ABSTRACT

In this study, we examined the Distribution Activities and Customer Patronage of Petroleum Products in Oando Plc and Forte Oil Plc in Abia State, Nigeria. The major objective of the study was to carry out an analysis of the distribution activities among these two firms in the downstream sector of Nigerian Economy. The distribution activities studied were transportation, storage and physical distribution. The sample size of the study was 420 which was determined by simple random sampling. Determination of the sample size for this study was done in two (2) parts. The first part was the known population of the staff, while second part is the unknown population which was for customers and was calculated with Tremund and William’s model. Primary data was used for the study, which was measured on a 5-point Likert form. Data analysis was carried out using simple regression model. From the results, it was reviewed that the demographic profile recorded from the employees, 66.7% of the employees were male; 34.4% of the respondents were above 46 years of age. Majority of the respondents 40.6% had acquired ND/NCE certificate; 46.9% and 43.7% of the sampled employees were managerial staff and pump attendance respectively. 46.9% of the respondents have been working in downstream petroleum sector within 5 – 8years. The study also revealed that 65.6% of the staff strongly agreed that, road transportation affects product availability of petroleum products; 56.3% strongly agreed that, the movement of petroleum products from the depot to the filling station enhances customer patronage. 68.8% of the staff strongly agreed that, timely arrival of petroleum products affects sales turnover of petroleum products; 62.6% of the employees strongly agreed that, the storage facility serviceability affect customer patronage. From the result, we conclude that, the importance of physical distribution is also based on its relevance to customer satisfaction. By storing goods in convenient locations for shipment to wholesalers and retailers, and by creating fast reliable means of moving the goods, customer can be assured of availability and accessibility of the products. The study recommended that when carrying out feasibility and viability appraisal, attention must be given to the issue of accessibility and road network. Road network analysis must be given due consideration as part of appraisal report when forming valuation opinion and accessibility assessed quantitatively rather than relying on intuition. Also the downstream sector needs to expand their storage facilities in order to facilitate customer demand as at when due. More so, customer service provision unit should be made available in every station, in order to address complaints from customers promptly in order to attract customer patronage.

Key words: Physical distribution, storage, transportation, customer patronage.