Factors influencing consumers’ choice of retail fuel service stations among selected oil marketing companies in Lusaka, Zambia.
Date
2025
Authors
Pangani, Abby
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
The downstream petroleum retail sector in Zambia has become fiercely competitive with the mushrooming of oil marketing companies (OMCs) all vying for the same customer base in a market where fuel products are homogeneous, and prices are uniformly regulated. The limited differentiation has led to heightened consumer switching behavior, causing market share declines for many OMCs, threatening their long-term viability. However, the factors influencing consumer choice of fuel service stations in the Zambian context remain insufficiently understood, limiting the ability of OMCs to develop effective competitive strategies. This research aimed to determine the factors influencing retail consumers' choice of fuel service stations in Lusaka, Zambia to enhance their competitive edge. The specific objectives were determining products and services considered important at retail fuel stations; establishing primary factors influencing consumers’ choice of fuel stations, and examining the degree of consumer loyalty to their preferred retail fuel station brand. The theoretical framework that underpinned this study was the Engel-KollatBlackwell (EBK) Model of the Buyer decision process, which provided an understanding of consumer behaviour. The study adopted a positivist philosophy and applied a quantitative approach, utilizing a cross-sectional descriptive research design. Primary data were collected from 440 motorists using a structured questionnaire, with the sample size determined by Yamane’s formula. The study was conducted in the central business district of Lusaka, offering a diverse mix of fuel station brands and corresponding respondents. Data was analyzed using descriptive and inferential statistics with the aid of the Statistical Package for Social Sciences (SPSS) and Microsoft Excel. The findings reveal that consumers prioritize service stations offering supplementary services beyond fuel, including vehicle maintenance, convenience stores, food outlets, ATMs, pharmacies, and other value-added amenities. Moreover, the most influential factors driving consumer choice include service quality, location, brand image, promotional programs, and non-fuel amenities. These findings stress the need for OMCs to continuously enhance service quality, strategically optimize station locations, improve branding efforts, revamp promotional strategies, and expand non-fuel amenities to sustain competitiveness. By adopting these recommendations, OMCs can improve customer retention, differentiate themselves in a hyper-competitive market, and build long-term brand loyalty.
KEYWORDS: fuel service stations, consumer choice, marketing mix, non-fuel amenities, Oil marketing companies
Description
Thesis of Master of Business Administration General.