.5%

% of Total 11.0% 20.0% 11.5% 1.0% 43.5%

IOCL Count 8 33 20 3 64

% within COMPANY 12.5% 51.6% 31.3% 4.7% 100.0%

% within

TRUSTONQUALITY

22.9% 31.4% 36.4% 60.0% 32.0%

% of Total 4.0% 16.5% 10.0% 1.5% 32.0%

Total Count 35 105 55 5 200

% within COMPANY 17.5% 52.5% 27.5% 2.5% 100.0%

% within

TRUSTONQUALITY

100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 17.5% 52.5% 27.5% 2.5% 100.0%

INTERPRETATION:

In the case of “very high” trust on quality BP tops the list with 62.9% of all the respondents. In the case of “high” category majority of the respondents are from BP with 38.1%.HP and IOC nearly share the remains. In the case of “average” trust category BP is dominant with 41.8% IOC stands second with 36.4%

In the case of BPCL ,71.3% of the customers have above average trust on quality. In the case of HPCL, 75% of the customers have above average trust on quality. In the case of IOCL , 63% of the

51

customers have above average trust on quality.In the case of IOCL,31.3% of the customers have average trust on quality.In the case of HPCL,24.5% have average trust on quality .26.4% of the customers of BPCL have average trust on quality.

Table-38

INFLUENCE OF COMPANY ON THE FACTORS FOR CHOOSING A FUEL STATION


Close to

visited places

Because of

loyalty card

Quality and

Quantity Service Quality Non fuel oulets Brand image

Advice of

Friends

Chi-Square 4.828 6.309 2.980 3.297 6.952 4.358 4.340

df 2 2 2 2 2 2 2

Asymp. Sig. .089 .043 .225 .192 .031 .113 .114

H0:There is no influence of preference for companies on the priority of factors for choosing a fuel station

INTERPRETATION:

The priority of loyalty programmes and non fuel outlets depends on choice of companies. The priorities of all other factors are

not influenced by company preferences.

52

Chapter-IV

FINDINGS

PATTERN OF CONSUMPTION:

a)Most of the consumers in trichy city refuel their vehicle at selected petrol bunks. The selected petrol bunks vary from one to five. Majority (60%) of the selective people chose 2 petrol bunks,26% of the people chose 1 petrol bunk and 13% chose 3 petrol bunks to refuel.

b) Among the vehicle users, auto rickshaw drivers were highly selective with 89.5%.Two wheeler riders and four wheeler riders had 69.8% and 62.5% selectivity respectively.

c) Majority of the motorists ( 43%) prefer BPCL, followed by IOCL with 32% and HPCL with 24.5% respectively.

d) Four wheelers mostly visit petrol bunk once in a week(46.9%).Two wheelers mostly visit a petrol bunk 1-2 times in a week.

e) In the case of two wheelers about 61% fill 1-2 liters of petrol on an average visit.

f) Majority(71%) of the motorists prefer ordinary fuel compared to the new concept of branded fuels.

FACTORS AFFECTING PATTERN OF CONSUMPTION:

a)The critical factor involved in attracting consumers is the Quality & Quantity of fuel(F-rate=9.50).It is the major driver of consumer behavior in the case of fuel retailing. New concepts like loyalty programmes, non fuel outlets are considered at the last.

b)The next most important factor is the proximity to visited places.(F-rate=6.67) followed by Driveway service(F-rate=5.06).

c) Two wheeler riders ranked the most considered factor as the proximity of petrol bunks to visited places. Quantity & Quality occupies the second position followed by Driveway service.

d)In the four wheeler segment, Driveway service occupies the most valued factor .The second position is occupied by brand image followed by advice of friends.

53

e) Most of the motorists (65%) in the city are of the view that the Quality & Quantity of the fuel is not the same at all fuel stations.

f) Majority of the people (70%) have above average trust on quality at the selected petrol bunks

g)Age does influence the preference of the company, perception of importance of Quality & Quantity of fuel as a factor for choosing a fuel station, Education does not influence the ranking of the factors for choosing a fuel station. Company loyalty does influence the preference of non fuel outlets and loyalty programmes as a factor for choosing fuel station.

h) In the case of two wheeler category, smooth running is the most preferred attribute of function followed by mileage. In the four wheeler category ,maintenance gains importance with the above factors.

PERCEPTION ON IMPORTANCE OF ATTRIBUTES OF INFRASTRUCTURE

Among the attributes of infrastructure, Paved driveway is comparatively considered important(F=8.45).Size of the petrol bunk, Canopy/shelter, Illumination are considered more or less equally important. Multiproduct dispensers receive above average but relatively less importance than all the other attributes. Age does influence the perception of importance of the illumination. Education does not influence the perception of importance of all the attributes of infrastructure.

PERCEPTION ON IMPORTANCE OF TENETS OF SERVICE:

a)Among the tenets of service, courteous behavior of the forecourt attendants(F-rate= 8.89) is the most important .Uniform for attendants and presence of forecourt supervisors acquire above average importance. presence of dealers is preferred on an average scale.

b) Among the additional services rendered, air pressure check is considered as a very high need of the petrol bunk.Wind shield cleaning is considered as highly important.

c) Majority(55.5%) of the motorists preferred self service stations in the city. A relatively large proportion (40.5%) are not in favour of such bunks.

PERCEPTION ON NECESSITY OF NON FUEL OUTLETS

Automated teller machines are the most preferred non fuel outlets at petrol bunks(F-Rate=8.18).Convenience stores acquire better preference than book stalls and eateries. It is to be noted that the latter three outlets are rated below average. Age , education does not have any significant impact on the preference towards non fuel outlets.

54

Chapter-V

SUGGESTIONS

a)The consumers expectation from the product offered centers around Quality&Quantity .Most of the oil marketing companies have used technological innovation to improve the Quality and Quantity. However, the consumers are apprehensive about the Q&Q at fuel stations. The certification for Q&Q should be placed in the petrol bunks within the reach of the consumer’s sight.Awareness programs should be conducted regarding the application of technologies in maintaining Quality & Quantity. Simple Procedure for testing the Quality &Quantity shall be displayed at petrol bunks. The apparatus for conducting such simple tests shall be made available at all petrol bunks and it shall be made when prompted by the consumer.

b)Attractive presentations for maintenance of the vehicle shall be placed at the petrol bunks. Attendants shall be trained on the aspects of maintenance. Attendants shall be prevailed upon to provide regular tips to consumers.

c)Distribution of petrol bunks is a important consideration. Most of the commercial areas are saturated with fuel stations. Residential areas shall be focused upon

d) Operational research techniques such as Optimization, Time and motion study, Queuing theory shall be applied in appointment of the attendants and improvement of their service in a petrol bunk.

e)The dealers shall be empowered to appoint additional staff specifically for peak hours. Time management shall be made compulsory part of the training to the attendants. Incentives shall be provided to better performing attendants in three dimensions :Swiftness,Courtesy,Accuracy

f)Efforts shall be made to appoint separate attendants for air pressure checks at all fuel stations.The service shall be fixed with a nominal price with a fixed percentage for the attendant. Wind shield cleaning is desired at all petrol bunks. The service shall be restored.

g)The company shall ensure presence of the forecourt supervisors for most of the business hours, dealers shall be advised to be present at the petrol bunks at least during the peak hours.

h)The company shall ensure regular care of the paved driveways by undeterred funding and support. The company shall ensure toilet and drinking water facilities at all petrol bunks.

g)The company shall make arrangements to include atm at most of its outlets with due consideration of factors like competitors, demand and location.

h) Promotions shall be customized for different age groups. Short term offers can be made to different age groups based on their needs e.g sun glasses for young people

55

Chapter-VI

CONCLUSION

The survey showed that the primary consideration was quality and quantity of the fuel.They developed an image of a petrol bunk by considering their service,mileage etc.An equally

important criteria was the distribution network of the retail outlets.Two wheelers primarily consider the mileage and smooth running. Among their group nearby petrol bunks are most

popular.Four wheelers tend to consider the maintenance than quality &quantity. Hence they tend to show major interest in brand image. The consumers perceive that there is a relationship between maintenance and quality of the product.The funding to such

infrastructural elements shall not be constrained by economics. The new concepts such as branded fuel ,non retail outlets at fuel stations are not popular with the people. This may be attributed to causes like lack of time and conservatism(i.e resistance to change).The benefits

shall be familiarized by promotions in the local media .Techniques like penetrative pricing,discounts etc. may help in the gaining of marketshare.The concept of facilitated petrol bunks is young in the minds of the people:constant advertising,effective maintenance of the

retail outlets may position these innovations in their mind comfortably.

56

BIBLIOGRAPHY

1. kotler, p. (2001). principles of marketing. New Jersey: Prentice Hall Inc.

2. kothari,C.R(2004).research methodology-methods&techniques. New Delhi:Newage International publishers

3. malhotra,Naresh(2004).marketing research-an applied orientation.NewDelhi:Pearson Education Inc.

57

APPENDIX

QUESTIONNAIRE

PERSONAL INFORMATION:

Name:

Age: (A)15-20 (B)20-30 (C) 30-40 (D) Above 40

Gender:

Education:(A)upto higher secondary (B)undergraduate (C)Postgraduate & above

Occupation:

Income: (A)<5000 (B)5000-10000 (C)10000-15000 (D)15000-20000 (E)>20000

Vehicle with company:

Fuel:Petrol/diesel

1)Do you fill your vehicle only at selected petrol bunks?

(A)yes (B)no

If yes, how many petrol bunks have you choosen--------

2)What company’s petrol bunk do you prefer to fill in A(PRIVATE B)PUBLIC (A)HPCL (B)BPCL (C) IOCL

3)What is your choice of fuel?

(A)branded (B)unbranded/ordinary

4)On a single visit how much quantity do you fill on an average(in litres)

(A)<1 (B)1-2 (C)2-3 (D)3-4 (E)>5

5)How much times do you visit a petrol bunk in a week?

(A)1 (B)1-2 (C)2-3 (D)>3

6)What is the maximum time you are willing to travel to refuel the vehicle?---------

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7)Please rank the reasons you will consider for choosing a fuel station

Rank(A)close/proximity to residence /office(B)Because of loyalty card©Quality & Quantity of fuel(D)Driveway attendants (service)(E)Non fuel outlets(shops,atm)(F)Brand image/AdvertisementG)Advice of friends/relatives(H)Any others

8) The quality &quantity of the fuel purchased by you is the same at all the petrol bunks?

(A)agree (B)disagree (C)Can’t say

9)Your trust upon the fuel quantity & quality purchased by you at the petrol bunk?

(A)very high (B)high (C) average (D)low (E)very low

10)Please rank the following characteristics that are to be considered while filling up a vehicle

(A)smooth running (B)easy starting (C)maintenance (D)Pick up (E)Mileage

11)Please tick the appropriate column for the degree of importance against the factors of appearance in a petrol bunk

Very high high neutral low Very lowPaved drivewayIlluminationSpace/AreaNumber of pumpsMultiproduct dispenser

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12)Please tick the appropriate column for the degree of importance against the aspects of employee service in a petrol bunk

Very high high neutral low Very lowBehaviourUniform for attendantsPresence of forecourt supervisorsPresence of dealers

13)Please tick the appropriate column for the degree of necessity against the various non fuel outlets in a petrol bunk

14)Please tick the appropriate column for the degree of importance against the various facilities/services in a petrol bunk

Very high high neutral low Very lowAir pressure check

Wind shield cleaningDrinking water

ToiletTelephone facilities

15) Do you think whether self service petrol bunks are necessary? A)yes B)no C)can’t say

16) Do you think there is any relationship between the quality of the fuel and the appearance/maintenance of the petrol bunk?

A)yes B)no C)can’t say

17)Please fill below any other comments you have to make about the petrol bunks in trichy city

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Very high high neutral low Very lowATMConvenience storesEateriesBookshops

a study on consumer behaviour towards petroleum retail outlets in trichy city

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