ACAPMA has released its biennial research into consumer attitudes towards the petrol-convenience industry in Australia.
The research was undertaken by Survey Matters and surveyed a geographical representative cross-section of 1,000 Australian petrol-convenience consumers which was subsequently grouped according to ‘inner city”, “outer suburban”, and “regional/rural” consumers.
Fuel purchase attitudes and behaviours
Overall, the 2019 Monitor found that consumers are visiting the outlet more frequently and, as observed in the 2017 Monitor, most consumers appear loyal to one of a few service stations.
- 87 per cent say they purchase fuel from the same or one of a select few service stations.
- Loyalty to a single service station increased from 17 per cent in 2017 to 26 per cent in 2019.
Price and location continue to be the main reasons for retailer loyalty. While the 2017 Monitor of Fuel Consumer Attitudes found that the importance of price in the fuel purchase decision was diminishing, this fall has been reversed in 2019.
- 56 per cent say that price is the most important driver of where to purchase fuel (up from 48 per cent in 2017).
- One in two believe they are spending more on fuel that they were two years ago.
- 69 per cent believed the increase in weekly fuel expenditure is being driven by higher fuel prices.
ACAPMA CEO Mark McKenzie notes that the national average retail prices during the time of the 2019 survey reveals that these prices were actually lower than they were during the time of the 2017 survey, “posing the question of whether consumer price perceptions are impacted by factors other than the price they actually paid at the pump”.
The research also tracked how consumers shop for fuel with the 2019 results suggesting that supermarket fuel discount vouchers are losing traction.
- Only 24 per cent of consumers say they use fuel discount vouchers (down from 30 per cent in 2017 and 42 per cent in 2015).
Conversely, use of fuel price apps is increasing.
- 19 per cent say they use fuel price apps to find the best price (up from only eight per cent in 2017).
- This figure increases to 24 per cent for consumers under 30 years of age.
Convenience purchase behaviours
The 2019 Monitor suggests that there has been little change in the proportion of consumers who make convenience purchases at service stations when they buy fuel.
- 82 per cent say they generally only purchase fuel when they visit a service station.
- The proportion of consumers who use their fuel retailer for ‘convenience only’ shopping also remained constant at one in three.
Despite this, there appear to be ‘pockets’ of consumers who are increasingly using the convenience store at their local fuel retailer. These consumers are generally young and live in the inner city.
Compared to the national average of 18 per cent of all service station consumers, 33 per cent of consumers in the inner city also purchase convenience items with their fuel.
“This is an important finding as it suggests that time poor inner-city consumers are increasingly using service stations for top-up purchases while those in out suburban and regional rural areas are continuing to use their service stations in the traditional manner,” Mr McKenzie said.
Among consumers who do buy ‘more than fuel’ there is also a propensity to make more frequent, planned purchases.
- 80 per cent of convenience purchases are planned rather than impulse buys.
- Focus group participants suggest the reason is convenience as “it saves me a trip to a different store”.
More than just fuel?
With many fuel retailers investing in significant upgrades to facilities and convenience stores expanding the range of products on offer, the 2019 Monitor was expanded to investigate consumers attitudes towards these changes and to the role of fuel retailers in the convenience sector.
The results revealed that support for an expanded range of items has increased since 2017 – with the greatest change being to the proportion of consumers who would consider buying grocery products such as milk, bread and toiletries.
- 42 per cent of consumers said they would consider buying these groceries from their retailer (up from just 14 per cent in 2017).
Overall, the research highlights that while most consumers only make occasional convenience purchases, young, inner city consumers are increasingly using their fuel retailer for more regular convenience shopping. This group is also the most likely to see a role for an expanded convenience offer, with nearly six in ten supportive of service stations providing “more than fuel”.
Further information
A full copy of the 2019 Monitor of Fuel Consumer Attitudes can be downloaded at: www.acapmag.com.au/wp-content/uploads/2019/11/ACAPMA-2019-National-Monitor-of-Fuel-Consumer-Attitudes-V1.0.pdf.
Further inquiries about the 2019 Monitor, or the previous 2017 Monitor and 2015 Monitor can be made by contacting the ACAPMA Secretariat on 1300 160 270 or emailing communications@acapma.com.au
This is an edited version of a piece originally published by ACAPMA.
