Friday September 3, 2010

Fuel Rewards Attract Shoppers

New York — Reward programs are growing in popularity as slowly rising fuel prices continue to impact how consumers shop and buy, according to a study.

A survey of 52,000 U.S. households by The Nielsen Co. found consumers are choosing gas locations because they offer incentives tied to spending at particular stores, with 24 percent going to grocery, 19 percent to c-stores, 14 percent to clubs and seven percent to mass merchandisers that provide such discount programs.

Todd Hale, senior vice-president of consumer and shopper insights for Nielsen, says: “Consumer packaged goods retailers continue to demonstrate good marketing and merchandising tactics by linking in-store spending to gas savings at their pumping sites or with participating petroleum companies.”

Though fuel costs have declined from 2008 levels, fill-ups are still a significant expense, which presents retailers and manufacturers with an opportunity to offer savings solutions, Hale says.

The survey found 63 percent of consumers offset high gas prices by combining errands, while 29 percent of shoppers said they have reduced spending to a small degree. Thirty-eight percent of participants said they use coupons as a money-saving strategy.