You are on page 1of 26

A STUDY OF INDEPENDENT GASOLINE

STATION WITH CONVENIENCE STORE


OPERATORS PERCEPTIONS OF
ACTIONS TAKEN TO MEET CUSTOMER
DEMANDS
Dissertation Proposal Defense
Raafat Zaiter
Argosy University-Schaumburg
Sharon McNeely, Ph.D., Chair
Byron R. Coon, Ph.D., Committee Member
Byron R. Coon, Ph.D., Program Chair

The Problem
Independent Gasoline Stations with Convenience
Stores Operators have been dealing with internal
and external challenges including consumers
changing demands that are impacting the
sustainability of their operations.
the history of gasoline stations has been marked
by trends. (Highbeam Business, 2013)

Changes & Challenges


Consumers preferences for modern stores and
enhanced services (Sharkey, Dean & Nalty, 2012)
Proliferation of large retailers and chain operators
selling gasoline (Highbeam Business, 2013)
Consumer changing expectations (Experimental
Economics Center, 2006; Lakewest Group, 2007).
Fierce competition (Highbeam Business, 2013),

Changes & Challenges


Increased Environmental regulations
Volatile and high gasoline prices (Hanly, Dargay &
Goodwin, 2012),
High credit card usage and high fees (NACS, 2013)
High cost of meeting credit card companies security
requirements
Decreasing profit margin from gasoline and tobacco
sales (NACS, 2012)

Purpose of the Study


To study the differences between small and
large independent gasoline station with
convenience store operators perceptions on
the actions they take to assess and meet
customers changing demands.

Definitions
Price Elasticity

Theoretical Background
Change Theory (Lippitt, Watson, and
Westley, 1958)
Extension of Lewins three-step Change Theory
Seven steps: Diagnosis, Capacity assessment,
Resources and motivation assessment, action
plans and strategies, Selection of change agents,
Maintenance of change, and closing the project.

Change Theory
How and why an initiative works (Weiss, 1995)
Three Core Elements: Populations, Strategies,
Outcomes (INSP, 2005)
Four Criteria: Plausible, doable, testable,
meaningful (Connell and Klem, 2000)

Research Related to the Theoretical


Background
Kurt Lewins change theory (Lewin, 1951).
Lippitts Phases of Change Theory (Lippitt, Watson
and Westley, 1958)
Social Cognitive Theory (Bandura, 1977)
Transtheoretical therapy (Prochaska and
DiClemente, 1982)

Research Related to the Theoretical


Background - Continued

Implementing Change (Jick, 1991)


Why Transformation Efforts Fail (Kotter, 1995)
Learning in Action (Garvin, 2000)
Integrating five theories of organization change
using the transform-acknowledge-define-alignperform mode (Meeks, 2009).

Significance of this study


Understanding the External and Internal Factors
that impact the gasoline station with
convenience store business.
Identifying the differences between small and
large independent operators perceptions on the
actions they take to assess and sustain their
operations.
Providing insights into the actions taken by
independent GSWCS operators to sustain their
operations.

Significance of this study


Creating a guiding map based on the Theory of
Change (ToC) for independent operators to use
in initiating and implementing a change.
Benefiting Fuel Suppliers (Jobbers) by learning
the importance of taken actions by their dealers
to improve their operations.

Literature Review
The gasoline stations with convenience stores
industry is changing.
Independent GSWCS operators have been facing
challenges.
The phenomenon: Independent GSWCS
operators are facing external and internal factors
that are impacting their business.
Independent GSWCS Operators are pulled and
pushed to make changes to sustain their
operations.

Methodology: Research Design


Cross-sectional mixed method survey done at one
specific point in time.
Independent variables
Size of operation
Small
Large
Dependent variables
Perceptions of Needs and Satisfaction

Conceptual Framework
Figure3. GasolineStation Customer demands
Theory of Change Conceptual Framework

Meeting Customers Demands

Perceived Value
by Customers
Feedback

Competitive
Prices Set

Check
Competitors
Prices

Recalculate
cost and profit
margin

Perceived Good
Experience by
Customers Feedback

Improved
Sales and
Profit

Better Product
Mix
Offered

Communicate
with Suppliers

Updated Rules
& Technology

Customers
Rewarded

Update
Equipment,
Software &
Rules

Implement
Promotions &
Loyalty
Programs

Explore New
Retail Format
& New Profit
Centers

Plan Specific
Actions

Perform SWOT Analysis


(Environmental Scanning)
Use the Balanced Scorecard
Tool

External Factors Pulling


for Change

Better
Ambiance

Modernized
Place

Comply with
Governmental &
Environmental
Laws

Hire
Qualified
Employees

Assess Stakeholders Roles


(See Figure 2)

Clarify Goals

Satisfied
Customers

Increased
Number of
Customers

Reimage or
Expand the Place
Using Better
Technology

Secure Human and


Economic Resources

Determine Measurable
Indicators of Success

Employees
Rewarded for
Exceptional Service

Employees
Acquire Better
Work Skills

Train &
Motivate
Employees

Bank Loan or
Reserved Capital

Assess Leadership
Style & Accountability

Independent Gas Station Operator assesses if


a change is warranted to meet customers
demands.

Perform Cost/Benefit
Analysis

Perform Analytics

Gas Station Business


Consumer Demands

Source: Author of dissertation. All Rights Reserved 2013.

Internal Factors Pushing


for Change

Quantitative Research Questions


Are there differences between large and small independent
gasoline station with convenience store operators
perceptions on the actions they take to assess customers
changing demands?
Are there differences between large and small independent
gasoline station with convenience store operators
perceptions on the actions they take to meet customers
changing demands?
Are there differences between large and small independent
gasoline station with convenience store operators
perceptions on the measures they use to test the success of
the outcomes?

Qualitative Research Questions


What actions do independent gasoline station with
convenience store operators perceive to be
effective to assess and meet customers changing
demands?
What relevant indicators independent gasoline
station with convenience store operators deem
necessary to measure the success of the outcomes
of their actions?

Methodology: Population and Subjects


Population: Independent GSWCS operators in the
Midwest region of the U.S.
Approximately 250 small independent GSWCS
operators and 250 large independent GSWCS
operators will be targeted. (Small defined as 3 or less and
Large as 4 or more stores ).

Anticipation of a minimum of 30 small and 30


large GSWCS independent operators would
complete their surveys.
Actions taken by independent GSWCS operators
will be generalized to the population.

Methodology: Instrumentation
Survey based on a 2013 Retail Industry Outlook
Survey (2014) by kpmg.com (2013)
Online self-reporting survey questionnaire
Both quantitative and qualitative questions in one
survey
Survey done in one time
Mixed methods survey using Likert type & openended response questions

Methodology: Procedures

Secure approval from IRB


Contact Jobbers to initiate contact with their
dealers (participants)
Ask Fuel Suppliers (Jobbers) to send requests to
their dealers (operators) in the Midwest region of
the U.S. to complete the online survey.
Obtain consent from potential participants
Possible participants follow links to informed
consent. Give consent and then do survey.

Methodology: Data Analysis


Quantitative
Descriptive and inferential statistics
analysis will be used to determine
which statistical testing to use.
Use two-tailed, with alpha at .05, 95%
confidence intervals.

Qualitative
Axial coding
Thematic analysis

Assumptions and Limitations


1. Operators are willing to share their experiences.
2. Operators have taken some actions to meet their
customers demands and sustain their operations.
3. Limited to the independent GSWCS operators
perceptions of actions/changes in the Midwest of the
U.S.
4. Included only: Gas Stations with Convenience Stores
5. Not included: Corporate based operators, franchisors,
very large operators (100 or more locations), and big
box retailers that sell gasoline.

Questions?
Thank you for your time and attention
Please ask any questions

References

2013 Retail Industry Outlook Survey (2014). KPMG International Cooperative ("KPMG
International"). http://www.kpmg.com/us/en/topics/2013-outlook-surveys/pages/2013-retail-industryoutlook-survey.aspx
Bandura, A. (1977). Self-efficacy:Toward a unifyingtheory of behavioral change.
PsychologicalReview, 84, 191-215.
Burnes, B. (2007). Kurt Lewin and the Harwood studies: The foundations of OD. Journal of Applied
Behavioral Science, 43, 213-231.
Connell, J., & Klem, A. (2000). You can get there from here: Using a theory of change approach to
plan urban education reform. Journal of Educational and Psychological Consultation, 11(1), 93-120.
Creswell, J. W. (2012). Research Design, 3rd Edition. SAGE Publications, Inc, 2012-07-17. VitalBook
file.
Experimental Economics Center (2006). Factors Affecting Demand. Extracted from:
http://www.econport.org/content/handbook/Demand/Factors.html.
Garvin, D. (2000) Learning in Action: A Guide to Putting the Learning Organization to Work, Harvard
Business School Press, Boston.
Hanly, M., Dargay, J., & Goodwin, P., (2012). Review of Income and Price Elasticities in the Demand
for Road Traffic. Department for Transport, London.

References

Highbeam Business (2013). Gasoline Service Station SIC 5541. Industry Report. Retrieved on October
2013 from: http://business.highbeam.com/industry-reports/retail/gasoline-service-stations.
Insp (2005). International Network on Strategic Philanthropy. Theory of Change Tool Manual.
Retrieved from: http://www.dochas.ie/Shared/Files/4/Theory_of_Change_Tool_Manual.pdf
Jick, T. (1991) Implementing Change, Note 9-191-114, Harvard Business School Press, Boston.
Kotter, J. P. (1995) Why Transformation Efforts Fail, Harvard Business Review, 74(2) (Reprint No.
95204).
Lakewest Group (2007). 8th Annual POS Benchmarking Survey: Exceeding Your Customers
Expectations. Retrieved from: http://www.nrf.com/modules.php?
name=News&op=viewlive&sp_id=630&parent_id=948&peer_rev=0
Lewin K. (1951) Field Theory in Social Science. Tavistock Publications, London.
Lippitt, R., Watson, J. and Westley, B. (1958). The Dynamics of Planned Change. New York: Harcourt,
Brace and World, 1958.

References

Meeks, J. (2009). Integrating five theories of organization change using the transform-acknowledgedefine-align-perform model. (Order No. 3481013, Saybrook Graduate School and Research Center).
ProQuest Dissertations and Theses, , 209. Retrieved from
http://search.proquest.com/docview/904595007?accountid=34899. (904595007).
National Association of Convenience Store (NACS), (2012). 1600 Duke Street, Alexandria, Va 22314.
Retrieved from: http://www.nacsonline.com/News/Press_Releases/2013/Pages/PR041013.aspx
National Association of Convenience Store (NACS), (2013). 1600 Duke Street, Alexandria, Va 22314.
Retrieved from:
http://www.nacsonline.com/Research/FactSheets/IndustryIssues/Pages/CreditCardFeesaGrowingChall
engeforConvenienceStores.aspx.
Prochaska JO, DiClemente CC. (1982). Transtheoretical therapy: Toward a more integrative model of
change. Psychotherapy: Theory, Research and Practice. 1982;19(3):276-288.
Sharkey, J. R., Dean, W. R., & Nalty, C. (2012). Convenience Stores and the Marketing of Foods and
Beverages Through Product Assortment. American Journal of Preventive Medicine. Sep2012
Supplement 2, Vol. 43 Issue 3, pS109-S115. 0p.
Weiss, C. H. (1995). Nothing as practical as good theory: Exploring theory-based evaluation for
comprehensive community initiatives for children and families. In J. P. Connell, A. C. Kubisch, L. B.
Schorr, & C. H. Weiss (Eds.), New approaches to evaluating community initiatives: Concepts,
methods, and contexts (pp. 6592). Washington, DC: The Aspen Institute.