Factors influencing brand loyalty in the petroleum retail industry: a case of service stations in Montclair.

Abstract

ABSTRACT The petroleum retail market in South African consists of several brands for petroleum fuels. These petroleum products are often referred to as the liquid fuels. The major petroleum brands are BP, Caltex, Engen, Sasol, Shell and Total. Consumers are enticed everyday with a number of petroleum product brands to satisfy their fuel requirements. The use of brands therefore assists the consumer in the decision-making process to facilitate a quick purchase-making decision without compromising the quality of the product purchased. The study was conducted to investigate factors that influence customer brand loyalty in the petroleum retail sector. A semi-structured questionnaire was used as a research tool to investigate the factors that consumers consider crucial when selecting a specific petrol service station to buy petroleum products such as petrol or diesel. Factor analysis was used in the analysis of results. A brand loyalty framework developed by Ramis et al (2014) was used in identifying factors that have an impact on brand loyalty. The study concluded that the brand of a service station has no significant effect on the loyalty of customers to a particular service station. It was however found that not one factor but a combination of factors are what consumers consider when choosing a particular petrol service station. These factors include among others, ample space for parking, fuel quality, service quality, accessibility to the service station and availability of added amenities such convenience shop, tyre pressure and car wash facilities. As the petroleum retail industry is regulated in particular the petrol price retailers can enhance their competitiveness by improving on the quality of the type of service offered other than competing on the petrol price. Further it is important to ensure that their staff especially pump attendants attend customer service training to improve service quality. Service stations can conduct customer surveys to help them know exactly what their customers want to be able to apply necessary improvements or adjustments regarding the products and /or service they offer.