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:
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 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 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

2
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.

3
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 a
Consumer is looking for whenever he goes to a fuel station to purchase fuel. He looks for-

4
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 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

5
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
management
systems that help customer self-service, dynamic pricing, network planning, demand
forecasting

6
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-2009

PSU’s
IOC 16,540 16,540 18,278
BPCL 7,609 8,089 8,251
HPCL 7,909 8,060 8,591
Total 32,058 32,689 35,120
Private Player
RIL 898 1800 1,800
Essar 1,149 1,250 1,250
Shell 32 35 37
Others 2,079 3,035 3,042
Total 34,137 35,724 36682

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

7
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 MS HSD Total

share of
companies
April-Oct April-Oct April-Oct April-Oct April-Oct April-Oct
2006 2007 2006 2007 2006 2007
IOC 42.70 42.55 52.88 52.69 47.79 47.62
BPCL 28.74 30.00 23.00 23.93 26.13 26.07
HPCL 23/69 25.50 18.36 23.30 21.03 21.41
RIL 4.31 3.75 4.47 3.27 4.39 3.51
ONGC 0 0 0.56 0.54 4.39 0.27
ESSAR 0.13 0.85 0.06 0.35 0.10 0.60
SHELL 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 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 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.

8
 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, consumer’s preference and
customer’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

9
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 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

10
 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.

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 Valid
Frequency Percent 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.

Table-3

14
 PROFILE OF AVERAGE REFUELLING AMONG THE MOTORISTS

Average Fill
VEHICLE
<1 1-2 2-3 3-4 >5 Total
Two Wheeler Count 6 92 22 14 15 149
% within 4.0% 61.7% 14.8% 9.4% 10.1% 100.0%
VEHICLE
Auto rickshaws Count 0 12 7 0 0 19
% within .0% 63.2% 36.8% .0% .0% 100.0%
VEHICLE
FourWheeler Count 0 0 1 7 24 32
% within .0% .0% 3.1% 21.9% 75.0% 100.0%
VEHICLE
Total Count 6 104 30 21 39 200
% within 3.0% 52.0% 15.0% 10.5% 19.5% 100.0%
VEHICLE

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
 Table-4
FREQUENCY PROFILE OF THE VISIT TO PETROL BUNKS

Frequency of Visit
VEHICLE
1 1-2 2-3 >3 Total
Two Wheeler Count 42 55 28 24 149
% within 28.2% 36.9% 18.8% 16.1% 100.0%
VEHICLE
Auto rickshaws Count 1 2 0 16 19
% within 5.3% 10.5% .0% 84.2% 100.0%
VEHICLE
Four Wheeler Count 15 2 9 6 32
% within 46.9% 6.3% 28.1% 18.8% 100.0%
VEHICLE
Total Count 58 59 37 46 200
% within 29.0% 29.5% 18.5% 23.0% 100.0%
VEHICLE

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 NO Total
Two Wheeler Count 104 45 149
% within 69.8% 30.2% 100.0%
VEHICLE
Auto Rickshaw Count 17 2 19
% within 89.5% 10.5% 100.0%
VEHICLE
Four Wheeler Count 20 12 32
% within 62.5% 37.5% 100.0%
VEHICLE
Total Count 141 59 200
% within 70.5% 29.5% 100.0%
VEHICLE

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 Frequency Percentage

bunks

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.

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
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.

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 don’t believe in the Q&Q at their
frequented places.

22
 Table-9
FACTOR INFLUENCING FUEL STATION SELECTION

(Weighted Average mean)

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

Close to Visited 55 3 1 3 1 1 1 667 6.67

Places 2 4

Loyalty Programmes 5 7 4 6 4 2 5 142 1.42

Quality and Quantity 10 3 5 3 1 2 1 950 9.50

2 1

Driveway Service 21 5 6 3 4 2 1 506 5.06

0

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

Brand image 7 5 8 1 3 2 1 184 1.84

3

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

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.

23
 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.

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 12.462
df 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 TOTAL F-RATE

LOW

Paved 92 61 36 11 0 845 8.45

Driveway

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 68 61 50 16 5 771 7.71

Dispenser

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 AVERAGE LOW VERY TOTAL F-RATE

HIGH LOW

Courteous 122 48 27 3 0 889 8.89

behaviour

Uniform for 72 65 40 22 1 785 7.85

attendants

Presence of 71 60 44 17 8 769 7.69

Forecourt

Supervisors

Presence of 53 50 34 17 16 617 6.17

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 TOTAL F-RATE

LOW

Air 160 25 15 0 0 945 9.45

Pressure
check

Wind 74 78 28 15 5 801 8.01

Shield
Cleaning

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 116 45 17 16 6 849 8.49

water

Toilet 115 45 23 13 4 854 8.54

Telephone 89 50 31 23 7 791 7.91

Facilities

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 VERY HIGH AVERAGE LOW VERY TOTAL F-

OUTLETS HIGH LOW 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.

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
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

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 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.

Table-19
INFLUENCE OF AGE ON PREFERENCE OF COMPANY

32
 (chi squared test)

COMPANY
AGE
HPCL BPCL IOCL Total
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

Asymp. Sig. (2-

Value df 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.

Table-20
INFLUENCE OF AGE ON CHOICE OF FUEL

33
 (chi squared test)

Fuel Choice
Premium Ordinary Total
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
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
INFLUENCE OF AGE ON SELECTIVITY AMONG PETROL BUNKS

34
 (Cross tabulation and Chi squared test)

Selective
Yes No Total
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%
Total Count 141 59 200
% within AGE 70.5% 29.5% 100.0%

Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 4.834a 3 .184
Likelihood Ratio 4.736 3 .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
INFLUENCE OF AGE ON AVERAGE FILL PER VISIT

35
 (Cross tabulation and Chi squared test)

Average Fill
<1 1-2 2-3 3-4 >5 Total
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%

Asymp. Sig. (2-

Value df sided)
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

Table-23

36
 INFLUENCE OF AGE ON FREQUENCY OF VISIT

Frequency of Visit
AGE
1 1-2 2-3 >3 Total
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

Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 12.029a 9 .212

Likelihood Ratio 12.394 9 .192

.
N of Valid Cases 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.

37
 Table-24
INFLUENCE OF AGE ON PREFERENCE OF FACTORS FOR CHOOSING A FUEL
STATION

(Kruskall Wallis Test)

Close to visited Because of Quantity and Non fuel Advice of

places Loyalty card Quality Service Quality outlets Brand image 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

(Kruskall Wallis Test)

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
Within Groups 154.637 196 .789
Total 161.555 199
Space Between Groups 4.944 3 1.648 2.197 .090
Within Groups 147.056 196 .750
Total 152.000 199
Canopy Between Groups 6.339 3 2.113 2.269 .082
Within Groups 180.672 194 .931
Total 187.010 197
Multiproduct Between Groups .510 3 .170 .150 .930
dispenser 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:

40
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

Fuel Choice
Premium ordinary Total
education below hsc Count 29 59 88
% within education 33.0% 67.0% 100.0%
degree Count 19 53 72
% within education 26.4% 73.6% 100.0%
postgraduate Count 10 30 40
% within education 25.0% 75.0% 100.0%
Total Count 58 142 200
% within education 29.0% 71.0% 100.0%

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 1.218a 2 .544
Likelihood Ratio 1.215 2 .545
N of Valid Cases 200

41
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

Selective
Yes No Total
education below hsc 60 28 88
degree 54 18 72
postgraduate 27 13 40
Total 141 59 200

Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 1.102a 2 .577
Likelihood Ratio 1.118 2 .572
N of Valid Cases 200

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

INTERPRETATION:

42
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

COMPANY
HPCL BPCL IOCL Total
education below hsc Count 22 37 29 88
% within education 25.0% 42.0% 33.0% 100.0%
degree Count 13 35 24 72
% within education 18.1% 48.6% 33.3% 100.0%
postgraduate Count 14 15 11 40
% within education 35.0% 37.5% 27.5% 100.0%
Total Count 49 87 64 200
% within education 24.5% 43.5% 32.0% 100.0%

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

(Kruskall Wallis Test)

Close to visited Because of Quality and Advice of

places Loyalty cards Quantity Service Quality Nonfuel outlets Brand image 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.

44
 Table-31
INFLUENCE OF EDUCATION ON FACTORS OF FUEL

(Kruskall Wallis Test)

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
Within Groups 163.484 197 .830
Total 166.220 199
Illumination Between Groups .307 2 .154 .188 .829
Within Groups 161.248 197 .819
Total 161.555 199
Space Between Groups .334 2 .167 .217 .805
Within Groups 151.666 197 .770
Total 152.000 199
Canopy Between Groups 1.395 2 .697 .733 .482
Within Groups 185.616 195 .952
Total 187.010 197
Multiproduct Between Groups 2.865 2 1.433 1.283 .279
Dispenser 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:

46
 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

ATM
Very high High Average Low Verylow Total
education below hsc Count 46 16 13 12 0 87
% within 52.9% 18.4% 14.9% 13.8% .0% 100.0%
education
degree Count 38 10 10 11 2 71
% within 53.5% 14.1% 14.1% 15.5% 2.8% 100.0%
education
postgraduate Count 23 6 6 5 0 40
% within 57.5% 15.0% 15.0% 12.5% .0% 100.0%
education
Total Count 107 32 29 28 2 198
% within 54.0% 16.2% 14.6% 14.1% 1.0% 100.0%
education

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 4.381a 8 .821
Likelihood Ratio 4.903 8 .768
Linear-by-Linear .021 1 .885
Association
N of Valid Cases 198

47
 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.

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

CONVENIENCESTORES
Very high high average low Very low Total
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
% within education 21.1% 14.1% 15.5% 38.0% 11.3% 100.0%
postgraduate Count 6 7 11 15 1 40
% within education 15.0% 17.5% 27.5% 37.5% 2.5% 100.0%
Total Count 31 32 42 72 21 198
% within education 15.7% 16.2% 21.2% 36.4% 10.6% 100.0%

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)

Pearson Chi-Square 8.091a 8 .425

Likelihood Ratio 9.151 8 .330
Linear-by-Linear Association 1.449 1 .229
N of Valid Cases 198

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

48
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.

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

EATERIES
Very high High Average Low Very low Total
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

Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 8.974a 8 .345
Likelihood Ratio 8.315 8 .403
Linear-by-Linear 1.994 1 .158
Association
N of Valid Cases 200

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

49
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
INFLUENCE OF EDUCATION ON PREFERENCE OF BOOKSTALLS AT PETROL
BUNKS

BOOKSTALLS
Very high High Average Low Very Low Total
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

Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 14.782a 8 .064
Likelihood Ratio 15.311 8 .053
Linear-by-Linear .352 1 .553
Association
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.

50
 Table-37
ASSOCIATION BETWEEN COMPANY AND TRUST ON FUEL

TRUSTONQUALITY
COMPANY VERY
HIGH HIGH NORMAL LOW Total
HPCL Count 5 32 12 0 49
% within COMPANY 10.2% 65.3% 24.5% .0% 100.0%
% within 14.3% 30.5% 21.8% .0% 24.5%
TRUSTONQUALITY
% 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 62.9% 38.1% 41.8% 40.0% 43.5%
TRUSTONQUALITY
% 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 22.9% 31.4% 36.4% 60.0% 32.0%
TRUSTONQUALITY
% 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 100.0% 100.0% 100.0% 100.0% 100.0%
TRUSTONQUALITY
% 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

51
 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.

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

(Kruskall Wallis Test)

Close to Because of Quality and Advice of

visited places loyalty card Quantity Service Quality Non fuel oulets Brand image 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
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(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.

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(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.

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 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

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 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?---------

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)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 neutra lo Very low

high l w
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 neutra lo Very low
high l w
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 neutra lo Very low

high l w
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 neutra lo Very low

high l w
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)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

61
62