Filed under: Trends, Marketing/Advertising, First Drive
Gas buyers favor brand, not price
Oil company advertising is apparently much more effective than we had originally thought. As gasoline prices creep up towards $4.00 per gallon (already there in Southern California), consumers are still more likely to purchase fuel based on brand over price.
According to NPD Group analyst David Portalatin, consumers cite "product performance" as their justification for buying one particular brand over another. It's all due to very effective branding and marketing, cites Portalatin. (We'd have to agree, as we've yet to meet anyone who can discern a difference between a tank of Chevron or Costco fuel from the driver's seat.) Now that the massive oil mergers are behind them, the petroleum giants are focusing on selling "quality" to differentiate themselves from the discount fuel stations. As consumers continue to blindly drive towards big brand gasoline, their efforts are apparently working -- regardless of cost. Let's just hope Starbucks doesn't catch wind of this trend and try a new source of revenue...
[Source Advertising Age, Photo by David McNew, Getty Images]
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Reader Comments (Page 1 of 4)
Matt 10:33AM (4/22/2008)
I'm guilty; I buy Shell whenever possible.
Everyone else, please put your posts below this one. Thanks.
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Braden 11:07AM (4/22/2008)
I've had several oil analyses done, and several times the analyst has suggested that I should run Shell and avoid BP, citing anecdotal evidence that it does help oil health & engine longevity.
Truth or not, the guy has been doing this for a long time and has seen enough motors that I figure it doesn't really hurt. I prefer Shell, avoid BP, and other than that I'm indifferent. There's a Marathon and a GetGo (Giant Eagle's gas chain) near my office and I use both of those equally, with preference only to GetGo when I have a gas discount from grocery shopping. :)
dea911 11:14AM (4/22/2008)
Actually...I notice a BIG differnce between Costco gas (what i used to get) and Chevron gas (what I now get).
I used to fill up with Costco gas..and only acheived about 17 mpg on my 325i. I switched to Chevron (pay about .20 gallon more) and average about 21 mpg on a tank.
That makes a big difference in the long run. About 60 miles to a tank. That allows me to go an extra day or two on each tank. I will never buy Costco gas (or any other discount gas) again.
naggs 11:20AM (4/22/2008)
the tier 1 gas (shell, mobil, chevron) has been proven to leave fewer deposites. just because it is in the comercials does not mean its bull.
it also dynos higher on some engines. i know ls1 can dyno as much as +-5 hp depending on the brand of fuel.
i get arco when i can because it seems to be a few cents cheaper and i dont think quality matters for my car
SOhp101 11:38AM (4/22/2008)
I try and stick with Chevron, Shell, 76. Chevron mostly since I've noticed better performance overall with gas from them (most people will think I'm crazy but I can feel a difference in performance).
glitched 12:17PM (4/22/2008)
I use shell whenever possible as well. The sole reason for that is because my local shell's have big signs that say "100% gasoline. NO ETHANOL"
Andrew 1:28PM (4/22/2008)
I admit that I use Chevron almost exclusively. I'm sure the difference in quality is minimal, but it's only a couple cents more than the WalMart pump near our home. I've had a Chevron credit card for ten years and it still happens to be the most convenient stop along my commute. I encourage my wife to use it because the Chevron station near our home is very well lit and clean and in a good neighborhood. That peace of mind and the reward coupons make up for a few cents per gallon.
Andrew 1:28PM (4/22/2008)
I admit that I use Chevron almost exclusively. I'm sure the difference in quality is minimal, but it's only a couple cents more than the WalMart pump near our home. I've had a Chevron credit card for ten years and it still happens to be the most convenient stop along my commute. I encourage my wife to use it because the Chevron station near our home is very well lit and clean and in a good neighborhood. That peace of mind and the reward coupons make up for a few cents per gallon.
Luis 2:11PM (4/22/2008)
Chevron because it's closest to my house (and it seems to always be cheaper than the Mobil across the street). 76 everywhere else.
TwinTurbo3000GT 9:47PM (4/22/2008)
"as we've yet to meet anyone who can discern a difference between a tank of Chevron or Costco fuel from the driver's seat"
I'm that guy. I always put Shell in my car. My wife filled it with walmart gas once and i knew before i made it out of my apartment complex.
Zane 10:34AM (4/22/2008)
You guys are right on the money, well partially at least. For my daily (Accord) , I don't give a sh*t where I buy gas from as long as it's the cheapest in my area. However, my weekend toy (JCW MCS) gets only 93-oct Shell and BP. Call me dumb or whatever but I'm just too concerned about using premium fuel from RaceTrac, QT and the likes.
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kyle 10:37AM (4/22/2008)
I would think that the abundance and ready availability of brand name stations would cause people to use them more frequently. There isnt a discount station within 5 miles of where I live. Why am I going to drive 5 miles to save maybe a dollar or two? It negates the savings.
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Allan 10:53AM (4/22/2008)
Actually my situation may be the opposite. I live in an area with a LOT of generic/no name gas stations.
There are a few Sunocos and Mobils around... but none of the "premium" brands like Shell or BP. So most of what we get here is these "discount" stations.
Jei 11:53AM (4/22/2008)
Aren't Sunoco and Mobile big brand names on the same level as Chevron, Shell, and BP? Maybe you don't see many in your home region but they may be prevalent in others.
In the Columbus, OH area there is Speedway, GetGo, Kroger, 7-Eleven, Dairy Mart, Duke & Duchess, Meijer, Pilot, Swifty's, Costco, etc. gas stations. They are all considered generic, but their fuel is priced similarly to the big brands. All stations in this region get the same fuel from the closest refinery. And any differences are in the additives that big brands develop for their share of the fuel they sell. The wife and I both drive vehicles that require premium fuel and I make sure she doesn't get anything less.
Allan 12:16PM (4/22/2008)
They're big names, yes. But to my understanding, they're not of the "top tier" group of brands that have higher standards, hence it "should" be better gas.
More info: http://www.toptiergas.com/
Chris 10:39AM (4/22/2008)
The bad thing, they probably vote too... the same way
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Cameron 10:55AM (4/22/2008)
Zing!
dave 10:42AM (4/22/2008)
I buy based on price, I would purchase top tier gas regardless of price if I could find it in my area... http://www.toptiergas.com/retailers.html
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studemax 10:47AM (4/22/2008)
Might have something to do with the oil company credit cards one carries in ones wallet.
Way of the Future 10:48AM (4/22/2008)
i agree with you, i believe the gas does make a difference, that's why I also agree on which car to use it for. MY RX-8 and 335i use top tier gas, and my other cars, still use top tier. I am definitely a brand whore!