A blog for my AP Economics class to discuss economics-related current issues and news.
Wednesday, September 20, 2006
Chevron vs. Shell
7 comments:
Anonymous
said...
first i wanted to say that that was pretty sweet and yes im pretty sure our whole class will be downloading it onto their ipods soon! in answer to your question i would have to say that maybe people dont notice. though the gas stations are pretty close together, some people are in so much of a rush they dont even look at how much gas is they just go ahead and fill up when they need gas. perhaps they dont have enough time to shop around or dont feel like it is worth their time. or maybe people, like myself, have loyalty to one main gas station. i have a particular gas station that i always go to without really even looking at the price, so maybe other people do the same, or maybe im the only person that does that. i dunno it still seems weird to me that with a thirty cent difference people will still by the more expensive gas. mr arjona, i think you need to go ask the owner what he is thinking because clearly this is not rational... field trip maybe? -natalie halpern
The location of the Chevron is closer to the interstate. If someone gets off the interstate to get gas, they will stop at the closest gas station assuming that others will be comparable in price. Both gases contain an octane level of 87 so most people should choose the cheaper one. I see in the mornings that the Shell is full of lawn care professionals who are there to fill up their equipment for that day’s work, while the Chevron has only one or two cars filling up. The Chevron has been in that location for a while so they might have figured out that this is the best way for them to maximize their profits.
First of all i can't believe how high tech our econ class is, first the smartboard, now blogs that I dont even have to read, I don't know what to expect next. But I really don't see how the Chevrons expect to make any profit at all. If memeory serves all Chevrons that I have seen in Cobb have been significantly higher than surrounding other stations. Chevron's costs of making gasoline must be much higher than everyone else's to account for such a gap. Is it the "techron" or the not-so-funny car commercials, I don't know. With oil prices falling nearly $5/barrel since school has started and gas nearly $.80/gallon because of diminishing summer demand Chevron is having trouble with keeping up with QT and Shell. I'm surprised Chevron hasn't tanked already. - Chip B
i would like to say that i actually have already downloaded the phoned-in post on my ipod, and its already reached my top 25 played list. anyways, since the chevron is on the corner of the loop and 41, and the shell is merely a quarter of the mile down the road, wouldn't it make sense that the chevron would get attract most of the people who are turning from 41 onto the loop, and their path to their destination does not continue down 41, so they will never get a chance to see how much cheaper the shell gas prices are. it is also possible that the chevron will attract customers who are loyal to the chevron, such as customers who have a chevron gas card, and find it more rational for them to fill up at the chevron, maybe if they didn't have anything else to pay with. the bottom line is, if i am driving down 41 and plan to turn on the loop, i won't even get a chance to see the shell's gas prices, so i will most likely just fill up at the chevron when in need of gas. if i was aware of the price difference, i would most definitely make the journey down the the shell station. peace out -tanner
First off, i, like some of my fellow peers, am blown away by this amazing high tech class. this audio post is very sweet. so yes, onto the question about the gas stations...how does chevron get money? well like tanner and brian have previously said, the pure convienience of where the store is located is key. Let's say my little gas signal comes on in my car while exiting the north loop, getting onto 41 saying i have 10 miles until i have to fill up. well it's my lucky day,as i exit of the loop, Chevron is right there! so without even giving that poor Shell a chance down the road, even though i know full well that my tank will last long enough to get down the road and save 30 cents/gallon, i fill up at Chevron. Consumers might not even know about the Shell down the road because of the prime location of the busy intersection for the Chevron.
Another reason that the Chevron is making a profit may not necessarily be from their gas. perhaps their gas is more expensive than shells, but their food and drinks inside are unbelieveably cheap. They could do a better job at advertising these cheap products as well, such as big signs saying a deal they're having on water or something. I know while doing alot of work this summer outside, the company i worked for knew the gas station with the best prices for gallons of water and snacks. We became faithful to that gas station because of their cheap food, and periodically filled up there even though it was a little more expensive than another gas staiong down the road. so yes, i can understand why the chevron is still doing well.
7 comments:
first i wanted to say that that was pretty sweet and yes im pretty sure our whole class will be downloading it onto their ipods soon! in answer to your question i would have to say that maybe people dont notice. though the gas stations are pretty close together, some people are in so much of a rush they dont even look at how much gas is they just go ahead and fill up when they need gas. perhaps they dont have enough time to shop around or dont feel like it is worth their time. or maybe people, like myself, have loyalty to one main gas station. i have a particular gas station that i always go to without really even looking at the price, so maybe other people do the same, or maybe im the only person that does that. i dunno it still seems weird to me that with a thirty cent difference people will still by the more expensive gas. mr arjona, i think you need to go ask the owner what he is thinking because clearly this is not rational... field trip maybe?
-natalie halpern
The location of the Chevron is closer to the interstate. If someone gets off the interstate to get gas, they will stop at the closest gas station assuming that others will be comparable in price. Both gases contain an octane level of 87 so most people should choose the cheaper one. I see in the mornings that the Shell is full of lawn care professionals who are there to fill up their equipment for that day’s work, while the Chevron has only one or two cars filling up. The Chevron has been in that location for a while so they might have figured out that this is the best way for them to maximize their profits.
-Brian Meier
First of all i can't believe how high tech our econ class is, first the smartboard, now blogs that I dont even have to read, I don't know what to expect next. But I really don't see how the Chevrons expect to make any profit at all. If memeory serves all Chevrons that I have seen in Cobb have been significantly higher than surrounding other stations. Chevron's costs of making gasoline must be much higher than everyone else's to account for such a gap. Is it the "techron" or the not-so-funny car commercials, I don't know. With oil prices falling nearly $5/barrel since school has started and gas nearly $.80/gallon because of diminishing summer demand Chevron is having trouble with keeping up with QT and Shell. I'm surprised Chevron hasn't tanked already.
- Chip B
i would like to say that i actually have already downloaded the phoned-in post on my ipod, and its already reached my top 25 played list. anyways, since the chevron is on the corner of the loop and 41, and the shell is merely a quarter of the mile down the road, wouldn't it make sense that the chevron would get attract most of the people who are turning from 41 onto the loop, and their path to their destination does not continue down 41, so they will never get a chance to see how much cheaper the shell gas prices are. it is also possible that the chevron will attract customers who are loyal to the chevron, such as customers who have a chevron gas card, and find it more rational for them to fill up at the chevron, maybe if they didn't have anything else to pay with. the bottom line is, if i am driving down 41 and plan to turn on the loop, i won't even get a chance to see the shell's gas prices, so i will most likely just fill up at the chevron when in need of gas. if i was aware of the price difference, i would most definitely make the journey down the the shell station.
peace out
-tanner
p.s. the new quiz pod things are the bomb
First off, i, like some of my fellow peers, am blown away by this amazing high tech class. this audio post is very sweet. so yes, onto the question about the gas stations...how does chevron get money? well like tanner and brian have previously said, the pure convienience of where the store is located is key. Let's say my little gas signal comes on in my car while exiting the north loop, getting onto 41 saying i have 10 miles until i have to fill up. well it's my lucky day,as i exit of the loop, Chevron is right there! so without even giving that poor Shell a chance down the road, even though i know full well that my tank will last long enough to get down the road and save 30 cents/gallon, i fill up at Chevron. Consumers might not even know about the Shell down the road because of the prime location of the busy intersection for the Chevron.
Another reason that the Chevron is making a profit may not necessarily be from their gas. perhaps their gas is more expensive than shells, but their food and drinks inside are unbelieveably cheap. They could do a better job at advertising these cheap products as well, such as big signs saying a deal they're having on water or something. I know while doing alot of work this summer outside, the company i worked for knew the gas station with the best prices for gallons of water and snacks. We became faithful to that gas station because of their cheap food, and periodically filled up there even though it was a little more expensive than another gas staiong down the road. so yes, i can understand why the chevron is still doing well.
-john schmidt
Go for shell baby. East or West, Shell is the best!
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