News

Gas customers evolve in how they shop for price

February 4, 2014

Price remains the dominant reason why consumers buy gas at a particular location, but how consumers shop for that price is shifting, according to the results of a new consumer survey released today by the National Association of Convenience Stores.

Two-thirds of consumers (66 percent) said that price is the most important factor in determining where they buy gas. But while a majority of these price-conscious consumers still shop by looking at the price posted at stores (57 percent), an increasing number of consumers today pre-plan their trips: Nearly one in five (18 percent) makes a decision based on a specific loyalty card or discount and another 10 percent review gas prices online. And one in seven (14 percent) relies on a specific store's overall reputation for offering the best prices.

Moreover, the price of gas affects broader consumer sentiment beyond the fill-up: 85 percent of consumers say that gas prices affect how they feel about the economy.

"Gas prices play an enormous role in consumers' everyday conversations," said John Eichberger, NACS VP of government relations. "Retailers know that consumers will go someplace else for a difference of a few cents per gallon — and this daily battle for customers is why retail fuel margins are so thin."

Consumers will literally go out of their way to find the best deal for gas prices: 66 percent said they would drive 5 minutes out of their way to save 5 cents per gallon and 39 percent would drive 10 minutes out of their way to save 5 cents per gallon. In addition, consumers are very willing to change their method of payment if it leads to cost savings: 78 percent would switch from paying by credit card to debit card and 66 percent would pay by cash to save 5 cents per gallon.

The national survey of more than 1,100 consumers was conducted by Penn, Schoen and Berland Associates LLC. It examined how consumers shop for gas and other items, what changes their behavior and how gas prices affect their views on fueling and the broader economy.

Read more about consumer behavior.