Market study explains consumer preferences

  • Market study explains consumer preferences

    Convenience Store Decisions published the results of a study from Market Force that identifies the key factors that drive customers to select their favorite fuel retailers. Over 10,000 consumers were surveyed. Approximately 73% were women and 27% were men.

    The results were split into two categories:  Convenience Stores and Big Box (including grocery stores). When asked where did they last visit for their most recent trip to refuel, 71% visited a c-store, and 28% visited a big-box retailer.

    The key determining factors for selecting a fuel retailer were

    1. Price
    2. Payment Options
    3. Fuel Quality
    4. Ease of Entering and Exiting

    “The brands are tightly clustered in nearly every category, which shows just how fiercely competitive this industry is,” said Cheryl Flink, chief strategy officer for Market Force Information. “With drivers having so many options to choose from, gas stations and convenience stores must excel in areas beyond price, such as offering multiple payment options or specialty foods to attract loyal, repeat customers.”

    What does this mean from a fuel price management perspective? When determining fuel pricing strategies, the strategy of gaining volumes simply by offering low prices may not be the best way to optimize overall store profits. Take into account the competitive strengths and weaknesses of each location in terms of the consumer determining factors listed above, and see if the market will bear higher margins based on what the store has to offer. Use fuel pricing software like PriceAdvantage to experiment with different strategies. Execute the fuel pricing strategies so you can be sure every store is always priced where you want it to be all the time.  And monitor store results with fuel volume and margin analysis, the correlation between forecourt and in-store transactions, and competitor behavior such as which competitor is first to lead and which typically follows.

    PriceAdvantage allows you to deliver retail fuel excellence, and develop loyal customers who are delighted to recommend your stores to others.

    Comments are closed.