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
1

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 INDUSTRY
Indian Oil Corporation limited:
Indias 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 Defense 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 Oil
Storage & Distribution Company of India was incorporated in England to enter the petroleum
products business in India. The business of the Company grew substantially given the
international backing of Shell and it achieved the leadership position in India. In 1952, Shell
and Burmah Oil Company set up Burmah Shell Refineries to set up a refinery in Mumbai.
The entire operations of Burmah Shell in India were nationalized 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 specialty 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

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 198485 to an impressive Rs.1,31,802 crores in FY 2008-09.
The companys 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 countrys western coast. The refinery was
commissioned in July 1999, and it commenced its operations in 2000-01. It is Indias largest
standalone refinery, and constitutes 24% of the countrys refining capacity. Additionally, the
Jamnagar refinery is also the worlds fifth largest refinery at a single place. RIL also
owns23% of the product pipelines in the country.
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
3

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 in theory, 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 the possession 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)Consumers increasing expectations
With growing competition in the petro-retailing sector, todays 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 a
Consumer is looking for whenever he goes to a fuel station to purchase fuel. He looks forQuality & Quantity assurance
4

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
todays petro-retailing environment. These factors areIncreased 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 petroretailing.
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 and
thus, 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
offered at 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 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
5

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-today 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 focused at the bulk consumers and the small consumers are left
unnoticed more or less. But in future, there wont 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 customers 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
management
systems that help customer self-service, dynamic pricing, network planning, demand
forecasting

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
6

followed by BPCL with 21% and HPCL with 18%.Hpcl enjoys a market share of 25.55%
with respect to motor spirit 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
PSUs
IOC
BPCL
HPCL
Total
Private Player
RIL
Essar
Shell
Others
Total

March-2007

December-2007

March-2009

16,540
7,609
7,909
32,058

16,540
8,089
8,060
32,689

18,278
8,251
8,591
35,120

898
1,149
32
2,079
34,137

1800
1,250
35
3,035
35,724

1,800
1,250
37
3,042
36682

Fig2 Statistics of Total no. of Petroleum retail outlets for different OMCs in India
Sources: Indian Oil and Gas and CRISIL Research

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 PSUS while private players are operating

very few. This is because of the fact that prior to 2002 it was only public sector OMCs 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 these entire 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
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
IOC
BPCL
HPCL
RIL
ONGC
ESSAR
SHELL

MS
April-Oct
2006
42.70
28.74
23/69
4.31
0
0.13
0.41
100

HSD
April-Oct
2007
42.55
30.00
25.50
3.75
0
0.85
0.78
100

Total

April-Oct
2006
52.88
23.00
18.36
4.47
0.56
0.06
0.14
100

April-Oct
2007
52.69
23.93
23.30
3.27
0.54
0.35
0.26
100

April-Oct
2006
47.79
26.13
21.03
4.39
4.39
0.10
0.28
100

April-Oct
2007
47.62
26.07
21.41
3.51
0.27
0.60
0.50
100

Fig3: Market share of Petroleum Company in auto fuel sector

Sources: 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 up to October 2007 indicating 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, BPCL and 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.

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 present
comprehensive analysis of consumption of Petroleum Bunks consumed by the people. The
data had been used to cover various aspects like consumption, consumers preference and
customers 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 studys 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

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 of
Convenience.
2.7 Sample Size and Design:
A sample of 200 people was taken on the basis of convenience. The actual consumers were
contacted on 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 Statistical 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

10

Chapter-lll
DATA ANALYSIS AND INTEPRETATION

Table-1
AGE OF THE RESPONDENTS
Age

Frequency

Percent

Valid Percent

Cumulative Percent

15-20

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.

11

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.

12

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 considerable
Quantities.

13

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.

14

Table-3
PROFILE OF AVERAGE REFUELLING AMONG THE MOTORISTS

Average Fill

VEHICLE
<1
Two Wheeler

Count
% within
VEHICLE

Auto rickshaws

Count
% within
VEHICLE

FourWheeler

Count
% within
VEHICLE

Total

Count
% within
VEHICLE

1-2

2-3

3-4

>5

92

22

14

15

4.0%

61.7%

14.8%

9.4%

10.1%

12

.0%

63.2%

36.8%

.0%

.0%

24

.0%

.0%

3.1%

21.9%

75.0%

104

30

21

39

3.0%

52.0%

15.0%

10.5%

19.5%

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.

15

Total

14

100.0%

100.0%

100.0%

20

100.0%

Table-4
FREQUENCY PROFILE OF THE VISIT TO PETROL BUNKS

Frequency of Visit

VEHICLE
1
Two Wheeler

Count
% within
VEHICLE

Auto rickshaws

Count
% within
VEHICLE

Four Wheeler

Count
% within
VEHICLE

Total

Count
% within
VEHICLE

1-2

2-3

>3

Total

42

55

28

24

149

28.2%

36.9%

18.8%

16.1%

100.0%

16

19

5.3%

10.5%

.0%

84.2%

100.0%

15

32

46.9%

6.3%

28.1%

18.8%

100.0%

58

59

37

46

200

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.

16

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.

17

Table-6
PROFILE OF SELECTIVITY AMONG THE VARIOUS VEHICLES

SELECTIVE

VEHICLE

YES
Two Wheeler

Count
% within
VEHICLE

Auto Rickshaw

Count
% within
VEHICLE

Four Wheeler

Count
% within
VEHICLE

Total

Count
% within
VEHICLE

NO

Total

104

45

149

69.8%

30.2%

100.0%

17

19

89.5%

10.5%

100.0%

20

12

32

62.5%

37.5%

100.0%

141

59

200

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

18

Table-7
PROFILE OF SELECTED NUMBER OF PETROL BUNKS

Number of selected petrol

bunks

Frequency

Percentage

37

26%

85

60%

18

13%

>3

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.

19

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%.

20

Table-8
OPINION ON HOMOGENEITY OF QUALITY AND QUANTITY OF FUEL

Frequency

Percent

Valid Percent

Cumulative Percent

Yes

21

10.5

10.5

10.5

No

130

65.0

65.0

75.5

Cant 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-cant 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.

21

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 dont believe in the Q&Q at their
frequented places.

22

Table-9
FACTOR INFLUENCING FUEL STATION SELECTION
(Weighted Average mean)

FACTOR

5 6 7

Total

F-rate

Close to Visited Places

55

32 14

1 1 1

667

6.67

Loyalty Programmes

4 2 5

142

1.42

102 31

1 2 1

950

9.50

Driveway Service

21

50

4 2 1

506

5.06

Non fuel Outlets

3 2 1

75

0.75

Brand image

13 3 2 1

184

1.84

Non fuel Outlets

11

135

1.35

Quality and Quantity

1 2 1

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.

Table-10
23

FACTORS FOR CHOOSING A PETROL BUNK AMONG TWO

WHEELERS
(Friedmann Kendal test)

Vehicle
Two wheeler

Four Wheeler

Mean Rank
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

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.

24

Table-11
FACTORS CONSIDERED DURING PURCHASE OF FUEL
(Friedman Kendall Test)

Table-11(A)
Factors

Mean Rank

Smooth Running

2.43

Easy starting

3.05

Maintenance

3.21

Pick up

3.71

Mileage

2.60

Null hypothesis(Ho): There is no significant difference in the preference given for the different
product related attributes influencing purchase preference of Bar Chocolate by the respondents.
Table-11(B)
N

29

Chi-Square
df

12.462
4

Asymp. Sig.

.014

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.

25

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

845

8.45

Illumination

79

70

40

11

817

8.17

Space

75

81

34

820

8.20

Canopy

87

58

39

16

816

8.16

Multiproduct
Dispenser

68

61

50

16

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 comparably
Considered 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

889

8.89

Uniform for
attendants

72

65

40

22

785

7.85

Presence of
Forecourt

71

60

44

17

769

7.69

53

50

34

17

16

617

6.17

Supervisors
Presence of
Dealers

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

945

9.45

Wind
Shield
Cleaning

74

78

28

15

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

FRATE

Drinking
water

116

45

17

16

849

8.49

Toilet

115

45

23

13

854

8.54

Telephone
Facilities

89

50

31

23

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

FRATE

ATM

109

32

29

28

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.

Figure 14:
29

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.

Table-17
30

NECESSITY OF SELF SERVICE IN PETROL BUNKS

Frequency

Percent

Valid Percent

Cumulative Percent

Yes

111

55.5

55.5

55.5

No

81

40.5

40.5

96.0

4.0

4.0

100.0

200

100.0

100.0

Cant Say
Total

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

Table-18
31

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

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.

Table-19
32

INFLUENCE OF AGE ON PREFERENCE OF COMPANY

(chi squared test)

COMPANY

AGE
HPCL

BPCL

IOCL

Total

15-20

20-30

13

25

30-40

20

18

12

50

Above 40

21

54

46

121

49

87

64

200

Total

Value

Asymp. Sig. (2sided)

df

Pearson Chi-Square

13.773a

.032

Likelihood Ratio

14.378

.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.

Table-20
33

INFLUENCE OF AGE ON CHOICE OF FUEL

(chi squared test)

Fuel Choice

AGE

Premium

Ordinary

Total

15-20

20-30

16

25

30-40

14

36

50

Above 40

34

87

121

58

142

200

Total

Value

df

Asymp. Sig. (2sided)

Pearson Chi-Square

.698a

.874

Likelihood Ratio

.675

.879

N of Valid Cases

200

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.

Table-21
34

INFLUENCE OF AGE ON SELECTIVITY AMONG PETROL BUNKS

(Cross tabulation and Chi squared test)

Selective

AGE

Yes

No

Total

Count

% within AGE

50.0%

50.0%

100.0%

Count

16

25

% within AGE

64.0%

36.0%

100.0%

Count

31

19

50

% within AGE

62.0%

38.0%

100.0%

Count

92

29

121

% within AGE

76.0%

24.0%

100.0%

Count

141

59

200

% within AGE

70.5%

29.5%

100.0%

15-20

20-30

30-40

Above 40

Total

Value

df

Asymp. Sig. (2sided)

Pearson Chi-Square

4.834a

.184

Likelihood Ratio

4.736

.192

N of Valid Cases

200

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.

Table-22
35

INFLUENCE OF AGE ON AVERAGE FILL PER VISIT

(Cross tabulation and Chi squared test)

Average Fill
<1
AGE

15-20

Count
% within AGE

20-30

Count
% within AGE

30-40

Count
% within AGE

Above 40

Count
% within AGE

Total

Count
% within AGE

1-2

2-3

3-4

>5

Total

.0%

100.0%

.0%

.0%

.0%

100.0%

15

25

.0%

60.0%

4.0%

4.0%

32.0%

100.0%

28

50

4.0%

56.0%

16.0%

16.0%

8.0%

100.0%

57

21

12

27

121

3.3%

47.1%

17.4%

9.9%

22.3%

100.0%

104

30

21

39

200

3.0%

52.0%

15.0%

10.5%

19.5%

100.0%

Value

Asymp. Sig. (2sided)

df

Pearson Chi-Square

16.534a

12

.168

Likelihood Ratio

20.368

12

.060

N of Valid Cases

200

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

Frequency of Visit

AGE
1
15-20

Total

1-2

2-3

20-30

11 Value

30-40

11

5
15

>3
1

df

Total
2

3Asymp. Sig.6 (2sided) 9

15

4
25
50

Pearson
Chi-Square 35 12.029a39
Above 40

918

29.212

121

Likelihood Ratio

937

46.192

200

N of Valid Cases

58

12.39459
200

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.

Table-24
37

INFLUENCE OF AGE ON PREFERENCE OF FACTORS FOR CHOOSING A FUEL

STATION

(Kruskall Wallis Test)

38

Close to visited Because of

places
Loyalty card
Chi-Square
Df
Asymp. Sig.

Quantity and
Quality
Service Quality

Non fuel
outlets

Ad
f

Brand image

3.654

4.328

8.492

3.122

4.448

7.152

.301

.228

.037

.373

.217

.067

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

Table-25
INFLUENCE OF AGE ON PREFERRED ATTRIBUTES OF FUEL

(Kruskall Wallis Test)

39

Smooth Running
Chi-Square
df
Asymp. Sig.

Easystarting

Maintenance

Pickup

Mileage

8.149

1.085

6.915

7.678

2.494

.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.

Table-26
INFLUENCE OF AGE GROUPS ON THE PERCEIVED IMPORTANCE OF THE
ATTRIBUTES OF INFRASTRUCTURE
(ANOVA)

40

Sum of Squares
Paved driveway

Illumination

Space

Canopy

Multiproduct
dispenser

Between Groups

df

Mean Square

4.166

1.389

Within Groups

162.054

196

.827

Total

166.220

199

6.918

2.306

Within Groups

154.637

196

.789

Total

161.555

199

4.944

1.648

Within Groups

147.056

196

.750

Total

152.000

199

6.339

2.113

Within Groups

180.672

194

.931

Total

187.010

197

.510

.170

Within Groups

222.285

196

1.134

Total

222.795

199

Between Groups

Between Groups

Between Groups

Between Groups

Sig.

1.679

.173

2.923

.035

2.197

.090

2.269

.082

.150

.930

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.

Table-27
INFLUENCE OF EDUCATION ON CHOICE OF FUEL

41

Fuel Choice
Premium
education

below hsc

Count
% within education

degree

postgraduate

Total

59

88

33.0%

67.0%

100.0%

19

53

72

26.4%

73.6%

100.0%

10

30

40

25.0%

75.0%

100.0%

58

142

200

29.0%

71.0%

100.0%

Count
% within education
Count
% within education

Total

29

Count
% within education

ordinary

Chi-Square Tests

Value

Asymp. Sig. (2sided)

df

Pearson Chi-Square

1.218a

.544

Likelihood Ratio

1.215

.545

N of Valid Cases

200

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

Table-28
INFLUENCE OF EDUCATION ON SELECTIVITY AMONG PETROL BUNKS

42

Selective
Yes
education

No

Total

below hsc

60

28

88

degree

54

18

72

postgraduate

27

13

40

141

59

200

Total

Value

Asymp. Sig. (2sided)

df

Pearson Chi-Square

1.102a

.577

Likelihood Ratio

1.118

.572

N of Valid Cases

200

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.

Table-29
INFLUENCE OF EDUCATION ON PREFERENCE OF COMPANY

43

COMPANY
HPCL
education

below hsc

Count
% within education

degree

postgraduate

Total

29

88

25.0%

42.0%

33.0%

100.0%

13

35

24

72

18.1%

48.6%

33.3%

100.0%

14

15

11

40

35.0%

37.5%

27.5%

100.0%

49

87

64

200

24.5%

43.5%

32.0%

100.0%

Count
% within education

Total

37

Count
% within education

IOCL

22

Count
% within education

BPCL

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.

Table-30
INFLUENCE OF EDUCATION ON FACTORS OF CHOOSING A PETROL BUNK

(Kruskall Wallis Test)

44

Close to visited Because of

places
Loyalty cards
Chi-Square
df
Asymp. Sig.

Quality and
Quantity

Ad
fr

Service Quality Nonfuel outlets Brand image

1.275

1.531

4.607

.326

2.517

.960

.529

.465

.100

.850

.284

.619

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
INFLUENCE OF EDUCATION ON FACTORS OF FUEL

(Kruskall Wallis Test)

45

Smooth
running
Chi-Square
df
Asymp. Sig.

Easy starting

Maintenance

Pickup

Mileage

.001

.555

.215

1.668

1.430

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

Table-32
INFLUENCE OF EDUCATION ON PREFERENCE FOR THE ATTRIBUTES OF
INFRASTRUCTURE
(ANOVA)

46

Sum of Squares
Paved Driveway

Illumination

Space

Canopy

Multiproduct
Dispenser

Between Groups

df

Mean Square

2.736

1.368

Within Groups

163.484

197

.830

Total

166.220

199

.307

.154

Within Groups

161.248

197

.819

Total

161.555

199

.334

.167

Within Groups

151.666

197

.770

Total

152.000

199

1.395

.697

Within Groups

185.616

195

.952

Total

187.010

197

2.865

1.433

Within Groups

219.930

197

1.116

Total

222.795

199

Between Groups

Between Groups

Between Groups

Between Groups

Sig.

1.649

.195

.188

.829

.217

.805

.733

.482

1.283

.279

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.

Table-33
INFLUENCE OF EDUCATION ON PREFERENCE TOWARDS ATM AT PETROL BUNKS

47

ATM
Very high
education

below hsc

Count
% within
education

degree

postgraduate

Total

Verylow
12

52.9%

18.4%

14.9%

13.8%

.0%

38

10

10

11

53.5%

14.1%

14.1%

15.5%

2.8%

23

57.5%

15.0%

15.0%

12.5%

.0%

107

32

29

28

54.0%

16.2%

14.6%

14.1%

1.0%

Chi-Square Tests

Value

Asymp. Sig. (2sided)

df

Pearson Chi-Square

4.381a

.821

Likelihood Ratio

4.903

.768

Linear-by-Linear
Association

.021

.885

N of Valid Cases

198

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

INTERPRETATION:
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.
48

Total

13

Count
% within
education

Low

16

Count
% within
education

Average

46

Count
% within
education

High

100.

100.

100.

100.

Table-34
INFLUENCE OF EDUCATION ON PREFERENCE TOWARDS ATM AT PETROL BUNKS

CONVENIENCESTORES
Very high
education

below hsc

Count
% within education

degree

Count
% within education

postgraduate

Count
% within education

Total

Count
% within education

high

average

low

Very low

Total

10

15

20

30

12

87

11.5%

17.2%

23.0%

34.5%

13.8%

100.0%

15

10

11

27

71

21.1%

14.1%

15.5%

38.0%

11.3%

100.0%

11

15

40

15.0%

17.5%

27.5%

37.5%

2.5%

100.0%

31

32

42

72

21

198

15.7%

16.2%

21.2%

36.4%

10.6%

100.0%

Chi-Square Tests

Asymp. Sig. (2Value

df

sided)

Pearson Chi-Square

8.091a

.425

Likelihood Ratio

9.151

.330

Linear-by-Linear Association

1.449

.229

N of Valid Cases

198

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

INTERPRETATION:
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.
49

Table-35
INFLUENCE OF EDUCATION ON PREFERENCE OF EATERIES AT PETROL
BUNKS

EATERIES
Very high
education

High

Average

Low

Very low

Total

below hsc

13

12

13

31

19

88

degree

12

10

30

11

72

12

13

40

30

33

29

74

34

200

postgraduate
Total

Value

Asymp. Sig. (2sided)

df

Pearson Chi-Square

8.974a

.345

Likelihood Ratio

8.315

.403

Linear-by-Linear
Association

1.994

.158

N of Valid Cases

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.

Table -36
50

INFLUENCE OF EDUCATION ON PREFERENCE OF BOOKSTALLS AT PETROL BUNKS

BOOKSTALLS
Very high
education

High

Average

Low

Very Low

Total

below hsc

12

22

11

20

23

88

degree

12

13

28

10

72

18

40

26

42

28

66

38

200

postgraduate
Total

Value

Asymp. Sig. (2sided)

df

Pearson Chi-Square

14.782a

.064

Likelihood Ratio

15.311

.053

Linear-by-Linear
Association

.352

.553

N of Valid Cases

200

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
ASSOCIATION BETWEEN COMPANY AND TRUST ON FUEL

51

TRUSTONQUALITY

COMPANY

VERY HIGH
HPCL

Count

IOCL

LOW

Total

32

12

49

% within COMPANY

10.2%

65.3%

24.5%

.0%

100.0%

% within
TRUSTONQUALITY

14.3%

30.5%

21.8%

.0%

24.5%

2.5%

16.0%

6.0%

.0%

24.5%

22

40

23

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%

33

20

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%

4.0%

16.5%

10.0%

1.5%

32.0%

35

105

55

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%

17.5%

52.5%

27.5%

2.5%

100.0%

Count

Count

% of Total
Total

NORMAL

% of Total
BPCL

HIGH

Count

% of Total

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
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.

52

Table-38
INFLUENCE OF COMPANY ON THE FACTORS FOR CHOOSING A FUEL STATION

(Kruskall Wallis Test)

Close to
visited places

Because of
loyalty card

Quality and
Quantity

Chi-Square

4.828

6.309

2.980

3.297

6.952

4.358

4.340

df

Asymp. Sig.

.089

.043

.225

.192

.031

.113

.114

Service Quality Non fuel oulets Brand image

Advice of
Friends

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.

53

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(Frate=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.

54

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(FRate=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.

55

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 consumers 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

56

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.

57

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.

APPENDIX
58

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 companys 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?--------7)Please rank the reasons you will consider for choosing a fuel station
59

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/Advertisement
G)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)Cant 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 low

Paved driveway
Illumination
Space/Area
Number of pumps
Multiproduct
dispenser
12)Please tick the appropriate column for the degree of importance against the aspects of employee
service in a petrol bunk
60

Very high

high neutral low Very low

Behaviour
Uniform for attendants
Presence of forecourt
supervisors
Presence of dealers
13)Please tick the appropriate column for the degree of necessity against the various non fuel
outlets in a petrol bunk
Very high

high neutral low Very low

ATM
Convenience stores
Eateries
Bookshops
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 low

Air pressure check

Wind shield cleaning
Drinking water
Toilet
Telephone facilities

15) Do you think whether self service petrol bunks are necessary?
A)yes B)no C)cant 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)cant say
17)Please fill below any other comments you have to make about the petrol bunks in trichy city

61

62