Anonymous
Anonymous asked in Social ScienceEconomics · 7 years ago

Why would someone buy gas at a station with a 14-cent price difference from the one across the street?

At an intersection near my home, there are 2 gas stations -- each on opposite corners. One is selling gas for $3.55, and the one across the street $3.69. Both are cash prices; credit card prices are 9 cents higher per gallon.

I saw cars at both stations when I passed by. Not as many at the higher one, but why would someone pay $3.69 when they could go across the street and pay $3.55?

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  • Anonymous
    7 years ago
    Favorite Answer

    That is the first rule in economics. Consumer does not depend on only price.

  • 7 years ago

    It could be that one brand/station is more trustworthy or well known and can command a higher price per gallon. Also the fuel quality may be better. People also might be too lazy to cross the street if they are already headed in one direction.

    There also may be other factors, such as the higher priced station having a better coffee shop associated, or a better variety store, maybe a car wash that could possibly give discounts with a gas purchase.

    Also there could be a rewards points system with the higher priced station that could incentivize certain buyers.

  • 7 years ago

    The hassle of driving across the street is not worth 14 cents.

    Fourteen cents per gallon is negligible compared to the buyer's wealth/income.

  • Anonymous
    7 years ago

    for some people, a few pennies are not worth doing a left turn twice (getting into and out of the station)

    others believe that "their" station has gas of higher quality.

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  • Anonymous
    7 years ago

    brand loyalty and not wanting to cross the street

    may not care about a few pennies per gallon

  • 7 years ago

    people might think the expensive gas is better quality

  • 7 years ago

    Loyalty or convenience.

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