1

RESEARCH PROPOSAL

INTRODUCTION
Problem
5

The purpose of this study was to know "Why people prefer different
fuel stations" and what are the independent variables that help
them to select the fuel stations.
Need
The fuel stations had gone a revolutionary change.

10

An intense

competition is started among different fuel pumps. So a need was

felt to study the comparative situation and to know what changes
are taking place and why. This study will benefit to the oil
companies as well as the consumer.

BACKGROUND
As mentioned above that there is a change taking place in the
setting up of the petrol pumps and consumer are becoming aware
of the quality of fuel and the Quality of Services and outlook of
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these fuel stations. Moreover, it is also necessary to remove the

complaints and know where different petrol pumps are lacking
behind. So this research was conducted to help out the one of
different oil companies fuel station in Lahore.
The objective of this research is that different oil companies will be

10

able to judge the general perception among consumer regarding

the independent variable they find important when selecting fuel
stations.
The consumer will be benefited from this study because their
problems and complaints regarding. Fuel stations, will come to

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surface through this research.

PROCEDURE
METHOD AND SOURCES
Questionnaire of method will be used in collecting the data from
respondents.
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Plan of Attack
I will take sample based on non probability convenience sampling.
Under this mode 50 respondents will be surveyed from various
Petrol Pumps of Lahore.

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SEQUENCE OF ACTIVITIES
First of all we will design the Questionnaire.
Then will distribute them, and collect the information at the spot.
After collecting all the data. I will summarize the result in the
written as well as graphic form.

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Equipment & facilities

(Used for the Interpretation of Data)

-

Computer

Calculator

Personal Qualification

We are in (B.com Hons) doing a course of Business Research.

Reference
-

Liberty Market Cantt Jail Road Defence, Model Town, Garden

Town.

5
-

Fuel stations of Shell - Caltex and PSO are visited in the

above mentioned location.

SECTION -1

INTRODUCTION TO THE STUDY

STATEMENT OF PROBLEM
5

The purpose of this study to know "why people prefer different fuel
stations?", and what are independent variable help them to Select
the Fuel station.

SIGNIFICANCE OF THE STUDY

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Benefits to the Students

The research will help the students to gain knowledge about the
problem encountered by researcher while undertaking a research
project.

Benefits to the Oil Companies

Through the results of this study, the Oil Companies will be able to
judge the general perception among consumers. That why they
select different fuel stations.
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BENEFITS TO CONSUMERS
The consumers will benefit from this study because problems and
complaints, regarding Fuel Stations, will come to surface through
this research.

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RESEARCH HYPOTHESIS
1.

NH

People do not care about the quality of fuel when

selecting a fuel station.

AH

Quality of fuel is an important consideration for

people when selecting a fuel station.

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2.

NH

People kept in mind their personal control while

selecting a fuel station.

AH

People don't keep in mind their personal control

while selecting a fuel station.

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3.

NH

Consumer Select Fuel Station on Easy excess

bases

AH

Consumer don't select fuel station on Easy excess

bases

4.

NH

Credit & acceptance is major factor to select a

fuel station.

15
AH

Credit & acceptance is not major factor to select

a fuel station.

5.

NH

People are concious about the "Quick service

AH

People are not concious about the quick service.

SECTION - II

RESEARCH METHODOLOGY

DATA COLLECTION TOOLS

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Questionnaire method was adopted in collecting the data from

respondents. (Questionnaire, comprising 9 questions. All of

the

questions were close ended. They were devised in such a way that
all the relevant information was made available.
I was successful in gathering information about the preference of
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consumers regarding different Fuel Stations, and their perception

about the select of fuel stations.

SAMPLE SELECTION
The modus operandi regarding the selection of the sample was
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based on "Non-Probability Convenience Sampling." Under this

mode 50 respondents were surveyed from various localities of
Lahore.

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The various localities of respondents are illustrated in the following

table:

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Sr. No.
1.
2.
3.
4.
5.

Residential Area
Model Town
Faisal Town
Defence
Gulberg
Cantt.
Total
Table 2.1

No. of Respondents
5
6
8
14
7
40

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STATISTICAL ANALYSIS
To calculate the numerical results, percentages were calculated of
the various responses which were then tabulated. It was calculated
in the following number.
5

Q)

Do you drive a Company Vehicle?

Yes

10

No

30

% age of respondents having Company Vehicle?

No. of "Yes"
-----------------------------10

Total Respondents x 100

10/40 x 100 = 25%

SCOPE OF THE STUDY

The research study was conducted as a requirement of the course
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of research methods for Business gather, analyze, interpret and

present the "Preference of consumer different Fuel Stations".

LIMITATION OF STUDY

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I conducted the research through questionnaires.

Where there may be sampling errors in responding to certain
questions due to lack of time and inadequate educational
background of the respondents. Some questions? Questionnaires
5

had to be marked invalid. In some situations I had to use personal

judgment in completing the questionnaires.

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SECTION - III

DATA ANALYSIS
NO. OF QUESTIONNAIRES FILLED
Total Questionnaire filled
5

Valid

50
10

Invalid

40

Table 3.1
Total No. of questionnaires distributed were 50 and only 10 of them
10

were felt that these are not filled correctly. So I here have 40
questionnaire and its results is based on these valid questionnaire.

VARIOUS AREAS OF LAHORE

As you can see in table 2.1 that I have distributed questionnaires
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from various areas of Lahore. 5 questionnaires have been filled

from Model Town, 6 from Faisal Town, 8 from Defence, 14 from
Gulberg and 7 from Cantt.

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WEEKLY RUNNING (IN KMS) OF YOUR VEHICLES (S)

10

Range of Running
(in mks)

No. of
people

% age Weekly
Running

Less than 50 kms

7.5%

51 kms - 100 kms

15%

101 kms - 150 kms

22.5%

151 kms -200 kms

20%

201 kms - 200 kms

20%

251 kms - 300 kms

15%

Total

40

100%

Table 3.2
On asking about the average weekly mileage of vehicles in Lahore.
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About 7.5% said that they drive less than 50 kms. 15% says that
they drive between 51 km and 100 kms. About 22.5% says that
they drive in the slab of 101-150 kms. 20% says for 151-200 kms.
20% aid for 201 kms. 250 kms and 15% drive in 251 km 300 kms.

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WEEKLY CONSUMPTION OF PETROL IN LITERS.

(For all types of vehicles care, wagons & motorcycles)
Weekly Consumption
(In liters)
5

No. of
People

Percentage

0-10 liters

10%

11-20 liters

15%

21-30 liters

10

25%

31-40 liters

12

30%

20%

Above 40 liters
Table 3.3

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Table 3.3 shows about the consumption of petrol in liters.It shows

that 4 people use within the range of 0-10 liters, 6 people use
within the range of 11-20 liters, 12 persons said that they use
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petrol with in 31-40 liters and 8% person said they used more than
40 liters of petrol.

20

25

PREFERENCE OF COMPANY'S FUEL STATION

Company Name

No.of Persons

Percentage

Caltex

12

30%

Shell

20

50%

PSO

20%

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Table 3.4 shows the popularity and preferences of different petrol

pumps which different people have in their mind. According to the
findings the most popular petrol company is Shell with 50% of
preference. The second no. is of Caltex with 30% and least is of PSO
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with only 20$.

This also shows about the quality of petrol that

different petrol pumps offer. So Shell is of best quality and PSO with
low quality.

DEMOGRAPHIC CHARACTERISTICS
10

No. of Male and Female People

Male
28

Female

Total

12

40

Table 3.5 (a)

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The people I have selected were 40, out of them 28 persons were
male and only 12 were female. This is very necessary to find for my
recommendations and results.

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Age
Below 20 Years
5

No.of Persons

Percentage

10%

21-30 years`
31-40 years
41-50 years

10
12
4

25%
30%
20%

51 and above

15%

40

100%

Total

Table 3.5 (b)

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The people whom I have visited were of different age groups.

among them only 10% were of less

than 20 years old and 25%

were between 21 and 30 years,30% were in between 31-40 years,

20% were lying in between 41-50 years age groups and r est of
15% were lying above 50 years old.
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The considerations that people keep in mind while selecting a "Fuel

Station".

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EFFECT OF INDEPENDENT
DEPENDENT VARIABLE

VARIABLES ON THE

1.

Quality

25

25/40 x 100 = 62.5%

2.

Easy Access

6/40 x 100 = 15%

3.

Personal Contacts

4/40 x 100 = 10%

4.

Credit and Acceptance

3/40 x 100 = 7.2

5.

Quick Service

2/40 x 100 = 5%

10

15
These tablespoons that these are the major factors which effect the
decision making of the consumer to select the fuel station.

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CONCLUSIONS
From the research findings, I conclude that people have become
more quality conics. Most people consider quality fuel as the most
important independent variable in scheduling a fuel station. People
5

also consider "easy access" and "quick service" and important

independent variable while selecting a fuel station.
People from an opinion about the quality of fuel, mostly, through
the sound of the engine of their vehicle. They also consider the per
liter Mileage they extract from the fuel as an important factor in

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forming an opinion about the quality of fuel. Some segments of the

population consider other factors as well, such as, color of smoke.
pickup etc.
According to my survey, it is evident that Shell fuel stations are the
first pre-reference of most people. Caltex is second followed by the

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least preferred PSO.

That part of the population who drives company vehicles, most use
Caltex fuel stations, second is Shell and last is PSO.

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RECOMMENDATIONS
1.

The petroleum industry should set strict standards about the

quality of fuel. Frequent tests should be conducted at various
fuel stations to ensure the quality of fuel.

2.

Individual companies, apart from improving the appearance of

fuel stations, should concentrate on the quality of fuel. The
respective Oil company people should conduct frequent test at
various times of the day to ensure that quality of fuel remains
consistent. The companies in industries should increase
control over fuel stations to maintain quality of fuel because

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this is essential to maintain there long term share in the

Market.
3.

New Fuel stations should be set up near residential localities of

Lahore because people consider easy access as an important
factor is selecting a fuel stations.

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4.

The promotional campaigns of the fuel companies should be

targeted towards forming a positive opinion about the quality
of fuel.

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5.

The petroleum industry should try to educate the consumers

about quality of fuel. Most of the people form an opinion about
quality of fuel by the sound of the engine of their vehicles.
They should be informed that apart from this factor what are
other simples techniques that can help them form an opinion

about the quality of fuel.

6.

The concepts of convenience ships at fuel stations is new in

Pakistan mostly people do not consider it an important factor
in selecting a fuel station. There are only a few selected places
where it is expected that people would use them.

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7.

Recommendations for Shell The company should try to

setup fuel station near residential areas of Lahore. The people
of Model Town prefer shell as their fuel company but there was
no revived fuel station in this area. This and other parts of the

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market could be lost because many people consider easy

access as an important independent variable whole selecting a
fuel station. They should tap this market.

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8.

Recommendation for Caltex. They should continue their

strategy of giving the fuel stations a new look. The general
appearance of the pumps should be improved because some
segments of people consider it as an important variable in
selection of fuel station.

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9.

Recommendation for PSO. They will have to come up with a

new strategy. The fuel stations should be given a new look,
more emphasis on quality of fuel should be made. This would
help the company in regaining their lost market share.

QUESTIONNAIRE
SAMPLES
The purpose of this study is to find "why people prefer different fuel
5

stations".

This research is being conducted by the student of Hailey College

of Commerce Punjab University Lahore. The information obtained
through this questionnaire would be kept confidential and for this
10

study only. Please take a few minutes to answer these questions.

QUESTIONS
Q.1
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NAME ____________

AGE _____________

MALE ____________

FEMALE ___________

Q.2. Please specify your residential area?

Model Town _______________

Defence _____________

Gulberg _________________

Faisal Town___________

Cantt. _____________
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Q.3

What type of vehicles (s) do you have?

Car _________ Motorcycle ______ Van ______

Q.4

How many vehicle (s) do you have for your household?

Car (s) __________ Motorcycle (s) _____________

Van (s) __________

Q. 5 What type of fuel do you normally use in you vehicle?
Super ___ Regular ____ Diesel _____ Hi Octane ____
Q. 6 What is the weekly running (in kms) of your vehicle (s)?
Less than 50 km ________ 201 kms - 2560 kms ______

51 kms - 100 kms ________ 251 kms - 300 kms _______

101 kms - 15- kms
301 kms and above ________
151 kms 200 kms _________
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7.

How much fuel does you vehicle (s) usually consume in a

week?
0-10- liters _________ 21-30 liters __________
Above 40 liters _______ 11-20 liters _________
31-40 liters __________

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Q.8. Do you drive a Company vehicle?

Yes _________ No __________
Q.9

What are your considerations in selecting a fuel station?

(Note: You may work more than one choice.)

Easy access _________ Convenience shops __________
Quick service ________ Quality fuel _________
Credit and acceptance _________
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Any other _____________

(Please specify)
Thank you for your cooperation!

EXECUTIVE SUMMARY
The petroleum industry has encountered many changes recently.
Fuel stations have undergone a revolutionary change. Their general
appearance,. accommodating capacity, etc. have become improved
5

with the influx of cars in the local markets. This increase has been
due to.

10

Yellow Cab scheme introduced by Government of Pakistan.

Increase in number of Local car assemblers.

Increase in production of already existing car assemblers.

Most importantly due to increase in the population.

The consumption of fuel, thus, has risen quite sharply. To counter

this increase in demand, the fuel companies are coming up with
new marketing strategies. The first company that came up with
such strategies.
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The first company that came up with such

strategies was CALTEX. They began by changing the appearance of

the

stations,

fitting

electronic

fuel

pumps,

and

then

the

convenience shapes. After that Pakistan Burma Shell was sold

internationally to a company "Shell", they also came up with new

strategies along with following the strategies made by Caltex. The

largest company, in terms of sales volume. Pakistan State Oil (PSO)
also followed the trend. There was a need of research study to find
out the success of the strategies, current preference of consumers
5

among their fuel companies.

The required information were sought at through a questionnaire
which was aimed at finding preferences of consumers among the
fuel companies in this regard, dependent variable is "How people
select the filling station. Independent variable are Quality, guage,

10

easy Access. Personal contact. Convenience shop. Quick service,

credit acceptance.
A samples of 50 questionnaire were selected through non
probability

convenience

sampling

technique.

Out

of

these

questionnaires 40 were fond to be valued for the study. The results

15

were than to bulted and percentages calculated.

BUSINESS RESEARCH
5

PROPOSAL
ON
PETROLEUM
10

15

HAILEY COLLAGE OF
COMMERCEUNIVERSITY OF THE
PUNJAB
5

PRESENTED TO:
10

PROF.SAJID JAVEDAKBAR

15

PRESENTED BY:

20

25

SYED HAIDER ALI

JAZIB ALI
ASIM WILLIAM
USAMA MAJEED

ROLL #950
ROLL # 958
ROLL # 964
ROLL # 975

SECTION # F (afternoon)
TABLE OF CONTENTS

Description

Folio

Acknowledgement
10

Executive Summary
Research Proposal...........................................................................1
Background.....................................................................................2
Procedure........................................................................................3
Introduction to the Study................................................................5

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Benefits to the Oil Companies........................................................6

Benefits to the Oil Consumers........................................................6
Research Hypothesis......................................................................7
Research Methodology....................................................................8
Statistical Analysis........................................................................10

20

Data Analysis................................................................................12
Demographic Characteristics........................................................15
Effect of Independent Variables
on the Dependent Variable..........................................................17

25

Conclusions...................................................................................18
Recommendations........................................................................19

Questionnaire

ACKNOWLEDGEMENT
This project came true only by the grace of Al-Mighty
Allah, Most Gracious, and Most Merciful, Whose help,
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divine Guidance and Omnipresence was felt at every

step and breath during the preparation of this project.
We are extremely thankful to Prof. Sajid Javed Akbar at
Punjab University, Lahore, whose knowledge has been
freely utilized in the preparation of this project. He has

15

always inspired and guided us in the true spirit of a

teacher.
We acknowledge with great honor, Managers of
petroleum companies, for his kind co-operation and
personal efforts. We record our sincere thanks to them,

for his pleural help without which this project would

have been markedly delayed.
We are extremely thankful to other members of the
petroleum department, who provided us different ideas
5

to improve our content of the project.

The acknowledgement shall be incomplete if we would
not verbalize few words about our parents. They
changed the course of our life and groomed us as a
business student.

10

15

It is quite possible that there are errors of omissions and

commissions in this mostly single-handed attempt. We
would be grateful to the readers for their suggestions to
improve this project from all angles.