Abstract

Consumers look for products to solve their immediate problems or perhaps to be a habitual buyer of the same product and so on. It becomes quite essential for organizations to understand a consumer behaviour and attitude towards a particular product or service. The insights gained through these kinds of research help organizations customize or augment their offering as per consumer's needs. In Pakistan, Diesel engine vehicles play an important role in the transportation fraternity of the Country. Heavy Duty Vehicles travel through different climate, road, temperatures, dusty areas and weather conditions. In order to save an engine from these external factors, Engine Oils play a key role. This study explores the consumer attitude towards buying a particular lubricant. A sample of 120 Diesel Engine Vehicles was conducted through a questionnaire which revolves around a few basic attributes that add to consumer purchase decision. PSO being the largest Oil Marketing Company having a huge retail network is still unable to grab a good market share during the past few years. This study carries significance in finding out the reasons behind PSO's low market share and identifies key areas that drive a consumer towards making a lubricant purchase.

Highlights

  • Background of the StudyThe overall lubricants sector in Pakistan grew by 5.3% in 2007-08 as compared to 200607 (Pak Oil Report, 2007-08)

  • Shell Pakistan Limited was the leading brand with 28.7% of market share followed by Pakistan State Oil and Chevron Pakistan Limited with 16.8% and 16.2% market share respectively

  • The off take for Heavy Duty Engine Oil (HDEO) and Industrial Oil are Salman Zakir is a Corporate Communications Executive at Pak-Arab Refinery Ltd. (PARCO) Dr Fouzia Naeem Khan is Dean of Social of and Media Sciences at SZABIST, Karachi, fouzia@szabist.edu.pk Journal of Independent Studies and Research – MSSE

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Summary

Introduction

The overall lubricants sector in Pakistan grew by 5.3% in 2007-08 as compared to 200607 (Pak Oil Report, 2007-08). Shell Pakistan Limited was the leading brand with 28.7% of market share followed by Pakistan State Oil and Chevron Pakistan Limited with 16.8% and 16.2% market share respectively. To gain market leadership, strong brand positioning in targeted market segment (Diesel Engine Oil, Passenger Car, and Motorist Oil) is the key success factor (Pak oil report, 2007-08). The sales for lubricants registered a decline of 10.28% at 184,122 M Tons in FY08-09 as against 206,452 M Tons in the previous corresponding period. Heavy Duty Engine Oil (HDEO) and Industrial Oil are the top two selling lubricant varieties which jointly contribute for around 65% of the total lubricant sales. The off take for HDEO and Industrial Oil are Journal of Independent Studies and Research – MSSE

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