VIVA PRESENTATION :

BRAND PREFERENCE OF RETAIL FUEL

CONSUMER IN MALAYSIA
MUHAMMAD AIZZAT BIN ABDUL RAHIM
2012153503
BM 240 MKT 672

CHAPTER 1 : INTRODUCTION

 BACKGROUND OF THE STUDY

Unbalance industry, globally
affected
Factors affecting global price:
Unstable political condition
Depleting resources
Exchange rates
Malaysian Government pulled
out subsidy for fuel
Consumers control their
spending more

 BACKGROUND OF THE COMPANY

PETRONAS or Petroliam
Nasional Berhad was
established on 17th August
1974
Wholly owned by the
Malaysian Government
Ranked among Fortune Global Datuk Wan Zulkiflee
bin Wan Ariffin
th
President & CEO of
500s ; 75 in the world
PETRONAS Group
PETRONAS Group consist of :
103 wholly owned subsidiaries
19 partly owned
57 associated companies

 BACKGROUND OF THE COMPANY

Divided into 2
parts of main
business which
are :
Upstream
business
Downstream
business

 PETRONAS DAGANGAN BERHAD (PDB)

PETRONAS Dagangan Berhad (PDB), the
domestic marketing arm for PETRONAS.
Incorporated on 5th of August 1984
Listed on Main Board of Bursa Malaysia on
21th August 1993
Core business of PDB :

 PETRONAS DAGANGAN BERHAD (PDB)

Products of PDB :

 PROBLEM STATEMENT
PETRONAS is one of the best oil producer
in the world.
Holds the second largest market share,
standing at 30 percent behind Shell.
PETRONAS wants to own the biggest
market share for retail fuel industry.
Faces the problem to acquire the hearts
and minds of local fuel consumer

 RESEARCH OBJECTIVES
In this study, there are 2 main objectives
and they are :
to identify factors that contributes to
customers preference in choosing fuel
brand in Malaysia
to identify the choice of fuel brand
between male and female consumers in
Malaysia

 RESEARCH QUESTIONS
What are the factors that customer
would consider in their brand
preference of choosing fuel?
Which fuel brand will each male and
female consumer choose?

CHAPTER 2 : LITERATURE
REVIEW

 LITERATURE REVIEW
KEYPOINTS

SUPPORTED BY

RETAIL FUEL

KPDNKK (2015) - 3182 fuel station

operating in Malaysia
Zulhilmi.A (2009) - Fuel station has
changed, incorporating the store
with fast food chains,
complementary business, banking
machines and postal service
counters.

DISTANCE

V. Padmanabhan (2006) - Distance

is one of the key factor in retail
competition.
F. Azimont, L. Araujo (2010) Consumers tend to choose a brand
of fuel which is near to them such
as their workplace and their house
since it is convenience to them.

 LITERATURE REVIEW
KEYPOINTS

SUPPORTED BY

SERVICE PROVIDED

F. Azimont, L. Araujo (2010) Stations which can provide good

service from having a great
attendant team to providing
convenience store, it can lead to
consumer preference to a fuel
brand.

FACILITIES PROVIDED

M. Augustus (2013) - Consumer

preference affected when the petrol
station provide exterior facility and
also interior facility.
M. Juliet (2011) -Facilities provided
by petrol stations that offers a
convenience store and also rooms
for parking spaces categorised as
one of the factors which leads to
consumer preference to a particular

 LITERATURE REVIEW
KEYPOINTS

SUPPORTED BY

INFLUENCE BY
ADVERTISEMENT

H. Usman (2012) - Companies uses

advertisement to connect with their
customers, where they can deliver
messages while influencing new
customers and retaining their
customers.

EXPERIENCE

Verde Group (2007) - Great

experience at the fuel station can
impact consumers, in a way that
they have a good impression about
a brand.

 LITERATURE REVIEW
KEYPOINTS

SUPPORTED BY

QUALITY OF FUEL

M. I. Arbab (2013) - Fuel that has

quality can be related to better
combustion, protects and cleans
the engine and also improves the
handling and the drivability of the
car.

PERFORMANCE OF FUEL

T. R. Sharyn (2001) - Performance of

product that was experienced by
consumer can lead to the
preference of brand and also
consumers can be loyal to that
specific brand.

 LITERATURE REVIEW
KEYPOINTS

SUPPORTED BY

EXTRA SAVINGS

T. H. Ahmed (2011) - Consumers

would want to choose the brand
that can give them more mileage to
their car

BEHAVIOUR

T. Sigal (2012) - Male consumers

are loyal to a brand, even if the
price may be a burden to them,
they will still have their
commitment to a brand.
(T. Sigal, 2012) - Female consumer,
their brand commitment can be
shift to other brands if they would
see a better offer and it satisfies
them to accept the offer.

 LITERATURE REVIEW
KEYPOINTS

SUPPORTED BY

EXPERIENCE

Verde Group (2007) - Male tends to

walk away or to go to another
brand if there is no availability of
that specific brand and female
tends to switch to other brand if
there is no assistance for them to
reach in order to get the specific
brand.

RATIONAL NEEDS

H, Usman (2013) - Successful

brands deliver benefits to satisfy
consumer needs. These needs
include rational needs (such as
features, packages or the price of a
brand) and emotional needs (such
as prestige, distinctiveness, style or
the social reassurance of a brand).

 LITERATURE REVIEW
KEYPOINTS

SUPPORTED BY

ATTRACTIVENESS

Bikash et al (2010) Attractive

colours and the comfort of the
brand is one of the factors for
preference among gender.

CHAPTER 3 : METHODOLOGY

 RESEARCH DESIGN
QUANTITATIVE RESEARCH
TARGET POPULATION

-100 Respondents in 3 location

-Setapak, Gombak, Wangsa Maju
SAMPLING TECHNIQUE
-Simple Random Sampling

 DATA COLLECTION METHOD

PRIMARY DATA
-Questionnaire
-Personal interview
SECONDARY DATA
-Internal data : Company website
-External data : Journal, internet &
textbook

CHAPTER 4 : FINDINGS

 DEMOGRAPHIC PROFILE
DEMOGRAPHIC PROFILE

RESPONDENTS
(PERCENT)

GENDER

Male

Female

43
(45.3)
52
(54.7)

AGE

20-25

26-30

31-35

36-40

Above 40

54
(56.8)
10
(10.5)
11
(11.6)
4
(4.2)
16
(16.8)

STATUS

Single

Married

64
(67.4)
31
(32.6)

 DEMOGRAPHIC PROFILE
DEMOGRAPHIC PROFILE

RESPONDENTS
(PERCENT)

EDUCATION LEVEL

9
(9.5)
19
(20.0)
51
(53.7)
9
(9.5)
7
(7.4)

School level

Diploma

Degree

Post Graduate

Other

 DEMOGRAPHIC PROFILE
DEMOGRAPHIC PROFILE

RESPONDENTS
(PERCENT)

OCCUPATION

40
(42.1)
17
(17.9)
20
(21.1)
12
(12.6)
5
(5.3)
1
(1.1)

Student

Service Industry

Professional

Business

Not working

Other

 DEMOGRAPHIC PROFILE
DEMOGRAPHIC PROFILE

RESPONDENTS
(PERCENT)

MONTHLY INCOME

48
(50.5)
13
(13.7)
16
(16.8)
1
(1.1)
17
(17.9)

Less than RM 2 000

RM 2 001 RM 3
000

RM 3 001 RM 4
000

RM 4 001 RM 5
000

More than RM 5 001

TOTAL

95
(100)

 RESEARCH QUESTION 1 : WHAT ARE THE FACTORS THAT CUSTOMER

WOULD CONSIDER IN THEIR BRAND PREFERENCE OF CHOOSING FUEL?

SPECIAL PREFERENCE VS BRAND OF FUEL

Special preference of brand of fuel
Quality

Performance

Extra distance

Savings

Premium
Total

Petronas

Shell

Petron

BHP

Total

21

9.5%

8.4%

2.1%

2.1%

22.1%

10

5.3%

4.2%

1.1%

0.0%

10.5%

20

9.5%

4.2%

5.3%

2.1%

21.1%

14

16

38

14.7%

16.8%

4.2%

4.2%

40.0%

3.2%

1.1%

1.1%

1.1%

6.3%

40

33

13

95

42.1%

34.7%

13.7%

9.5%

100.0%

Petronas can be seen as the most

preferred brand
Most respondents believes in Shell for
Savings

RESEARCH QUESTION 1 : WHAT ARE THE FACTORS

THAT CUSTOMER WOULD CONSIDER IN THEIR BRAND
PREFERENCE OF CHOOSING FUEL?
WEEKLY EXPENSES OF FUEL
Weekly

RM

RM

RM

RM

More than

expenses of fuel

100-150

160-200

210-250

260-300

RM 300

1-5 times per

27

22

10

68

28.4%

23.2%

10.5%

2.1%

7.4%

71.6%

24

2.1%

4.2%

6.3%

4.2%

8.4%

25.3%

0.0%

1.1%

1.1%

1.1%

0.0%

3.2%

29

27

17

15

95

30.5%

28.4%

17.9%

7.4%

15.8%

100.0%

week

6-10 times per

week

11-15 times per

week

Total

Consumer spends around RM 100

RM 200 in a week

Total

 RESEARCH QUESTION 1 : WHAT ARE THE FACTORS THAT CUSTOMER

WOULD CONSIDER IN THEIR BRAND PREFERENCE OF CHOOSING FUEL?

INFORMATION ABOUT PROMOTIONAL ACTIVITIES

Elements

Frequency

Percent

Advertisements

50

52.6%

Friends & Relatives

27

28.4%

Recommendation by vehicle manufacturers

6.3%

Self

12

12.6%

Total

95

100%

Advertisements : 52.6%
Recommendation by vehicle
manufacturers : 6.3%

 RESEARCH QUESTION 1 : WHAT ARE THE FACTORS THAT CUSTOMER

WOULD CONSIDER IN THEIR BRAND PREFERENCE OF CHOOSING FUEL?

DESCRIPTIVE STATISTICS
Details

Mean

Rank

1.99

II

1.94

2.25

2.26

IV

I will choose fuel station that will provide good Credit facilities for my
transaction.

2.40

VI

I will choose fuel station that will provide me other facilities ie,
convenience store, ATM and rest spaces

2.02

III

I will choose any fuel brand which has the closest distance to my house.
I will choose any brand that will provide me with good service.

I will choose fuel stations regarding their brand which provides basic
facilities of air, water, parking facilities and surau.

I will always choose to go to fuel station that I prefer, regarding the

distance, facilities and also service provided.

Were ranked accordingly through their mean score

 RESEARCH QUESTION 2 : WHICH FUEL BRAND WILL

EACH MALE AND FEMALE CONSUMER CHOOSE?
FUEL BRAND PREFERENCE BY GENDER
Gender

Male

Female

Total

Brand of fuel

Total

Petronas

Shell

Petron

BHP

15

16

43

15.8%

16.8%

6.3%

6.3%

45.3%

25

17

52

26.3%

17.9%

7.4%

3.2%

54.7%

40

33

13

95

42.1%

34.7%

13.7%

9.5%

100.0%

Male prefers PETRONAS and Shell

Female prefers PETRONAS

 RESEARCH QUESTION 2 : WHICH FUEL BRAND WILL

EACH MALE AND FEMALE CONSUMER CHOOSE?
LOYALTY TO BRAND OF FUEL ACCORDING TO
GENDER
Gender
Consumer tends to be loyal to a brand of fuel

Male

Female

Total

Total

Disagree

Neutral

Agree

Strongly agree

18

16

43

0.0%

9.5%

18.9%

16.8%

45.3%

18

20

11

52

3.2%

18.9%

21.1%

11.6%

54.7%

27

38

27

95

3.2%

28.4%

40.0%

28.4%

100.0%

Male shows highest loyalty

compared to women : 35.7% vs
32.7%

 RESEARCH QUESTION 2 : WHICH FUEL BRAND WILL

EACH MALE AND FEMALE CONSUMER CHOOSE?
BRAND SWITCHING TENDENCY BY GENDER
Gender

Consumer tends to switch to different brands of fuel according to offers that satisfy

Total

them
Strongly

Disagree

Neutral

Agree

Strongly agree

14

15

43

1.1%

4.2%

14.7%

15.8%

9.5%

45.3%

16

21

13

52

0.0%

2.1%

16.8%

22.1%

13.7%

54.7%

30

36

22

95

1.1%

6.3%

31.6%

37.9%

23.2%

100.0%

disagree
Male

Female

Total

Female have higher tendency to switch

brands

 RESEARCH QUESTION 2 : WHICH FUEL BRAND WILL

EACH MALE AND FEMALE CONSUMER CHOOSE?
BENEFIT OF CLEANER ENGINE BY GENDER
Gender

Consumer will choose fuel brand that will give them the benefit of cleaner engine

Strongly

Disagree

Neutral

Agree

disagree

Male

Female

Total

Total

Strongly
agree

17

17

43

0.0%

2.1%

7.4%

17.9%

17.9%

45.3%

15

18

15

52

1.1%

3.2%

15.8%

18.9%

15.8%

54.7%

22

35

32

95

1.1%

5.3%

23.2%

36.8%

33.7%

100.0%

Male respondents agrees to the

statement

 RESEARCH QUESTION 2 : WHICH FUEL BRAND WILL

EACH MALE AND FEMALE CONSUMER CHOOSE?
EXTRA SAVINGS BY GENDER
Gender

Consumer will choose fuel brand that will give them extra saving
Strongly

Disagree

Neutral

Agree

disagree

Male

Female

Total

Total

Strongly
agree

17

20

43

0.0%

0.0%

6.3%

17.9%

21.9%

45.3%

10

17

23

52

1.1%

1.1%

10.5%

17.9%

24.2%

54.7%

16

34

43

95

1.1%

1.1%

16.8%

35.8%

45.3%

100.0%

Both agrees to choose fuel brand

that can provide extra savings

 RESEARCH QUESTION 2 : WHICH FUEL BRAND WILL

EACH MALE AND FEMALE CONSUMER CHOOSE?
EXPERIENCES AFFECT CHOICE OF BRAND BY
GENDER
Gender
Consumer will be affected in choosing a particular fuel brand if they had bad

Total

experiences at the fuel station

Strongly

Disagree

Neutral

Agree

disagree
Male

Female

Total

Strongly
agree

14

19

43

1.1%

2.1%

14.7%

20.0%

7.4%

45.3%

19

19

11

52

0.0%

3.2%

20.0%

20.0%

11.6%

54.7%

33

38

18

95

1.1%

5.3%

34.7%

40.0%

18.9%

100.0%

Female have higher percentage to be

affected by bad experience

 RESEARCH QUESTION 2 : WHICH FUEL BRAND WILL

EACH MALE AND FEMALE CONSUMER CHOOSE?
ATTRACTIVE OFFERS OF CONVENIENCE STORE AT
FUEL
STATION
Gender
Attractive offers in convenience shop at fuel station will affect consumers in

Total

choosing a preferred brand of fuel

Strongly

Disagree

Neutral

Agree

disagree
Male

Female

Total

Strongly
agree

12

17

11

43

1.1%

2.1%

12.6%

17.9%

11.6%

45.3%

20

14

15

52

2.1%

1.1%

21.1%

14.7%

15.8%

54.7%

32

31

26

95

3.2%

3.2%

33.7%

32.6%

27.4%

100.0%

Both female and male agrees that

attractive offers in convenience store
will affect their preference

CHAPTER 5 : CONCLUSION &

RECOMMENDATION

 GAP ANALYSIS
Research Objective 1: To identify factors that contributes
to customers preference in choosing fuel brand
LITERATURE
REVIEW

RESULTS

GAP

According to F.
Azimont & L.
Araujo (2010),
preference of a
brand of fuel will
be depending to
the distance of the
fuel station from
consumers
workspaces or near
their house.

Based on the
questionnaire
distributed and the
information
received, the
results shown that
95 respondents
agree to the
statement of I will
choose any fuel
brand which has
the closest
distance to my
house, with the
mean of
1.99,ranked the

Yes

According to F.
Azimont & L. Araujo
(2010), consumers
who are loyal to a
specific brand of

 GAP ANALYSIS
LITERATURE
REVIEW

RESULTS

GAP

As what said by F.
Azimont & L.
Araujo, fuel station
which can provide
good service to
customers such as
providing good
services by their
attendant team
can lead to
consumer
preference to a fuel
brand.

Based on the
No
questionnaire
distributed to 95
respondents, it was
found that most of
the consumer
chose to agree with
the statement I
will choose any
brand that will
provide me with
good service,
which were ranked
as the highest
mean, standing at
1.94.

 GAP ANALYSIS
LITERATURE
REVIEW

RESULTS

GAP

From M. Augustus
(2013), he said
that consumer
preference will be
affected if the fuel
station provides
exterior facility and
also interior
facility, which can
be more focused
on parking spaces
and also
convenience store
(M. Juliet, 2011).

Based on the
No
questionnaire
distributed to 95
respondents, it was
found that the
respondents
agreed to the
statement of I will
choose fuel station
that will provide
me other facilities
ie, convenience
store, ATM and rest
spaces, with the
score of 2.02, the
third highest mean
among 6 given
statement in the
questionnaire.

 GAP ANALYSIS
LITERATURE
REVIEW

RESULTS

GAP

According to F.
Azimont and l.
Araujo (2010),
consumer can be
loyal to a specific
brand of fuel if
they can provide
good experience
and also deliver
performance to
consumer. M.M.
Marisa (2001) also
stated that if a
brand can deliver
performance,
consumer will have
a bond of trust with
the brand.

Proven from this

research,
respondents
agreed to
PETRONAS as a
brand that has
quality, delivers
the performance,
go the extra
distance and it
offers the highest
specification of
premium product.
However some of
the respondents
choose Shell as
their brand
preference due to
savings that they

No

 GAP ANALYSIS
Research Objective 2: To identify the choice of fuel
brand between male and female consumers
LITERATURE
REVIEW

RESULTS

GAP

According to T.Sigal
(2012), male
consumers are
loyal to a brand,
even if the price
may be a burden to
them. While for
female consumers,
their brand
commitment can
be shift if they see
a better offer that
can satisfy them
better.

Based on survey
No
conducted, a
strong percentage
of 35.7% can be
seen responded by
male respondents,
which they are
agreeing that male
consumer tends to
be loyal, while only
the percentage of
32.7% which
represents female
respondents whom
chose to agree that
female consumer
tends to be loyal to

 GAP ANALYSIS
LITERATURE
REVIEW

RESULTS

GAP

According to Verde
Group (2007),
experiences
towards previous
brands can result
to consumer being
loyal to a brand.
Male tends to walk
away to another
brand if they had
bad experience
before and female
tends to switch to
another brand if
there is no
assistance for them
to reach the
specific brand.

From the survey

conducted, it can
be seen that the
result shows
female
respondents with
the percentage of
31.5% agreed to
the statement of
Consumer will be
affected in
choosing a
particular fuel
brand if they had
bad experiences at
the fuel station,
which is higher
than male
respondents with

No

 GAP ANALYSIS
LITERATURE
REVIEW

RESULTS

GAP

According to C,
Pisey (2011), one
of the factors
which can make
male consumer be
loyal to a brand is
by delivering the
perceived quality
when it is being
used.

From the survey

No
conducted, male
respondents with
the percentage of
35.8% agrees to
the statement of
Consumer will
choose fuel brand
that will give them
the benefit of a
cleaner engine,
which seen that
male consumer will
be loyal to a brand
that can give them
the benefit of a
cleaner engine,
which is what is
expected from the

 CONCLUSION
Research objective 1 :
The service provided at the fuel station ; good
forecourt team and friendly cashier
The distance of the fuel station that can be reached
easily by the consumers
Fuel station that provides facilities such as
convenience store, ATM machine and rest spaces.
Previous experiences of consumer at the fuel station
which will decide their preference
Quality of fuel offered by different brands of fuel in the
market
Performance of fuel that is delivered to consumer
Savings or extra mileage when using a specific brand

 CONCLUSION
Research objective 2 :
Male respondents choose PETRONAS and
Shell as their preferred brand of choice
Female respondents prefers Shell
Male consumers are loyal to a brand
Female consumers tends to switch to
what benefits them more
Bad experiences affects female brand of
choice

 Recommendation
Invest more on real estate
- Location of fuel station
- The right forecasts

Loyalty programs for

consumer
-Retain and attract
-Nationwide

THE END
THANK YOU