• Journal of Distribution Science
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• v.16 no.4
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• pp.83-88
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• 2018

Purpose - This study conducts an empirical analysis on gasoline pricing of Korean retail gas stations focusing on spatial effects. Unlike previous studies, the study uses an official land price for a proxy of the importance of location, and also allows the spatial effects from other competing gas stations as well. Research design, data, and methodology - In collection of data, we obtain more abundant data than those of previous studies. The gasoline prices used in the study are 909,084 observations as daily data from January 1 to July 31 of the year 2016. A proxy for the land price is collected by linking official public land price data with address information on each gas station. For the estimation, the study employs the Panel Spatial Dubin Model to make the best use of the collected location information. Results - As expected, spatial properties of gas stations have significant effects on the gasoline price. As the price per square meter increases by 100 thousands won, the price of gasoline rises 9 won per liter. Among other characteristics, the price increases by 16 won per liter if the station has a convenience store, and about 5 won if it has a car wash service. Gasoline price in Singapore accounted for 26% of variations in domestic gasoline prices. SK Energy and GS Caltex are the top brands in terms of price. The study also finds prices and other important properties of competing gas stations have significant effects on others' prices. Prices of competing gas station have a positive relationship with those of others. If a competing gas station raises the price, the gas station also raises the price, and lowering the price lower the price. Among brands, GS Caltex has the greatest downward pressure on nearby gas stations. Conclusions - The study confirms that location value of gas stations affect their gasoline prices, and the prices of the competing gas stations also have a significant effects on their prices. It suggests that the prices in the competing retail areas tend to be synchronized with each other.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.553-581
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• 2014

This paper analyzes competition among service stations in the Korean gasoline market. We consider spatial differentiation as a source of product differentiation as well as the characteristics of the stations and vertical contracts between refiners and retailers as factors causing changes in equilibrium prices in the Korean gasoline retail market. The effect of the government's price disclosure policy on the retail market competition is also analyzed. Moran's I test indicates that the prices of neighboring gas stations are spatially correlated in the market. It is also found that gasoline prices for vertically integrated stations are much lower than those for independent stations. In addition, unbranded stations charge lower prices than branded stations but also induce branded stations to price more competitively. Meanwhile, the government's price disclosure policy did intensify price competition in the retail gasoline market. It is inferred that the price disclosure policy contributed to retailers gaining more bargain power in price negotiation with refiners, causing an eventual increase in retail prices.

• Korean Journal of Human Ecology
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• v.21 no.2
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• pp.241-256
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• 2012

Gas station consumers have become increasingly conscious of expanding choices and service options available at retail outlets. The purpose of this study was to determine key factors in customer choice of gas / service stations. This study seeks to identify key the relationship between socio-demographical variables and consumer choice, and consumer satisfaction and loyalty associated with gas / service station usage. The research instrument comprised of a questionnaire in the form of an on-line survey that was administered during November, 2010. A Total of 1,000 questionnaires were used in the final analysis. The collected data were treated with SPSS Windows 18.0 and analyzed in for frequency, percentage, mean, standard deviation, pearson's correlation analysis, and multiple regression analysis. The results of were as following: First, there was a strong positive relationship between involvement, satisfaction, loyalty of gas station service. Second, satisfaction was significantly affected by involvement, the frequency of gasoline purchases, the information route and customer's occupation. Third, loyalty was significantly affected by consumer satisfaction, involvement, frequency of gasoline purchases, information route and customer's occupation.