Once upon a time, gasoline brands were heavily promoted and marketed, and you didn’t have to pump it yourself. However, in the ensuing years a number of factors have contributed to a steady decline in brand loyalty when it comes time to pay at the pump. Electronic engine controls that adjust for octane rating, national standards on fuel quality and sharp spikes in gasoline prices – all have disrupted traditional buying patterns.
According to NPD’s Motor Fuels Index, which tracks consumer motor fuel purchasing behaviors, drivers who are more than 65 years old, have always been more likely to limit brand choice to only one brand. However, younger drivers historically have been more willing to shop around.
The latest study from the market research group says the percentage of people reporting they “always buy one brand of gasoline” is 28% in the first quarter of 2009, compared to 34% in the first quarter of 2000.
When comparing the first quarter 2009 loyalty to the first quarter of 2000 research, the age group that experienced the greatest decline was the 30-to-44 age segment. In 2000, 18- to 29-year-olds were the least brand loyal. In the intervening nine years, many of them brought their brand switching behavior into the 30-to-44 age bracket.
Thus have the classic “pig moving through the python” marketing trend, which is also evident in the vehicle buying behaviors of people as they age, much to the detriment of domestic auto companies who lost a generation of buyers to offshore nameplates and have yet to prove they can get them back.
In petrol preferences, compared to overall brand loyalty, the 30-to-44 age group is now the most likely group to try multiple brands among those who have purchased a major brand, according to NPD.
“I believe we can expect the trend to continue as drivers, ages 18 to 29, also exhibit less loyalty than previous generations,” says David Portalatin, industry analyst for NPD’s automotive unit. “This group is beginning to be influenced by the ‘echo boomers,’ children of baby boomers, who will be the largest generation of drivers in the history of the automobile.”
NPD analyzed the most loyal consumers (those more than 65 years old who only use one brand) and found their brand choice is likely to be related to the credit card used. Moreover, while quality and performance always will be important to the gasoline purchase decision, younger consumers who report loyalty to a single brand also report their brand choice is more likely t driven by the convenience store where they buy gas. So much for getting your windshield washed, or even having an attendant pump gas. New Jersey remains an exception to this almost universal, self-serve trend.
“It’s going to take best-in-class retailing, including fresh food offerings and a diversity of products and services to attract and retain drivers’ fuel purchases in the future,” claims Portalatin. “Gasoline marketers will want to leverage today’s technology to implement loyalty promotions at the pump, such as discounts, rebates, and the rewards tied to in-store purchasing.”