Customer buying behavior at selected petroleum shops in Cape Town

Abstract

The dynamic nature of modern organisations, characterised by hyper turbulence, necessitates that organisations remain receptive to the plethora of internal and external forces driving changes in strategy. One such organisation is that of Engen Petroleum Limited which operates in an everchanging, highly competitive environment. In order to remain the market leader, Engen needs to revisit its strategy to contend with market forces, bearing in mind that globalisation, as well as international ownership of competitor companies, play a role. In order to maintain a competitive advantage, the role of brands in the context of convenience is important, as brand recognition makes decision-making simpler for consumers who are in a rush. It is hence deemed expedient for forecourt retailers to understand customer satisfaction drivers, such as quality, service and convenience (Molefi, 2007). The current research focuses on the Engen Western Cape Quick Shop network, and in particular, investigates the possible reasons, namely growth rates, product offering, location, and customer service, for performance compared to the national average. A questionnaire/survey was conducted to determine the demographic characteristics of customers as well as the factors that influence their propensity to utilise Engen Quick Shops. This research was intended to provide Engen Petroleum Limited with data and information to enable the Western Cape Convenience dealer network to not only grow at the national average, but also to position itself at the forefront of the Convenience Store market.