PETROL CONSUMPTION BEHAVIOUR : FACTORS DETERMINING BRAND CHOICE

Abstract

The petrol retail market in Singapore is very interesting the core product, petrol, is undifferentiated; pricing is regulated and standardised. Yet, brand differentiation is alive and real. This study examines consumers' relative perceptions of the major petrol brands with respect to various brand and product attributes and then explores factors determining brand choice decisions. Based on both perception as well as actual purchase behaviour, the 5 major brands of petrol in Singapore ranked in the following order of' popularity: Shell, Caltex, Essa, BP and Mobil. Perception-wise, Esso is strongly associated with intermediate grade petrol, Caltex petrol is perceived to be better for the engine and to render better mileage. Shell has a strong brand image and is favourably perceived on distribution characteristics -- clean and well-kept stations situated at convenient locations with more pumps, meaning shorter queues and offers other motor services. An overall regression for the entire sample shows convenient locations to be the single most significant factor in brand choice decisions. Individual models for each brand suggest that service and intermediate grade petrel are examples of s11ocessful marketing strategies.