Gas-Buying Behavior

Understanding how gas prices affect consumer behavior and driving habits can help convenience retailers execute their marketing strategies. But it’s also important to examine how consumers buy gas, which reveals some interesting variations.

With 66% of Americans commuting daily, it’s not surprising that about the same percentage (58%) purchase gas during one of the rush hours. But for the third straight year, midday fueling is the most popular time to fill up. But these time pressures vary by demographic. Those most likely to purchase fuel in the morning are consumers ages 35 to 49, so there may be an opportunity for convenience retailers to expand their breakfast foodservice marketing to focus on this segment of shoppers. Meanwhile, those age 65 and older are most likely to purchase gas mid-day, outside of rush hours. A promotional campaign around slowing down and enjoying a snack or meal inside the store might appeal to this demographic. And those in the Midwest are most often likely to purchase gas during the evening rush, which may present an opportunity for retailers to promote fill-in dinner items or even meal kits.

Shopping on Price

We know from previous surveys that the price per gallon is the top reason consumers choose where to purchase gasoline. However, with five straight years of sub-$3 gas, consumers are not as driven by price in 2020 (58%) as they were five years ago (71%).

Today, more consumers say the in-store offer determines where they purchase gas: 5% of all drivers cite the in-store offer as the primary reason they select a place to fuel up—and 10% of younger consumers (ages 18 to 34) choose where to fill up based on what they plan to purchase inside the store.

The quality of the in-store offer also is driving consumer preferences for certain stores or brands: Nearly two in three drivers (62%) say they prefer a certain c-store or chain, which is double the amount from eight years ago.

 

Changing Consumer Behavior

Retailers know that if they can get a customer to fill up at their store, they have a good chance of getting them inside the store to buy other merchandise. Because in-store sales make up around two-thirds of a store’s overall profits, it’s vital that customers buy something besides low-margin fuel. It could be the marketing at the pump, a clean fueling island and lot, welcoming design and signage—or your reputation. The good news is that it’s working: More and more, people filling up also are going inside the store. And for the first time in our surveys, most drivers who buy gas also are going inside (52% in 2020 vs. 35% in 2015). And, more than two in three drivers ages 18 to 34 come inside the store when they fill up their vehicles (68%).

What they’re doing inside the stores is largely the same as every survey since 2013, including purchasing drinks, snacks, and other grab-and-go items.

Ultimately, success for retailers is often determined by how they can attract customers to their lot to buy fuel and also get them inside the store to purchase other items. Or, increasingly, by developing a strong in-store offer that translates to a fuel purchase that may be less dependent upon only the gas price sign.

source: nacsmagazine.com