How Price Signs Drive Consumer Behavior
By Wolfgang Manz, President & CEO, PWM Electronic Price Signs
April 2017
How much does the typical American driver care about gas prices? How far will he go to get the cheapest gas around? The psychology behind gas shopping has been well studied. Drivers care about saving at the pump. It’s a behavior savvy convenience store proprietors use to their advantage.
According to a recent study by Market Force1, fuel price tops the list of factors that determine where drivers fill up the tank (79%). Driving out of the way to a station that is known for posting the most competitive prices is a common behavior as well. More than six out of ten consumers surveyed by the National Association of Convenience Stores (NACS)2 confessed that they would be willing to drive five minutes out of the way for five cents per gallon in savings. A shocking 38% said they would drive twice that far—even though the savings wouldn’t be offset by the amount of gas they burned on that trip. Apparently, it’s the idea of getting the best deal rather than the reality of saving money that fuels this quest for cheap gas prices.
60% of drivers choose a station based on the price
While about 10% of drivers use apps like GasBuddy to track down the lowest prices around, the majority of consumers are keeping their eyes peeled for roadside signage. About 60% of drivers choose a gas station based on the price posted on the sign (and that number goes up to 65% for those who refuel during the morning rush).
Armed with this insight into motorists’ fuel buying habits, gas station owners can take steps to ensure that their pricing stands out from the competition. In addition to ensuring their prices are posted correctly on gas apps, it’s even more critical to keep outdoor signage visible and up to date. This may involve changing the price multiple times per day based on bulk gas prices, the latest news reports, and what the competition down the street is doing.
Electronic SMD Signs offer competitive advantage
Digital SMD-LED signage is the technology of choice for gas stations seeking to stand out from the competition. SMD-LED displays have a number of advantages over older technologies. Electronic sign prices can be changed immediately without an employee having to leave their post and multiple gas stations can be updated from a central location. SMD digits are designed for especially high visibility from the road by day and night as well as superior durability. Finally, drivers know that digital signs are likely to be updated on a regular basis to offer up-to-the-minute pricing. Since gas buying behavior is all about the perception of getting the best deal, it pays to give the right impression.
ABOUT PWM
For more than 35 years, PWM has been at the forefront of the electronic price sign industry, working exclusively with convenience store owners. As a privately owned global player, PWM has led the industry in the use of SMD technology since 2006. To ensure it meets the highest quality standards, all of PWM’s sign components are produced at its headquarters in Germany. With a variety of sign types and designs to choose from, PWM backs their signs with the industry’s best warranties and customer service. www.pwm-usa.com
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©2017 Royal Buying Group