Today's retail fuels marketplace is changing in dramatic fashion. Consumers are keeping cars longer, which has renewed their focus on performance and quality, according to the [image-nocss] report. At the same time, price-competitive retailers continue to grow and have upped the ante by offering aggressive promotions. These include deep discounts at the pump, keeping price and value top-of-mind for consumers.
In order to keep pace with these new marketplace realities, NPD has changed the way Motor Fuels Index captures brand purchase drivers. The results of this new methodology are yielding some fascinating insights into why consumers buy, NPD reported.
What Really Drives Brand Choice?
As in the past, the newly enhanced Motor Fuels Index shows location and price are the most often cited reasons for purchasing a brand of gasoline. Consumers also frequently cite the convenience of paying at the pump and credit-card acceptance. But does the broad appeal of these factors suggest they are the most important?
The new survey design goes the extra mile by asking consumers to select the single-most important reason for their brand selection. Not surprisingly, there is a core segment of consumers who are simply price- and convenience-motivated. But two other interesting factors come into play to illustrate what really drives choice, given that good location and competitive prices are factors most retailers strive to offer.
When looking at the top five factors consumers rank as most important, it is clear that quality fuels and brand preference play major roles. Consumers reporting these factors go on to define more specifically what they value about the brand.
Also of note is the importance of a discount, rebate or reward program. While not among the top five most-often-cited reasons for brand purchase, discounts, rebates and rewards are very important to discount-oriented consumers.
Click here to see the complete NPD report for more details on these factors.
Finding Brand Relevance
These new dimensions in the Motor Fuels Index represent the most significant enhancements to research in this marketplace in more than 30 years. Understanding in a more detailed way how consumers perceive individual brands will enable marketers to fine-tune brand strategies that are most relevant to their customers.
Brand-level data illustrates that consumers clearly differentiate the various offers both on the price/promotion and quality-differentiated brand positions. Staying in tune with consumer response to new developments in fuel rewards and discounts, attitudes toward vehicle longevity and performance, and the emergence of a post-recession economy will allow fuel marketers to craft relevant and timely strategies for keeping their brands on the right track.
Click hereto read the complete NPD report.
The NPD Group, Port Washington, N.Y. is a leading provider of consumer information for the North American petroleum marketing and convenience retailing industries. Industry leaders use the essential market information available in NPD's Motor Fuels Index and Convenience Store Monitor to assist in making more effective business decisions.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.