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A STUDY ON CONSUMER SATISFACTION TOWARDS SERVICE QUALITY OF

INDIAN OIL (With reference to Coimbatore city)

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INFOKARA RESEARCH ISSN NO: 1021-9056

A STUDY ON CONSUMER SATISFACTION TOWARDS

SERVICE QUALITY OF INDIAN OIL
(With reference to Coimbatore city)
Dr.A.ViniInfanta,
vinihenry92@gmail.com,
Assistant Professor, Department of Commerce with Professional Accounting,
Sri Ramakrishna College of Arts and Science, Coimbatore.
&
Yogesh Prabhu. V,
Yoloyogesh7@gmail.com,
UG Student, Department of Commerce with Professional Accounting,
Sri Ramakrishna College of Arts and Science, Coimbatore.

ABSTRACT

Indian Oil Petrol is India’s leading branded petrol boosted with new generation
multifunctional additives known as friction busters that prevent deposition in the combustion
chamber. Indian oil is custom designed to deliver higher mileage, more power, better pick-up,
faster acceleration, enhanced engine cleanliness and lower emissions. In this study i have tried
to assess the consumer awareness and usage pattern of Indian oil petrol.

Keywords: Indian Oil, consumer pattern, petroleum, fuel station.

INTRODUCTION

India’s flagship national oil company and downstream petroleum major Indian Oil
Corporation Limited (IOC) is the 18th largest petroleum company in the world. It is currently
India’s largest company by sales with a turn over of Rs.2,85,337 crore and a profit of Rs.2, 950
crore for the fiscal year 2008- 2009. It is also the highest ranked Indian company in the
prestigious Fortune ‘Global 500’ listing having moved up 11 places to the 105th position in
2009. Indian Oil and its subsidiaries account for approximately 48% petroleum products market
share, 34% national refining capacity and 71% downstream sector pipelines capacity in India.
With India’s energy needs projected to grow by 40% in the next five years, the future is indeed
full of promise for Indian Oil – a future the 31,700 strong Indian Oil team shall build as they
fuel the dreams of over a billion of their countrymen. Indian Oil’s products include Indane gas,
auto gas, natural gas, petrol / gasoline, diesel, jet fuel, lubricants and greases, marine fuels and
lubricants, kerosene, industrial fuels, bitumen, crude oil, and linear alkyl benzene besides
special products like benzene, mineral turpentine oil, paraffin wax, raw petroleum coke,
sulphur and toluene. Automotive petrol / gasoline is used in internal combustion spark ignition
engines. Gasoline is a complex mixture of relatively volatile hydrocarbons and is derived from

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fractional distillation of crude petroleum with a further treatment mainly in terms of

improvement of its octane rating. In view of the auto fuel policy issued by the Government of
India, more and more stringent specifications (equivalent to Euro II, Euro III & Euro IV) are
being made applicable for the gasoline’s being marketed in India. This has lead to a reduction
of the environmentally polluting factors in gasoline.

REVIEW OF LITERATURE

I. Kannan V conducted a study on the Consumer Perception for Branded Fuels with
Special Reference to Xtra premium Petrol of Indian Oil Corporation Limited (Volume
: 1 , Issue :1 , page :13) in that they said Respondents have ranked better mileage when
compared to price as the major factor that influences the purchase of xtra premium
petrol.
II. Anurag Dugar on 2013 conducted a study on Measuring Consumers’ Preferences and
Attitudes Towards Branded Petrol: An Initial Investigation of the Branded Petrol
Market (Volume: 1, Issue : 1 page : 04)in that they said it may be concluded that the
marketing strategies have made the consumers sit up and take notice of petrol brands
and also the strategies have been successful in the sense that consumers see value in
branded petrol. The consumer sperceive that they are price sensitive as far as petrol is
concerned, but actually they are not.
III. Keerthi Anand on 2017 conducted a study on Consumer Behaviour Towards Petroleum
Retail Outlets (page : 57) in that they said The consumers perceive that there is a
Relationship between maintenance and quality of the product. The funding to such
Infrastructural elements shall not be constrained by economics.

STATEMENT OF PROBLEM

Increase in population makes India one of the largest Market for fuel consumption. Indian Oil
Corporation is the market leader in this sector .Recently consumers also give importance to
various non fuel outlets. This article is about consumer preference towards Indian Oil and their
buying pattern. It also talks about consumer’s view on self service petrol station.

OBJECTIVES

 To study and analyse the Consumption pattern of motorists in Coimbatore city.

 To study the factors playing major role in the fuel Consumption.

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 To study the various expectations and perceptions of the consumers with respect to fuel
stations.
 To study the consumer’s view on self service petrol stations.

RESEARCH METHODOLOGY

Primary data is collected through well structured questionnaire and interview with
Students and corporate employees. Secondary data was collected from Library records, Books,
Newspaper, Journals, Magazines and Websites. Secondary Data gave a detailed view about the
Problem Statement. A sample is 95 responses have been selected and analyzed.

Sampling

 The method of Sampling used to collect data is Convenience Sampling

 Convenience is a type of non-probability sampling that involves the sample being drawn
from the part of population that is closed to hand.
 The reason for choosing this sampling is opinion of every consumer differs from each other
according to their needs and economic situation. In order to get information from various
Consumers and analyse their opinion about the impact of commerce on online shopping
method of Sampling is used.
Study area
The study is conducted among the students, private employees, government employees,
businessmen and professionals with in the city of Coimbatore.
HYPOTHESIS OF THE STUDY
 There is no significant relationship between monthly income and frequency of online
purchase.
 There is no significant relationship between educational qualification and frequency of
online purchase.
 There is no significant relationship between gender and frequency of online purchase.
 There is no significant relationship between residential area and frequency of online
purchase.
 There is no significant relationship between residential area and frequency of online
purchase.

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Tools used for data analysis:

 Percentage analyses
 Chi square test

LIMITATION OF THE STUDY

A sum of 95 respondents was identified from different educational institutions and

offices In Coimbatore City. Majority of respondents were students in the conducted survey and
it was hard to get a diverse opinion for the study.

ANALYSIS AND INTERPRETATION

SOCIO ECONOMIC PROFILE

S.No Variables Highly Responded Area No of Responses Percentage
1 Age 18-25 49 52%
2 Gender Female 56 59%
3 Marital Status Unmarried 62 65%
4 Educational Qualification Undergraduate 51 54%
5 Occupation Public /private sector 37 39%
6 Monthly Income 10000-20000 32 34%
7 Preferred Fuel Of Respondents Petrol 87 92%
8 Type Of Vehicle Owned By Two Wheeler Only 62 65%
Respondents
9 Brand Of Two Wheeler Used Honda 30 32%
By Respondents
10 Brand Of Four Wheeler Used Suzuki 37 39%
By Respondents
11 Respondents Fill Their Fuel Yes 74 78%
Only At Selected Fuel Station
12 Choice Of Fuel Outlet Of Indian Oil 76 80%
Respondents
13 On A Single Visit Money Spent 200-300 31 33%
On An Average Of The
Respondents

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14 Number Of Times Respondents 1-2 53 56%

Visit Fuel Station In A Week
15 The Reason Of Respondents Quality / Quantity 64 67%
That They Consider For
Choosing A Fuel Station
16 Respondents Who Think Self Yes 55 58%
Service Fuel Stations Are
Necessary
17 Respondents who Yes 85 89%
recommended their preferred
fuel station to others
From the Socio Economic Profile of 95 respondents, 52% of them fall under the age
category of 18-25.39% of them were public / private sector employees. 59% of them were
female. Among them 65% were unmarried. 54% of them were undergraduates. 34% of them
have a monthly income of10,000-20000. 92 percentages of them preferred petrol over others.
65% of them owned only two wheelers. 32% owned Honda as their two wheeler brand. 39%
of them owned Suzuki as their four wheeler brand. 78% of them fill their fuel only at selected
fuel stations. 80% of them preferred Indian Oil. 33% of them spent 200-300 on a single visit.
56% of them visit fuel station 1-2 times a week. 67% of them consider quality / quantity for
choosing a fuel station. 58% of them think self service fuel stations are necessary. 89% of them
recommended there preferred fuel station to others.

CHI – SQUARE ANALYSIS

Chi - Square analysis are conducted in order to find whether there is any relationship
between chosen variables. Seven factors namely Age, Income, Gender, Preferred Fuel, Brand
of four wheeler, Money Spent on a single visit and Times they visit fuel station in a week have
been selected in order to test whether there is any relationship between them. Chi – Square
analysis are conducted by using the Statistical tool SPSS and the results derived are given
below.

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1) relationship between income and Preferred Fuel

Case Processing Summary
Cases

Valid Missing Total

N Percent N Percent N Percent

income * preferred fuel 95 100.0% 0 0.0% 95 100.0%

income * preferred fuel Cross tabulation

preferred fuel Total

Auto gas Diesel Petrol

Count 0 1 27 28
10000-20000
Expected Count .3 2.1 25.6 28.0

Count 0 3 15 18
20000-30000
Expected Count .2 1.3 16.5 18.0

Count 0 0 8 8
income 30000-40000
Expected Count .1 .6 7.3 8.0

Count 0 1 8 9
Above 40000
Expected Count .1 .7 8.2 9.0

Count 1 2 29 32
Less than 10000
Expected Count .3 2.4 29.3 32.0
Count 1 7 87 95
Total
Expected Count 1.0 7.0 87.0 95.0

Chi-Square Tests
Value df Asymp. Sig. (2-
sided)

Pearson Chi-Square 5.721a 8 .678

Likelihood Ratio 6.067 8 .640
N of Valid Cases 95

a. 10 cells (66.7%) have expected count less than 5. The minimum

expected count is .08.

Interpretation:
Since the calculated significance value is Higher than the prescribed level. The Null
hypothesis is rejected and the alternative hypothesis is accepted. Therefore, there is
significant relationship between income and Preferred Fuel.

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2) relationship between Gender and Brand of four wheeler

Case Processing Summary
Cases

Valid Missing Total

N Percent N Percent N Percent

gender * brand of four wheeler

95 100.0% 0 0.0% 95 100.0%
you use

gender * brand of four wheeler you use Cross tabulation

Brand of four wheeler you use Total

Bajaj Ford Hyundai Suzuki Tata

Count 40 0 1 7 7 1 56
Female
Expected Count 36.5 .6 1.8 7.7 7.7 1.8 56.0
gender
Count 22 1 2 6 6 2 39
Male
Expected Count 25.5 .4 1.2 5.3 5.3 1.2 39.0
Count 62 1 3 13 13 3 95
Total
Expected Count 62.0 1.0 3.0 13.0 13.0 3.0 95.0

Chi-Square Tests
Value df Asymp. Sig. (2-
sided)

Pearson Chi-Square 4.137a 5 .530

Likelihood Ratio 4.463 5 .485
N of Valid Cases 95

a. 6 cells (50.0%) have expected count less than 5. The minimum

expected count is .41.

Interpretation:
Since the calculated significance value is Higher than the prescribed level. The Null
hypothesis is rejected and the Alternative hypothesis is accepted. Therefore, there is
significant relationship between Gender and Brand of four wheeler you use.

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3) Relationship between Income and Money Spent on single visit

Case Processing Summary
Cases

Valid Missing Total

N Percent N Percent N Percent

income * money spent on

95 100.0% 0 0.0% 95 100.0%
single visit

income * money spent on single visit Cross tabulation

Money spent on single visit Total

100 100-200 200-300 300-400 400+

Count 6 11 10 0 1 28
10000-20000
Expected Count 4.7 8.8 9.1 2.7 2.7 28.0
Count 1 3 10 3 1 18
20000-30000
Expected Count 3.0 5.7 5.9 1.7 1.7 18.0

Count 0 1 4 2 1 8
income 30000-40000
Expected Count 1.3 2.5 2.6 .8 .8 8.0

Count 0 1 1 3 4 9
Above 40000
Expected Count 1.5 2.8 2.9 .9 .9 9.0

Count 9 14 6 1 2 32
Less than 10000
Expected Count 5.4 10.1 10.4 3.0 3.0 32.0
Count 16 30 31 9 9 95
Total
Expected Count 16.0 30.0 31.0 9.0 9.0 95.0

Chi-Square Tests
Value df Asymp. Sig. (2-
sided)

Pearson Chi-Square 45.100a 16 .000

Likelihood Ratio 43.953 16 .000
N of Valid Cases 95

a. 18 cells (72.0%) have expected count less than 5. The minimum

expected count is .76.

Interpretation:
Since the calculated significance value is Lesser than the prescribed level. The Null
hypothesis is being accepted and the Alternate hypothesis is rejected. Therefore, there is no
significant difference between Income and Money Spent on a single visit.

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4) Relationship between Age and Number of times respondents visit fuel

station in a week
Case Processing Summary
Cases

Valid Missing Total

N Percent N Percent N Percent

age * number of times

respondents visit fuel station in 95 100.0% 0 0.0% 95 100.0%
a week

age * number of times respondents visit fuel station in a week Cross tabulation
Number of times visit fuel station in a week Total

1 1-2 3-4 5+

Count 8 28 13 0 49
18-25
Expected Count 4.6 27.3 15.5 1.5 49.0

Count 0 15 6 1 22
25-35
Expected Count 2.1 12.3 6.9 .7 22.0
age
Count 0 5 7 1 13
35-40
Expected Count 1.2 7.3 4.1 .4 13.0

Count 1 5 4 1 11
Above 40
Expected Count 1.0 6.1 3.5 .3 11.0
Count 9 53 30 3 95
Total
Expected Count 9.0 53.0 30.0 3.0 95.0

Chi-Square Tests
Value df Asymp. Sig. (2-
sided)

Pearson Chi-Square 13.678a 9 .134

Likelihood Ratio 17.153 9 .046
N of Valid Cases 95

a. 10 cells (62.5%) have expected count less than 5. The minimum

expected count is .35.

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Interpretation:

Since the calculated significance value is Higher than the prescribed level. The Null
hypothesis is rejected and the Alternative hypothesis is accepted. Therefore, there is significant
relationship between Age and Number of times respondents visit fuel station in a week.

SUGGESTIONS:

 Distribution of petrol bunks is an important consideration. Most of the commercial

areas are saturated with fuel stations. Residential areas shall be focused upon.
 The company shall make arrangements to include ATM at most of its outlets with due
consideration of factors like competitors, demand and location.

CONCLUSION:

From this research it is analyzed that primary needs of a consumer is quality & quantity. Today
most of the people uses vehicle (two wheelers and four wheelers) to transport from one place
to another. Even though there are many players in this industry Indian Oil corporation has a
huge difference from others as we see from the survey. The main reason for this is the brand
image and consumer satisfaction towards service quality of Indian Oil.

The upcoming years are the peak years for this industry as the population grows as well as the
usage of own vehicles. It is analyzed that most of the respondents were youngsters who prefers
fueling at a selected fuel station. It shows the clarity of thought of youngsters who gives more
preference to quality and quantity. It also shows that people wants to have other non fueling
outlets in a petrol station. This could be a game changer, because the one who has good
infrastructure gains more customer than others. Now most of the people thinks that the self
service petrol stations are necessary. Everything has to evolve according to the needs in order
to survive and sustain.

References:

1. Kannan V. “A study on the Consumer Perception for Branded Fuels with Special
Reference to Xtra premium Petrol of Indian Oil Corporation Limited”.
2. Anurag Dugar on 2013. “A study on Measuring Consumers’ Preferences and Attitudes
Towards Branded Petrol: An Initial Investigation of the Branded Petrol Market”.
3. Barton, T. L. and J. B. MacArthur. 2003. “Activity-based costing and predatory pricing:
The case of the petroleum retail industry”.

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INFOKARA RESEARCH ISSN NO: 1021-9056

4. Keerthi Anand on 2017. “A study on Consumer Behaviour Towards Petroleum Retail

Outlets”.
5. Naresh.K.Malhotra, “Marketing Research- An applied Orientation, Pearson Education”,
3rd edition, 2002.
6. Rajendra Nargundkar, “Marketing Research- Text and cases- New Delhi: Tata McGraw
Hill”, 2nd edition –2003.

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