CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Having a strong brand in the market competition is the main goal of many organizations. This

owns to its ability to create a wide range of benefits to organizations including reduced risk,

greater profits, co-operation with other parties as well as the opportunity for brand extension

(Hawkins, Best, & Coney, 2004; Assael, 2004; Schiffman & Kanuk, 2010). Brand is considered

to contribute to maintain the competitiveness of the existence of offers given because the brand

is usually associated with a particular image that can create certain associations in the minds of

consumers (Aaker, 1997). Creation of unique brands is the starting point for the creation of

marketing characteristics that can strengthen the brand image of the organization (Chaudhuri &

Holbrook, 2001; Ghodeswar, 2008; Srivastava, Fahey and Christensen, 2001; Pujadi 2010).

With the business environment rapidly changing, it is imperative for organizations to constantly

adapt their activities in order to succeed (Ansof, 1987). Economies have been liberalized leading

to more new markets and new entrants. Competition has set in with firms aiming to increase,

gain, or maintain their market share. The fast changing global business environment have led to

more competition, increased choice for customers, lower prices, lower margins, replacement of

tangible assets with information dramatically changing global structures, from independence to

interdependence. Boundaries are collapsing and market economies expanding (World economic

outlook, 1997).

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On the other hand consumers are faced with a variety of choices on where to buy goods as well

as services. They are constantly being bombarded by discounts, other offers and have access to

an ever widening range of competitive alternatives in nearly all shopping categories. Moreover,

they have a growing number of shopping options including internet and even more recently,

mobile shopping. As a result of the foregoing developments in the market, consumers are

seeking the best offers and are highly skeptical about those who do not provide clear value for

money. In fact, customers have become very choosy in terms of what they purchase, where they

purchase and how they make their purchases (Davidson, 1988). (Kotler, 2006) echoes the same

sentiment by his observation that consumers have become more educated and informed more

than ever before and they have the tools to verify companies' claims and seek out superior

alternatives.

In order to cope up with the competitive challenges, firms have undertaken various strategic

measures. To win the consumers, businesses have to ride on a Unique Selling Proposition (USP)

in order to stay ahead of the competitors (Hewett, 2002). According to Randall (1994), any

brand, which succeeds over time, has something about it, which is better than its competitors. It

is this factors that influences the customers behavior and intention to remain loyal to the brand.

Customer behaviour is the process where individuals or groups select, purchase, use or dispose

of products, services, ideas or experience to satisfy needs and desire. Prior to choice of any

products or services, customers place a numbers of attributes in their choice sets. Among these

are price, quality and services quality. However, studies have shown that besides price and

2
quality, other signals that are considered as more important to assess product’s worth are brand

image, past experience, attitude and product’s information.

Consumer choice of fuel station has been of interest for decades. The existence of alternatives

demands preference and choice of fuel stations based on the customers unique and diverse needs.

Like all consumers of other products, the customer decision making process is influenced by

both internal and external factors. However, due to the type of product and purpose for it

consumption, customers’ intention to buy petroleum product are mostly determined by external

factors like quality of service, customer relations and of course the brand image.

1.2 STATEMENT OF THE PROBLEM

The oil industry landscape in Nigeria is dynamic with rapid withdrawals and entry by smaller

local operators. The reason for these withdrawal and entry is not far fetched. It is a popular

perception in the country that the industry is the economy driver. As a result many business

owners want to delve into it even with little or no experience in the industry. (Kakunu, 2012)

In the last few years, the petroleum service sector has undergone drastic changes, resulting in a

market place which is characterized by intense competition, little growth in primary demand. Oil

marketers are forced to find new basis for competition and they have to improve the quality of

their own services. (Musyoka 2012)

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However, even with all this innovation some fuel station only experience a maximum sales

during fuel scarcity in the country. This is as a result of customers’ preferences and purchase

behaviour. With fuel stations in every 10km in a city like Lagos, the question is how is brand

image influencing customers’ choice of filling station to purchase petroleum products.

1.3 AIM AND OBJECTIVES OF THE STUDY

The aim of this study is to show the influence of brand image in customers’ intention to purchase

petroleum products. The study also has the following objectives:

i. To investigate customer perception of brand image of selected filling stations in Lagos

ii. To access purchase intention of customers of selected filling stations in Lagos

iii. To explore the relationship between customer perception of brand image and purchase

intention of petroleum products

iv. To identify the influence of brand image on purchasing behaviour of customers of

petroleum products

1.4 RELEVANT RESEARCH QUESTIONS

i. What are the customers’ perceptions of brand image in selected filling stations in Lagos?

ii. What are the purchase intentions of customers of selected filling stations in Lagos?

iii. What is the relationship between customer perception of brand image and purchase

intention of petroleum products?

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 iv. How does brand image influence purchasing behaviour of customers of petroleum

products?

1.5 RELEVANT RESEARCH HYPOTHESES

Ho1: There is no relationship between customer perception of brand image and purchase

intention of petroleum products.

Hi1: There is relationship between customer perception of brand image and purchase intention

of petroleum products

Ho2: There no influence of brand image on purchasing behaviour of customers of petroleum

products

Hi2: There is influence of brand image on purchasing behaviour of customers of petroleum

products

Ho3: There are no distinctive purchase intentions of the customers of selected filling stations in

Lagos

Hi3: There are distinctive purchase intentions of the customers of selected filling stations in

Lagos

1.6 SIGNIFICANCE OF THE STUDY

The study findings will provide useful and pertinent information to brand managers and thus

enable them to device marketing strategies that would win customers’ minds.

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It will also form a basis for conducting further research in this area of scholarship. The findings

of the study are thus useful to the policy makers in the management of oil industry and fuel

station in particular. This will help them assess the potential loss of earnings arising from the

lack of creating a strong brand image for their stations. It will also furnish potential investors

who are keen in establishing petroleum service outlets with useful information in making sound

decisions on their investments.

Finally, the study will provide additional information to the body of literature in the field of

customer choice selection. It will also provide further knowledge in the field of marketing

arrangements.

1.7 SCOPE OF THE STUDY

This research is designed to cover selected fuel stations located within the same environment in

the city of Lagos. Questionnaire will be given out to 50 respondents and customers who are at

the 5 fuel stations selected for the research. Our choice of using more than one fuel stations is

informed by the determination get an accurate data as to why some customers prefer one fuel

station to the other.

1.8 DEFINITION OF TERMS

Brand Image

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Brand image is the series of brand involvement stored in a consumer’s memory. Brand image is

also regarded as a description of the offer of the company which includes the symbolic meaning

associated customers through specific attributes of the products or services. It is also regarded as

opinion and consumer confidence in the quality of products produced by organizations and

organizational honesty in the products offered to consumers.

Brand Trust

Consumers’ perceptions of the quality of the brand created by informational cues associated with

the brand. The gesture is intrinsic or extrinsic and both or one of them can be found on the brand

that became the basis for the perception of quality. It is also the willingness of the average

consumer to rely on the ability of the brand to perform its stated function. Brand trust arises after

consumers’ evaluation of companies’ offerings.

Brand Satisfaction

It is a measure of how products and services supplied by a company meet or surpass customer

expectation. It is also the number of customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

Brand Attachment

Brand attachment is the strength of the cognitive and affective bond connecting the brand with

the self. Attachment denotes a psychological state of mind in which a strong cognitive and

affective bond connects a brand with an individual in such a way that the brand is viewed as an

extension of the self. The collection of characteristics, traits, and memberships that cognitively

7
represent an individual in memory is generally described as the self-concept (Greenwald and

Pratkanis, 1984). An attachment object becomes connected to the self when it is included as part

of the consumer’s self-concept.

Purchase Intention

The willingness of a customer to buy a certain product or a certain service is known as purchase

intention. Purchase intention is a dependent variable that depends on several external and internal

factors.

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 REFERENCES

Aaker, J. L. (1997). Dimensions of Brand Personality. Journal of Marketing Research,

34(3),347-356. http://dx.doi.org/10.2307/3151897

Hawkins, D. I., Best, R. J., & Coney, K. A. (2004). Consumer Behavior – Building Marketing

Strategy. New York: McGraw-Hill.

Schiffman, L. G., & Kanuk, L. L. (2010). Consumer Behavior. New Jersey: Pearson Prentice

Hall.

Assael, H. (2004). Consumer Behavior - A Strategic Approarch. Boston: Houghton Mifflin.

Chaudhuri, A., & Holbrook, M. B. (2001). The Chain of Effects from Brand Trust and Brand

Affect to Brand Performance: the Role of Brand Loyalty. Journal of Marketing,

65(April), 81-93. http://dx.doi.org/10.1509/jmkg.65.2.81.18255.

Kakunu, Jacob (2012). Determinants of Consumer Preference in Choice of Petroleum Service

Outlets in Nairobi. Online.

Srivastava, R. K., Fahey, L., & Christensen, H. K. (2001). The Resource-Based View and

Marketing: The Role of Market-Based Assets in Gaining Competitive Advantage.

Journal of Management, 27, 777-802.

Musyoka, Julius (2012). Factors that Influence Customers’ Selection of Petroleum Station in

Kano. Master of Business Administration thesis submitted to Bayero University.

Pujadi, B. (2010). Studi Tentang Pengaruh Citra Merek Terhadap Minat Beli Melaui Sikap

Terhadap Merek. Semarang: Program Magister Manajemen Universitas

Diponegoro.

Kotler, P. & Keller K. L. (2006), Marketing Management .12th edition. Prentice Hall.

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Davidson, W.R and DJ Sweeney and RS Stempfi (2000): Retailing Management, Singapore,

John Willy and Sons Ltd.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 PREAMBLE

This chapter focuses on the views, journals, articles and other written materials produced by

different scholars in the field of business administration and the oil and gas industry in Nigeria

and elsewhere. Although there are limited materials on the studies on the petroleum industry, the

few available ones have been able to add to our understanding and corroborate the objectives of

this research.

2.2 THEORETICAL FRAMEWORK OF THE STUDY

Like every field of enquiry, there are some theories and models that guide the concept of

consumer buying behaviour. They are organized system of accepted knowledge that applies in a

variety of circumstances to explain a specific set of phenomena. In consumer intention to

purchase petroleum products, the theories and models of consumer buying behaviour are the

pedestal on which this study lies.

2.2.1 THEORIES OF CONSUMER BUYING BEHAVIOUR

According to Blackwell et al. (2001), marketing starts with the analysis of consumer behaviour,

which is defined as those acts of individuals directly involved in obtaining, using, and disposing

of economic goods and services, including the decision processes that precede and determine

these acts. Knowledge of consumer behaviour is an indispensable input to promotional mix

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decisions. This, in turn, is not confined to manufacturers but extends into the realms of the

retailer and the nonprofit marketers.

Different fields of science are important when studying consumer behaviour (Economics,

Psychology, Sociology, Methodology, Statistics, etc.). Until 1950, the field of economics was the

main contributor in explaining consumer behaviour (Wierenga and van Raaij 1987). Theories

regarding utility functions were developed that describe a consumer’s allocation process of

income across products to maximize utility. Especially effects of price and income changes could

be studied using utility functions. Later on, marketers borrowed rather indiscriminately from

social psychology, sociology, anthropology, or any other field of inquiry that might relate to

consumer behaviour in some ways. During the 1960s the behavioural approach of consumer

behaviour emerged as a field of academic study.

It is very difficult to identify the causes of consumer behaviour. People buy things for many

reasons. They seldom are aware of all their feelings and thought processes concerning purchases,

and many external forces, such as economic and social conditions, constrain their behavior.

Scholars in marketing and the behavioral sciences have attempted to search for simplified, yet

fundamental, aspects of consumption in order to better understand and predict at least a portion

of behavior in the marketplace. Three outstanding models underlie most of the theories that

scholars have advanced: the economic model, the stimulus response model, and the stimulus-

organism-response model (Bagozzi 1986).

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2.2.2. ECONOMIC MODEL

Economists were the first to propose a formal theory of consumer behaviour (Bagozzi 1986).

Their model has led to the so-called vision of economic man, which basically builds on the

following premises:

1 Consumers are rational in their behavior.

2 They attempt to maximize their satisfaction in exchanges using their limited resources.

3 They have complete information on alternatives to them in exchanges.

4 These exchanges are relatively free from external influences.

Actually, not every approach in economics is based on all four premises. Especially the second

premise is the basis for the neoclassical economic theory of consumer behaviour today. That

theory assumes that the consumption of goods and services is motivated by the utility that these

goods and services provide. Moreover, it assumes that the choices of the consumer will be

constrained by his or her resources.

The economic model hypothesizes that quantity bought (an observable phenomenon) will be a

function of income, prices, and tastes (which, with the possible exception of tastes, are also

observable). The mechanism or theory behind the prediction lies in the implied decision process.

It is assumed that the consumer attempts to maximize his or her utility, subject to budget

constraints. Utility is believed to be unobservable. As a consequence, economists have

concentrated primarily on the relationship of easily measured variables, such as income and

prices, on quantity bought and have not systematically explored the decision criteria consumers

might use to make choices.

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Although there has been a lot of empirical research applying the economic model (e.g., Allen and

Bowley 1935, Wold 1952, Koyck et al. 1956), most of these studies focused on commodities or

on product categories (instead of branded products), and on price and income elasticities.

Overall, the economic model has several attractive features. First of all, it has proven to be an

important descriptive tool. The economic model provides answers that are mathematically

rigorous, yet simple and intuitive. Furthermore, it has aided in the forecast of the quantity

bought. On the other hand, the economic model suffers from a number of drawbacks. First of all,

it is oversimplified. It fails to consider many real psychological, social, and cultural determinants

of this quantity bought. Second, the model provides only limited guidance for managers. For

example, marketers know that, in addition to income and prices, advertising, promotion, product

characteristics, and distribution policies influence consumption, but the economic model

provides little guidance in this regard.

Third, the economic model takes the utility function as given, ignoring the mental decision

processes underlying it. Preferences are another facet of the economic model toward which

economists have been ambivalent. Some economists (e.g., Marshall 1938) have incorporated

them in their work, but most economists have ignored them. Marshall (1938) acknowledged that

households can have different utility functions. Purchases were dealt with at the household level.

Differences between for example poor and rich households were discussed. But, the mainstream

of economists did not make use of these insights. They drifted back to abstract, technical

discussions of purchase behavior. Marketers, however, were especially intrigued by this

individual approach, which led to the development of stimulus-response models, as discussed in

the next sub-section. Such a model does take the individual level into account. It places

14
considerable emphasis on marketing mix elements and the effects they have on consumer

actions. However, it does not specify how the marketing mix produces responses. The stimulus-

organism-response model, as discussed in section 2.2.3, strives to delineate the structures and

processes internal to the consumer, which actually regulate choices.

2.2.3 STIMULUS-RESPONSE MODEL

Marketing managers have found the economic model particularly lacking in its ability to suggest

specific actions for influencing consumption or for anticipating specific demands of consumers

(unless resulting from price actions). A firm or organization has quite an extensive marketing

mix repertoire. For instance, a firm can vary prices, discounts allowances, wholesale and retail

locations, and a whole host of other tactics. Individual marketing mix variables can lead to more

than one response on the part of the consumer with varying degrees of success. Most firms need

guidelines that will indicate how their actions actually influence trial and repeat purchases by

consumers. Consumers’ actions or their reactions to marketing mix stimuli include increased

awareness of, interest in, and desire for a product, in addition to actual purchase of the product.

Katona (1951) was one of the first researchers that focused the attention on psychological and

sociological factors, in order to explain the large variability in expenditures on durable goods.

This development was a reaction to the economic model, which Katona (1951) claimed missed a

number of important details. By use of a stimulus-response approach, marketers can discover the

reactions of consumers to different advertising appeals, package designs, and prices, to name a

few stimuli. The stimulus-response model is an appealing model. First of all, it is simple, which

15
makes it easy to understand and communicate to others. Second, it is a highly useful managerial

tool and it has been found to work well in the past. On the other hand, the stimulus-response

model falls short on one very important and far-reaching criterion: it omits the processes through

which stimuli induce responses. Marketers need to now how their actions bring about responses

so that they can more effectively and efficiently design and target their stimuli. Another

limitation is that it fails to allow for the possibility that some purchase behaviors are self-

generated and (almost) uninfluenced by external stimuli.

The stimulus-response model, by definition, ignores the origin and determination of buying

intentions. People are represented as being buffeted by stimuli rather than freely discovering

their needs and choosing among alternatives. Consumers, of course, make purchases in both

ways, depending on the circumstances, and marketers need theory rich enough to capture the

dynamics. Recognizing the need to examine how stimuli actually influence responses, marketers

have increasingly turned to approaches representing the psychological and psychological

processes governing behavior. The general form that these efforts take is dealt with in the next

section.

2.2.4 STIMULUS-ORGANISM-RESPONSE MODEL

Figure 2.2 illustrates the general form of the stimulus-organism response system where the

organism stands for a constellation of internal processes and structures intervening between

stimuli external to the person and the final actions, reactions, or responses emitted (Bagozzi

1986).

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It is noticed that the intervening processes and structures consist of perceptual, physiological,

feeling, and thinking activities (for example needs and preferences). Obviously, these are

complex, multifaceted aspects of human behavior. In reality, consumer decision-making

processes are quite complex and are influenced by many forces both within and around the

individual. Fortunately, it is possible to identify a relatively small number of elements common

to most everyday consumption decisions. The general model of consumer behavior is an

abstraction designed to symbolically represent most of the major elements and processes in all

consumer choice decisions.

2.2.5 TRAIT THEORY

Trait theory represents a quantitative approach to the study of personality (Blackwell et al.2001).

This theory postulates that an individual’s personality is composed of definite predispositional

attributes called traits. It is assumed that traits are common to many individuals and vary in

absolute amounts between individuals (Mischel 1968). It is further assumed that these traits are

relatively stable and exert fairly universal effects on behavior regardless of the environmental

situation (Sanford 1970). The final assumption asserts that traits can be inferred from the

measurement of behavioral indicators. Some well-known examples of traits are aggressiveness,

dominance, friendliness, sociability, extroversion, empathy, innovativeness, deal proneness,

variety seeking, etc.

One of the questions we started this chapter with was the following: “How dopeople go about

making decisions and choices in the market place and how can sales promotions influence these

17
decisions and choices?” The theories and models mentioned thus far (economic theory, stimulus-

response model, stimulus-organism-response model, trait theory) provide some insights in the

first part of this question. In the next section, these consumer behavior theories are applied to the

field of sales promotions to answer the second part of the question.

2.2.6 ATTRIBUTION THEORY

It describes how consumers explain the causes of events. These explanations are called

“attributions.” Attributions cause a change in attitude rather than a change in behavior.

Attribution theory does not formally address the behavioral consequences of a consumer’s

attributions. However, to the extent that attitudes are the antecedents of behavior, the theory is

relevant. Suppose that brand X is promoted. Questions could be: ‘why is brand X being

promoted?’ A possible attribution could be: ‘brand X is being promoted because they can’t sell it

at its regular price.’ It’s probably a low-quality product’, or brand X is being promoted because

the store manager knows brand X is very popular that it will bring in more customers into the

store.’ This example illustrates that there can be more than one attribution associated with a

certain event.

Three types of attribution theories can be distinguished that differ in the object of attribution:

self-perception (“why did I buy”), object-perception (“why is brand X on promotion”), and

person-perception (“why did the salesperson talk more about brand Y, when brand X was on

sale”).

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 i. Self Perception Theory: According to this theory, individuals form their attitudes by trying to

be consistent with their past behavior. The key question individuals ask themselves is

whether the action they take is due to external causes (e.g., a promotion) or internal causes

(e.g., favorable brand attitude). For example, if strong external causes are present, the

individual invokes the “discounting principle,” whereby internal causes are disregarded. As a

result, brand attitude (e.g., the repeat purchase probability) does not necessarily change.

Another application of self-perception theory to promotions is the “foot-in-thedoor”

technique. This technique of selling is to induce the consumer with a more long-term

behaviour (e.g., use a sample) in the hope that the consumer will then be more likely to

engage in more complex behavior (e.g., purchase the brand at full price).

ii. Object-perception theory considers three factors that affect the attribution: (1) the

distinctiveness of the event involving the object, (2) the consistency of that event over time

or situation, and (3) the way others react. Consider the case of judging the quality of a brand

based on the event that it is being promoted. If only this brand or a small subset of brands

promotes, this event is relatively distinct. If, in addition the promotion occurs often, and at all

stores, it is consistent over time and situation. It thus becomes easier for the consumer to

draw an attribution about the brand (“this brand must be low quality-they are trying to give it

away”). If a neighbour encounters the same events and begins to form the same opinion, the

attribution becomes even more solid. An implication of object perception theory to the

current retailing environment for fast moving consumer goods (FMCG) is that promotion

will not degrade most brand’s images, because almost all brands promote often.

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iii. Person-perception theory is not very relevant for sales promotion research and will therefore

not be dealt with more in-depth. It is important to remark that dissonance theory underlies

many of the attribution theories. The theory is based on the notion that behavior often causes

inconsistency or dissonance, which can be resolved by changing the belief that is dissonant

with the other belief. For example, if a consumer buys a brand on promotion and finds the

brand unsatisfactory, this contradiction can be resolved by ascribing the purchase to the

promotion.

2.3 EMPIRICAL REVIEW ON BRAND IMAGE

Different researchers and scholars have conducted several researches that tend to point out the

influence of brand image in customers intention to purchase certain products. In most of these

researches, the concept of consumer behaviour has always been the bedrock of their argument

with different researchers validating their summations with some of the theories and models

explained under the theoretical framework of this study. In this manner, this study at this

juncture looks at some previous related works in this area that can aid our understanding of some

important concepts.

The main fundamental aspect of consumer behaviour is their purchase intention which in

literature is defined as the situation in which a customer is agreeable to make a transaction with

the retailer. According to Dodds, Monroe and Grewal (1991) purchase intention comes into

deliberation when a customer is most likely attempting to purchase some product or service. For

marketers, purchase intention is of vast meaning as their forecast consumer behaviour is highly

20
dependent on this purchase intention of the customers. Predicting consumer behaviour is one of

the most deadly tasks for any business as it keeps on altering under the influences of unknown

and doubtful factors; therefore leading to a purchase intention which is hard to measure under

different conditions (Rizwan et al., 2013). Several studies claimed that purchase intention is a

function of monetary deliberations too, and not only of behaviour. Furthermore, apparent

affordability is an economic variable that can influence behavioural intention (perceived

economic control).

Branding activities are guided by principles which have to be adhered to. The influence of

branding on consumer buying behavior can be assessed from the preferably attribute the

consumer desire. In her study, Rose Mwambusi (2015) argued that the study of consumer

behaviour is rapidly evolving as researchers recognize and implement new techniques and trans-

disciplinary perspectives to understand the nature of purchase and consumption behaviour. This

wider view attempts to study consumer behaviour in the light of rapidly evolving lifestyles,

values, priorities, and social contexts. Various theories on consumer research were not tested

empirically until the middle twentieth century. Generally, branding is a way of clearly

highlighting what makes your product or service different to and more attractive than, your

competitors. Successful branding is about promoting your strengths. Firms need to be sure that

they can always deliver on their promises using these strengths, referred to as brand values.

According to Mudasser et al (2014) purchase intention comes from Brand satisfaction, Brand

trust, Brand attachment, Low price, Past experience and Product knowledge. The outcomes

suggest that all of these factors influence purchase intention to differing degrees. In most cases,

21
support was found for many, all of the straight effects. The consequences obtained from analysis

allow us to verify the build up hypotheses and to understand the relationship between various

variables of acceptance model. The inquiry of this study show that purchase purpose of

consumers is positive assenting like prevailing relationship is experimental with brand

satisfaction, brand trust, brand attachment, low price, product knowledge, and past experience

i.e., the independent variables. Complete analysis shows that the variables which are autonomous

in nature influences purchasing intention. On the other hand the first autonomous variable brand

satisfaction show a significant relationship with purchase intention. Whereas the next

independent variable brand trust shows a significant relationship with dependent variable. Third

variable Brand trust and brand satisfaction show a significant relation with brand attachment.

Moreover, brand satisfaction and brand trust is also key criterion for the customers to purchase

intention. Brand trust and brand satisfaction played important role for consumer purchase

intention. Product knowledge and past experience is also significant role in purchase decision.

The use experience of the brand has a major influence on purchase Intention. Aaker (1991)

expected that later than brand extensions have been passed out by firm, well organized

advertising is applicable for both real (original) products and extensive products. When extended

products and original products brand extensions can almost certainly hold superior market share

and higher advertisement efficiency than other brands.

Various studies originate that low price is an important determinant inspiring demand for forged

products (Dodge et al., 1996; Albers_Miller, 1999, Prendergast et al., 2002; Harvey and Walls,

2003). Customers with greater levels of produce information have better-developed and more

22
intricate schema with well formulate conclusion criteria (Marks and Olson, 1981). While they

procedure in sequence, less cognitive attempt is obligatory and pertinent knowledge well-

organized can be activated routinely and they are capable to process extra knowledge (Alba and

Hutchinson, 1987). Furthermore this study can also be added undertake on the source of social

differences. The limitation of this learning and potential study direction serves up as a ultimate

note for this investigation.

Djumilah et al. (2014) assert that brand image has a positive and significant role on purchase

behavior. So the better the brand image of an Islamic private universities the better the purchase

behavior of students. Many studies have examined the relationship between brand images with

purchasing behaviour. Brand image plays an important role in the formation of perceptions that

became the basis for specific purchase behaviour. Cretu & Brodie (2007) argues that brand

image will have an impact on customer perception on a particular company or organization like

Islamic private universities so that these perceptions will evaluate customer buying behaviour.

As we know that the image of the brand is the customer's perception of the brand as seen from

the existing brand associations in the mind of customers and give meaning to the brand. Well

managed brand image will produce a positive effect by increasing the understanding knowledge

of aspects of customer behavior in making decisions, ensuring that customer orientation on the

things that are symbolic of the service functions.

Cretu & Brodie (2007) found that in the manufacturing industry, the brand image has an

important role in influencing buying behavior. Brand image in the study became predictor of

purchase behavior with the object of research of small and large-scale manufacturing. The results

23
indicate that in fact the image of the brand has a wider influence on customers’ perception of a

manufacturing company. Cretu & Brodie (2007) uses seven indicators to measure brand image

that is familiarity, reputation, superior quality, fashionable and trendy, elegant, useful, natural

and sophisticated. On the other hand, this study expands the research of Cretu & Brodie (2007)

which examines the brand image on purchase behavior in the manufacturing sector with seven

indicators. It's just that this study did not use the seven indicators used by Cretu & Brodie (2007),

but adapted to the object of research which is Islamic private universities so that only uses five

indicators than those used by Cretu & Brodie (2007) to measure brand image. On the other hand,

the results of this study reinforce the study of Navarro et al. (2005) who use the same indicators.

The findings are similar to the results of this research that brand image influence buying

behaviour.

Their studies also expands the research of Bendixen et al. (2004) which explains the concept of

brand image as part of brand equity in marketing in the industrial sector. Subjects of research

conducted by Bendixen et al. (2004) are the decision makers in industrial companies in South

Africa who buy medium voltage electrical equipment. The results show that brand image has the

greatest role in comparison with the price and shipping orders in influencing buying behavior in

the B2B sector.On the other hand, Bravo et al. (2012) which examines the banking sector with

the aim to focus the study on the influence of corporate brand image on customer behavior.

Bravo et al. (2012) collected data from 450 respondents and found that corporate brand image

has a positive and significant influence either directly or indirectly to the behavior of a customer

to use banking services.

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Bravo et al. (2012) conducted research in three cities in the country of Spain with the criteria of

certain banking institutions.This study extends the results of the study of Bravo et al. (2012) who

found that the corporate brand image and a significant positive effect on customer behavior. It's

just that this study examines differences in purchasing behavior in a college student, while Bravo

et al. (2012) examined the behavior of customers in banking services. Indicators used by Bravo

et al. (2012) to measure brand image are also different from the indicators of brand image

variables in this study. Bravo et al. (2012) using the location indicator, CSR, global impression,

services offered, and banking personnel to measure brand image.

Research of Rindell et al. (2011) confirmed these results in this study which found that brand

image through quantitative methods proved to have a positive and significant influence on

purchase behavior. The difference from the study of Rindell et al. (2011) with this study lies in

the industrial sector are examined. Rindell et al. (2011) found that in the case of IKEA, buying

behavior is more influenced by the perceived brand image can enhance the degree of social as a

family can afford to buy expensive furniture. On the other hand, in the case of brand image of

Antilla actually perceived as retail stores at affordable prices. Thus, this study also expands the

research Rindell et al. (2011) because of the different contexts which can produce tbe similarity

the result of research in the aspect of brand image in a positive and significant effect on purchase

behavior. Empirically, this research is consistently extend the results of the study conducted by

Rindell et al. (2011), Bravo et al. (2012), Bendixen et al. (2004), Mudambi (2002), Cretu &

Brodie (2007), Navarro et al. (2005) and Wantara (2008).

25
2.3.2 BACKGROUND OF THE PETROLEUM SECTOR IN NIGERIA

After shifting its exploratory focus to the tertiary area of the Delta, Shell-BP struck oil of

commercial quantity in January 1956, at Oloibiri in the Ogbia District of Ijaw area, at a depth of

12,008 feet (Pearson, 1970). It should be noted that after the Second World War in 1947, Shell

D’Arcy resumed exploration under a new name as the Shell-British Petroleum Company (Shell

BP).

This site, according to Korvenoja (1993) and Allan (1994) was located about 72 kilometres (km)

west of Port-Harcourt in the Niger Delta. Shell-BP’s exploration activities led to more oil

discoveries at Afam, 40km east of Port-Harcourt, and the Bomu and Ebubu (Ogoni) areas of the

Niger Delta (Augustine, 2006; OPEC, 2000; Jaspid, 1995). The discovery was a great success for

both the company and the colonial government. More importantly, it encouraged development of

a petroleum sector, especially by foreign multinational companies that would become major role

players in the upstream oil sector of the Nigerian economy.

Geological survey reports between 1955 and 1959 revealed that a total of 229,032 feet of

exploration drilling and 185,379 feet of appraisal drilling were completed during those years. For

instance, in Oloibiri about 16 wells were completed, of which 11 started production, while others

were left up to the end of 1958 (Colonial Annual Report CAR, 1958-59). To facilitate the

production and exploration of oil in Oloibiri in 1958, Steyn (2009) summits that a network of

pipelines had to be laid between 1956 and 1958, between this region and the oil port at Port-

Harcourt. We argue that Shell BP was prepared for oil exploitation because about 6-10 diameters

welded steel oil pipelines was built and laid across the land from the Umualogu village, Egbema

26
village and Obeakpu village to Port-Harcourt where the refinery was located. Infrastructural

facilities for effective operation and transportation of crude oil were put in place and about 8,500

tons of crude oil was exported to Rotterdam by 8 March 1958, while the Oloibiri oilfields

yielded a daily production average of 5,000 barrels (CAR, 1958-59).

Despite the concession granted to Shell BP, the colonial government succumbed to pressure from

other foreign oil companies vying for oil exploration licenses and concessions in the colony. In

order to achieve that, Shell-BP’s right of monopoly over exploration in western and southern

Nigeria was lifted in 1959. Shell-BP thus relinquished certain area of its concession to the non-

British oil companies for exploration in Nigeria such as Mobil Oil in 1960; Texaco 1961;

Chevron Nigeria 1961; ELF 1962; Agip Oil 1962; American Petroleum 1963. The mineral

ordinance of 1945 was also amended in 1958 which made it possible to grant oil exploration

licences to non-British owned oil companies (NAE, 1290/89).

Annual Report of the Geological Survey Department shows that by 1959/60 Shell-BP had drilled

an additional 37 wildcat wells, resulting in about nine oil wells and three gas discoveries. The

joint venture’s total production was four million barrels in 1960, an increase on its four oil fields

in which the facilities were already installed. Thus, geological survey of land in Nigeria during

the colonial period had laid a solid foundation for further exploration and extraction of oil and

gas resources in the post-independence era.

The Nigerian Government’s Responses to the Discovery of Oil in Oloibiri in the 1960s In order

to enhance production of oil, the federal government had also undertaken practical steps to

27
maximise the oil wealth, adopting an open-door economic policy that permitted oil companies

both local and international an equal access to exploration and production rights in the Ijaw area

(NNPC Act, CAP 320; Segun, 1987). By doing this, the government had laid a strong foundation

for the development of petro-business in the country, and for maximum profits. Consequently,

indigenous oil companies were registered and obtained licenses for oil drilling from the

petroleum ministry, particularly Henry Stephen Delta Oil, Niger Oil Resources, and the Niger

Petroleum Company, which later became significant oil business ventures in the country.

The Shell Petroleum Development Company of Nigeria emerged as the major role-player in the

oil sector, recording total oil business estimated at 49.12 percent of the country’s total. Closely

related were Chevron Nigeria and Mobil Oil, with a total production capacity valued at 15.9

percent and 12.3 percent respectively (SPDC, 2001; World Bank, 1995). Other oil companies,

such as ELF Nigerian Services, Agip Oil Company, Nigus Petroleum and Dubril Oil Company

accounted for about 22.6 percent of production. The high percentage recorded by Shell-BP

points to the monopoly of rights enjoyed by the company during the colonial period, when it had

exclusive rights for oil exploration in the whole country.

28
 REFERENCES

Awiwu, J, (1997). ‘Nigeria and the World of Oil’ In Victor, EE, ed, Nigerian Petroleum

Business: A Handbook, Lagos: Advance Communications, pp.19-38.

BP (British Petroleum) Archive, 53393/SIPC (Shell International Petroleum Company), London,

Keller, K. L. (1993, January). Conceptualizing, Measuring and Managing Customer-Based

Brand Equity. Journal of Marketing, 57(1), 1-22.

http://dx.doi.org/10.2307/1252054

Cannon, J. P., Perreault, W. D., & McCarthy, E. J. (2009). Pemasaran Dasar – Pendekatan

Manajemen Global. Jakarta: Salemba Empat.

Aaker, J. L. (1997). Dimensions of Brand Personality. Journal of Marketing Research,

34(3),347-356. http://dx.doi.org/10.2307/3151897

Blackwell, R. D, Miniard, P. W &Engel. J. F (2006) consumer behavior 10thedition,Thomson

South -Western.

Hawkins, D. I., Best, R. J., & Coney, K. A. (2004). Consumer Behavior – Building Marketing

Strategy. New York: McGraw-Hill.

Dodds, B.K., Monroe, K.B. and Grewal, D. (1991), “Effect of price, brands, and store

information on buyers‟ product evaluation”, Journal of Marketing Research, Vol.

28, August, pp. 307-19.

Schiffman, L. G., & Kanuk, L. L. (2010). Consumer Behavior. New Jersey: Pearson Prentice

Hall.

Assael, H. (2004). Consumer Behavior - A Strategic Approarch. Boston: Houghton Mifflin.

Kahle, L.R. & Kim, C.H. (2006). Creating images and psychology of marketing communication.

New Jersey: Lawrence Erlbaum Associates, Inc., Publishers.

29
Chaudhuri, A., & Holbrook, M. B. (2001). The Chain of Effects from Brand Trust and Brand

Affect to Brand Performance: the Role of Brand Loyalty. Journal of Marketing,

65(April), 81-93. http://dx.doi.org/10.1509/jmkg.65.2.81.18255.

Randall, G. (1997). Branding marketing: marketing in action series. London: Kogan Page

Limited.

Solomon, R.M., G., Askegaard,S. and Hogg, M.K (2010) consumer behavior ;a European

perspective 4th edition prentice Hall, Harlow , England.

Srivastava, R. K., Fahey, L., & Christensen, H. K. (2001). The Resource-Based View and

Marketing: The Role of Market-Based Assets in Gaining Competitive Advantage.

Journal of Management, 27, 777-802.

Kapferer, J.N. (2005). The new strategic brand management: creating and sustaining brand

equity long term. 3rd Edition. London: Kogan Page Limited.

Pujadi, B. (2010). Studi Tentang Pengaruh Citra Merek Terhadap Minat Beli Melaui Sikap

Terhadap Merek. Semarang: Program Magister Manajemen Universitas

Diponegoro.

Kotler, P. & Keller K. L. (2006), Marketing Management .12th edition. Prentice Hall.

Davidson, W.R and DJ Sweeney and RS Stempfi (2000): Retailing Management, Singapore,

John Willy and Sons Ltd.

30
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 PREAMBLE

In this chapter, our focus will be to explain the methods employed in the gathering of data for

this research. Patrick J. (1992), states that there are many methods and instruments of research

information gathering with each playing a very relevant, and accurate role. These methods

include but not limited to:

 Field observance
 Survey
 Questionnaire administration
 Reference to organizational records
 Direct supervision etc.

3.2 RESEARCH DESIGN

The research is modeled on a descriptive survey design. It is concerned with Brand Image and

The Customer Intention to Purchase Petroleum Products using selected Petrol Stations in Lagos

as case study. According to Cooper and Emory (1995), a descriptive survey is used to learn the,

what, who, where and how of a phenomenon which is the focus of the proposed study.

The main instrument chosen for the research is the questionnaire. With this instrument, the study

tried to ascertain if brand image has any effect on the customers’ buying behaviour of petroleum

products. Can there be any relationship between brand image and consumers’ purchasing

behaviour?

31
3.3 POPULATION OF THE STUDY

A population is a complete set of items that share at least one property in common that is the

subject of statistical analysis. The population consists of customers of the selected filling stations

that reside in Lagos State.

3.4 SAMPLING, PROCEDURE AND SAMPLE SIZE

The sampling technique employed in this study is a convenient sampling procedure. This

procedure is called this name because it affords the researcher the opportunity to pick his

respondents from people those he accidentally come across from target population which makes

it to be convenient to him. Using this sampling technique respondents were chosen accidentally

from the selected 5 filling stations chosen for this survey.

Sample size chosen for carrying out this study is 150 consumers of petroleum products in the

selected filling stations in Lagos. The sample size contains of 30 respondents from each of the 5

selected filling stations.

3.5 DATA COLLECTION INSTRUMENT AND VALIDATION

The study used primary data which was collected through a structured questionnaire to obtain

information about how brand image of a filling station motivate them towards buying from such

station. Primary data is a first time data which is original and collected for a certain study or

32
purpose (Kothari, 2004). It plays an important role in an evaluation by providing information

useful to understanding the processes behind observed results and assessing changes in people’s

perceptions (Churchill & Lacobucci, 2005). The questionnaire administered in this research is

divided into two parts. The first part of the questionnaire contained questions on the

demographic profile of the respondents. The second part of the questionnaire contained questions

on the Brand Image and The Customer Intention to Purchase Petroleum Products form selected

filling stations. The data collected will be qualitative and quantitative in nature. The customers

were selected using an accident sampling method in the 5 selected filling stations. The

questionnaires were administered while the consumers were being served by the station

attendant(s).

The questionnaire is divided into two sections A and B. Section A contains questions relating to

Bio-data of the respondents while section B contains questions that will answer the research

questions and validate the hypothesis.

3.6 METHOD OF DATA ANALYSIS

This research used table to analysed the data gathered while conclusion were drawn according to

a structure that groups questions related to particular hypotheses together. These hypotheses are

then tested using the correlation and regression test to treat the data statistically. This is a two in

one set that test relationship between variables. While correlation allows a researcher to know

the relationship between two variables, it does not allow him to estimate or predict the score on

the predicted variable by knowing the score on the predictor variable i.e. he cannot readily

33
predict the score on Y (the predicted variable) by knowing the score on X (the predictor

variable). Therefore the statistical method that allows this prediction is regression analysis.

(Fagbohungbe, 2002)

3.7 LIMITATIONS OF THE STUDY

The study is limited to Brand Image and the Customer Intention to Purchase Petroleum Products

using selected filling stations in Lagos. As such, the survey and our population to did not go

outside the purview of both.

34
 REFERENCES

Cooper, Donald R.; Emory, C. William Business Research Methods, 5th Edition(ebook)

Version.

Churchill, L. (1991). Research Design: Qualitative, Quantitative, and Mixed Methods

Approaches, ISBN, USA.

Fagbohungbe B. O. (2002). Research Methods for Tertiary Institutions and Professional Bodies.
Kotleb Publishers, Lagos.

35
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 PREAMBLE

This chapter presented and analysed our data as collected through the questionnaire. The data

were processed in two main stages. The first stage of data processing involved the use of tables

of frequency distributions and percentages while the second method of data processing involves

the use of correlation analysis to test the hypotheses of study. The questionnaire was distributed

to fifty respondents who are met accidentally from the five selected petrol stations in Lagos. Data

are presented in using table with interpretation and discussion on each table following it.

4.2 PRESENTATION AND ANALYSIS OF DATA ACCORDING TO RESEARCH

QUESTIONS

Table 1: Biodata of Respondents

Respondents Biodata

BIODATA

Sex

Male 37 74

Female 13 26

Total 50 100

36
Age

21-30 12 24

31-40 24 48

41 and above 14 28

Total 50 100

Education

WASC 13 26

OND 19 38

B.Sc/HND 15 30

Master 3 6

PhD - -

Total 50 100

Marital Status

Married 21 42

Single 19 58

Others - -

Total 50 100
37
Table 1 above shows that out of 50 respondents who filled the questionnaire, 13 were female

while 37 where male. Thus the female respondents accounted for 26% of the responses while

male respondents accounted for 74% of the responses.

The table further shows that the ages were evenly spread with 21-30 being 24% of respondents,

31-40 having 48% and 41 above being 28%.

Educational achievement was also well spread with the least education qualification being

WASC which recorded 26%.OND top the part of the table with 38%.The combination of B.Sc

and HND have 30%. Master recorded 6% while PhD has no of entry.

The marital status shows that 42% of the respondents were married while 58% were. No

respondent fill the “other” category of the marital status.

Research Question 1

What are the customers’ perceptions of brand image in selected filling stations in Lagos?

Table 2: Customers’ perceptions of brand image

Customers’ Perception

Category of Frequency Percentage Cummulative

Response Distribution Percentage

38
 Strongly Agree 23 46 46

Agree 11 22 68

Neutral 8 16 84

Disagree 5 10 94

Strongly Disagree 3 6 100

Total 50 100

Table 2 shows that the customers’ perceptions for the selected petrol station are positive i.e most

of the customer have an attachment with the brand image which the station represents. 46% of

the population “Strongly Agree” believes that the brand image is outstanding which gives them

good impression of it and the services they render. “Agree” category also has a substantial record

making it the second highest respond with 22%. The combine responses for “Disagree and

Strongly Disagree” which is below either of “Strongly Agree” or “Agree” shows the positiveness

of the customers on brand image.

Research Question 2

What are the purchase intentions of customers of selected filling stations in Lagos?

Table 3: Purchase Intention

Purchase Intention

Category of Frequency Percentage Cummulative

Response Distribution Percentage

Strongly Agree 12 24 24
39
 Agree 22 44 68

Neutral 12 24 92

Disagree 3 6 98

Strongly Disagree 1 2 100

Total 50 100

Respondents’ responses show that purchase intention varies. However, Strongly Disagree has the

lowest response with just 2% of the population. This show that for whatever reason the

consumers have chosen the brand they are purchasing petroleum products from they still want to

keep them and continue to buy from the brand. “Strongly Agree” recorded 12 responses (24%),

“Agree” has the highest with 22 responses (44%), Neutral also had 12 responses (24%), Disagree

recorded 3 responses (6%).

4.3 TEST OF HYPOTHESIS

Research Question 3

What is the relationship between customer perception of brand image and purchase intention of

petroleum products?

Hypothesis 1

Ho1: There is no significant relationship between customer perception of brand image and

purchase intention of petroleum products.

40
Hi1: There is significant relationship between customer perception of brand image and

purchase intention of petroleum products

Table 4: Correlation between customer perception of brand image and purchase intention

of petroleum products

Correlations

There is no There is

relationship relationship

between between

customer customer

perception of perception of

brand image brand image

and purchase and purchase

intention of intention of

petroleum petroleum

products products

Spearman's rho There is no relationship Correlation

1.000 .915**
between customer Coefficient

perception of brand Sig. (2-tailed) . .000

41
 N 50 50
image and purchase

intention of petroleum
There is relationship Correlation
.915** 1.000
between customer Coefficient

perception of brand Sig. (2-tailed) .000 .

image and purchase

intention of petroleum N 50 50

products

**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation: From the Table 4 above, there is a highly positive correlation between customer

perception of brand image and purchase intention of petroleum products with correlation

coefficient of 0.915. Therefore the null hypothesis (Ho1) is rejected and the alternative (Hi1) is

accepted.

Research Question 4

How does brand image influence purchasing behaviour of customers of petroleum products?

Hypothesis 2

Ho2: There no significant influence of brand image on purchasing behaviour of customers of

petroleum products

42
Hi2: There is significant influence of brand image on purchasing behaviour of customers of

petroleum products

Table 4 also showed that perception on brand image has a significant influence (p-value 0.05) on

customers’ intention to purchase petroleum products. Therefore the null hypothesis (Ho2) is

rejected and the alternative (Hi2) is accepted.

4.4 DISCUSSION OF FINDINGS

Hypothesis one was formulated in order to examine if there is a significant relationship between

customers’ perceptions of perception of brand image and purchase intention of petroleum

products. The findings show that there is a very significant and positive relationship between the

two variables. This suggests that any change in perception of brand image will also bring about a

change in customers’ purchase intention of petroleum products.

Hypothesis two was formulated in order to ascertain if there is a significant influence of brand

image on purchasing behaviour of customers of petroleum products. The findings show that

customers’ perception on brand image has a strong influence on customers’ purchase intention of

petroleum products.

43
 REFERENCES

Fagbohungbe B. O. (2002). Research Methods for Tertiary Institutions and Professional Bodies.

Kotleb Publishers, Lagos.

Mojekwu J. N (2012). Business Statistic with Solved Examples (Third Edition),Easy Print

Publication, Lagos.

IBM SPSS Statistics, (version 20.0)

44
 CHAPTER FIVE

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY

This chapter summarizes the entire research effort. It gives a brief summary of each of the

chapters in the study. As such, it will start by looking at the contribution of each chapter to the

success of this research starting with chapter one.

The first chapter of the research introduced us to entire study. It started by giving us the

background to the study- the importance of brand image in the competitive global market. It also

discussed the problem associated with the study that is, why we have decided to conduct the

research among other things. The chapter also acquainted us with the research problems, and the

hypotheses from which our judgement in the entire work was derived. Finally, we also looked at

some terms that are related to the study.

Chapter two was dedicated to literature review. This chapter was broadly divided into two

headings viz the theoretical frame work and the empirical review of previous works in the area of

the study. Relevant theories and model on consumer behaviours were reviewed. The chapter also

took a cursory review of works that have previously done on brand image, consumers’

behaviours and the petroleum industry in Nigeria. A brief historical background of the petroleum

industry in Nigeria rounded off the chapter.

45
In chapter three, we were concerned with the methodology adopted in carrying out the research.

Our focus was on concepts like research design, population of the study, sampling procedure and

sample size, data collection instrument and validation and method of data analysis.

Chapter four is the hub of the entire study. It was all about data presentation and analysis. The

data collected for the purpose of this research through the questionnaires were presented in a

tabular form and then analysed. The analysis of our data was done statistically using a table. Data

(in the table) were interpreted to show their relationship and answer the research questions. Also

relevant data were used to test the hypotheses using the Spearman’s Ranking Correlation.

Finally, the chapter discussed the findings of the researcher.

Chapter five summarized the entire research work. The chapter also gave a conclusion on the

study based on the findings the researcher made in chapter four. The entire work in the study

ended with recommendation which was also based on the conclusion of the research effort.

5.2 CONCLUSIONS

Generally, it has been well argued that the study of consumer behaviour like this is rapidly

evolving as researchers recognize and implement new techniques perspectives to understand the

nature of purchase and consumption behaviour.

The conclusion emerged out of this study are presented objective wise. Based on the findings of

the four research questions that is, does brand image influence purchasing behaviour of

46
customers of petroleum products? Does the concept of consumer behaviour have effect on the

purchasing intention of customers of petroleum products? Does brand image have effect on

customers’ choice of filling station? Do organisations need to create a strong brand image in

order to survive in the competitive market? It can be concluded that:

When answering the question, it was found that, brand image premium price influences

customers’ intention to purchase petroleum products. Some customers have brand affinity based

on many factors which could be psychological, social or economical. Many a time, customers

will not purchase petroleum products he/she is in need of even at the closest petrol station

because of their bais or judgement about that station. In this wise it is important for firms to

create a strong positive image. An error in the image presented to the public by a brand can

force such a brand out of a competitive business. And to sustain brand loyalty, petrol stations

need to do away from activities that may create a bad image for them as well as engage in result

driven brand awareness.

Generally, branding is a way of clearly highlighting what makes your product or service different

to and more attractive than, your competitors. Successful branding is about promoting your

strengths. Firms need to be sure that they can always deliver on their promises using these

strengths, referred to as brand values.

5.3 RECOMMENDATIONS

Modern trends in marketing has shown that in the recent years have has created competitively

with a high level of innovation improving non-price completion factors such as services and

47
quality, for this reason there should be careful attention to the various target customers of petrol

station. As shown through the survey, the population of customers at every petrol station varies

in social status and also in psychological composition so management of petrol station should

train their staff on how to deal with every customer having in mind that experience recorded with

one outlet of the same brand can create send a negative signal to the public about the brand and

thus affect its brand image.

48
 BIBLIOGRAPHY

Aaker, J. L. (1997). Dimensions of Brand Personality. Journal of Marketing Research,

34(3),347-356. http://dx.doi.org/10.2307/3151897

Assael, H. (2004). Consumer Behavior - A Strategic Approarch. Boston: Houghton Mifflin.

Awiwu, J, (1997). ‘Nigeria and the World of Oil’ In Victor, EE, ed, Nigerian Petroleum

Business: A Handbook, Lagos: Advance Communications, pp.19-38.

Blackwell, R. D, Miniard, P. W &Engel. J. F (2006) consumer behavior 10thedition,Thomson

South -Western.

BP (British Petroleum) Archive, 53393/SIPC (Shell International Petroleum Company), London,

Cannon, J. P., Perreault, W. D., & McCarthy, E. J. (2009). Pemasaran Dasar – Pendekatan

Manajemen Global. Jakarta: Salemba Empat.

Chaudhuri, A., & Holbrook, M. B. (2001). The Chain of Effects from Brand Trust and Brand

Affect to Brand Performance: the Role of Brand Loyalty. Journal of Marketing,

65(April), 81-93. http://dx.doi.org/10.1509/jmkg.65.2.81.18255.

Churchill, L. (1991). Research Design: Qualitative, Quantitative, and Mixed Methods

Approaches, ISBN, USA.

Cooper, Donald R.; Emory, C. William Business Research Methods, 5th Edition(ebook)

Version.

Davidson, W.R and DJ Sweeney and RS Stempfi (2000): Retailing Management, Singapore,

John Willy and Sons Ltd.

Dodds, B.K., Monroe, K.B. and Grewal, D. (1991), “Effect of price, brands, and store

information on buyers‟ product evaluation”, Journal of Marketing Research, Vol.

28, August, pp. 307-19.

49
Fagbohungbe B. O. (2002). Research Methods for Tertiary Institutions and Professional Bodies.
Kotleb Publishers, Lagos.

Hawkins, D. I., Best, R. J., & Coney, K. A. (2004). Consumer Behavior – Building Marketing

Strategy. New York: McGraw-Hill.

IBM SPSS Statistics, (version 21.0)

Kahle, L.R. & Kim, C.H. (2006). Creating images and psychology of marketing communication.

New Jersey: Lawrence Erlbaum Associates, Inc., Publishers.

Kakunu, Jacob (2012). Determinants of Consumer Preference in Choice of Petroleum Service

Outlets in Nairobi. Online.

Kapferer, J.N. (2005). The new strategic brand management: creating and sustaining brand

equity long term. 3rd Edition. London: Kogan Page Limited.

Keller, K. L. (1993, January). Conceptualizing, Measuring and Managing Customer-Based

Brand Equity. Journal of Marketing, 57(1), 1-22.

http://dx.doi.org/10.2307/1252054

Kotler, P. & Keller K. L. (2006), Marketing Management .12th edition. Prentice Hall.

Mojekwu J. N (2012). Business Statistic with Solved Examples (Third Edition),Easy Print

Publication, Lagos.

Musyoka, Julius (2012). Factors that Influence Customers’ Selection of Petroleum Station in

Kano. Master of Business Administration thesis submitted to Bayero University.

Pujadi, B. (2010). Studi Tentang Pengaruh Citra Merek Terhadap Minat Beli Melaui Sikap

Terhadap Merek. Semarang: Program Magister Manajemen Universitas

Diponegoro.

50
Randall, G. (1997). Branding marketing: marketing in action series. London: Kogan Page

Limited.

Schiffman, L. G., & Kanuk, L. L. (2010). Consumer Behavior. New Jersey: Pearson Prentice

Hall.

Solomon, R.M., G., Askegaard, S. and Hogg, M.K (2010) consumer behavior ;a European

perspective 4th edition prentice Hall, Harlow , England.

Srivastava, R. K., Fahey, L., & Christensen, H. K. (2001). The Resource-Based View and

Marketing: The Role of Market-Based Assets in Gaining Competitive Advantage.

Journal of Management, 27, 777-802.

51
 QUESTIONAIRE
Dear Respondents,
My name is Agwi Christian. I am a final year student of the department of Business
Administration of the Distant Learning Institute of the University of Lagos.

I am conducting a study on Brand Image and The Customer Intention to Purchase Petroleum
Products: A Study of Selected Petrol Stations. Your kind gesture would be greatly appreciated in
completing the questionnaire below; your responses will aid my study and be treated as
confidential.

SECTION A
Please tick the most appropriate answer [ ]
1 Age:
(i) 21-30 [ ]
(ii) 31-40 [ ]
(iii) 41 and above [ ]

2. Sex:
(i) Male [ ]
(ii) Female [ ]

3. Marital Status:
(i) Single [ ]
(ii) Married [ ]
(iii) Others [ ]

4. Nationality :
(i) Nigerian [ ]
(ii) Foreigner [ ]

52
5. Educational Qualification:
(i) WASC [ ]
(ii) OND [ ]
(iii) BSC/HND [ ]
(iv) MSC [ ]
(v) PhD [ ]

6. What do you do to earn a living?

(i) Permanently employed [ ]
(ii) Casual employee [ ]
(iii) Self- employed [ ]
(iv) Not employed [ ]

7. What purposes do you use petroleum products for?

(i) Vehicle [ ]
(ii) Generator [ ]
(iii) Vehicle and Generator [ ]
(iv) Others [ ]

8. Which petrol station brand do you prefer?

(i) Oando [ ]
(ii) Total [ ]
(iii) Ascon [ ]
(iv) MRS [ ]
(v) Mobil [ ]
(vi)Others [ ]

53
 SECTION B
Please evaluate your perception on brand of this petrol station according to following scale. (1-
Strongly disagree, 2-Disagree, 3-Neutral, 4-Agree, 5-Strongly agree)

Perception of Brand Image

9. Symbol of the brand is recognizable to me
(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]
(iv) Disagree [ ]
(v) Strong Disagree [ ]

10. This brand comes to my mind at first when whenever I have need for petroleum product
(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]
(iv) Disagree [ ]
(v) Strong Disagree [ ]

11. I like the brand very much

(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]
(iv) Disagree [ ]
(v) Strong Disagree [ ]

12. I am satisfied with the quality of services I receive from the brand
(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]

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 (iv) Disagree [ ]
(v) Strong Disagree [ ]

13. All products quality of this brand are good

(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]
(iv) Disagree [ ]
(v) Strong Disagree [ ]

14. The brand image is outstanding and gives me a good impression

(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]
(iv) Disagree [ ]
(v) Strong Disagree [ ]

15. The values of this brand give me confidence to its products

(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]
(iv) Disagree [ ]
(v) Strong Disagree [ ]

Intention to purchase
16. I have a clear understanding on this brand
(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]

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 (iv) Disagree [ ]
(v) Strong Disagree [ ]

17. I will always purchase petroleum products from this brand

(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]
(iv) Disagree [ ]
(v) Strong Disagree [ ]

18. I intend to purchase petroleum products from this brand in the future
(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]
(iv) Disagree [ ]
(v) Strong Disagree [ ]

19. I will purchase petroleum product from other brands in the future
(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]
(iv) Disagree [ ]
(v) Strong Disagree [ ]

20. I will purchase petroleum products irrespective of the brand name

(i) Strong Agree [ ]
(ii) Agree [ ]
(iii) Neutral [ ]
(iv) Disagree [ ]
(v) Strong Disagree [ ]

56
 List of Tables

Table 1: Biodata of Respondents 36

Table 2: Customers’ perceptions of brand image 38

Table 3: Purchase Intention 39

Table 4: Correlation between customer perception of brand image and purchase

intention of petroleum products 41

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