Business Buying Behavior of CNG Equipment in Pakistan

Abstract

CNG industry is the fastest growing industry in Pakistan. The people of Pakistan have been using petroleum products as fuel in their automobiles, thus spending a huge amount of foreign exchange on import of petroleum. The government of Pakistan has taken certain concrete steps in order to promote the use of natural gas as a fuel substitute in different sectors like power generation, Fertilizer, Industries, transport etc. CNG is the most environmental friendly, safe, and economical fuel source. Pakistan is the third largest CNG using country in the world. At present it has a network of 1200 CNG fueling stations, which are providing CNG to more than 10,000,000 vehicles. Hydrocarbon Development Institute of Pakistan (HDIP) has pioneered the introduction and development of compressed natural gas as a transport fuel in Pakistan in 1982 by installing pilot project at Karachi and Islamabad. Limited fuel reserves and there high prices, the world at large is taking interest in developing alternative fuel technologies. Pakistan is lucky that it already has an infrastructure and technology for operations of CNG. We can not ignore the need for CNG to help improve our economy, and a common man can benefit from CNG who cannot afford the expensive fuel for their vehicles. 2 There are three main components of CNG station. The most primary is compressor which compresses the natural gas into such a form which can be used by the vehicles as a energy source. the second main component is the storage cylinders. The compressed gas is stored into storage cylinders.the last main component is the dispensors. It is used to refill the vehicles with CNG. To know your customers is critical for the success of any business. It is of utmost importance to these firms to understand the buying behavior of their customers (fuel stations owners + entrepreneurs) and to identify the factors governing the specific buying behavior of customers. Marketing mix designed is an absolute failure without understandin business buying behavior. After studying the broad problem area following problem statement was made; “What are the factors governing the buying behavior of CNG equipment in Pakistan”. After a brief literature survey we have formulated several hypothesis .This is a field study with minimal or no interference. this is research is done in a non contrive study setting and it is one shot cross sectional study. the data collected is through questionnaire and interviews. For the data analysis descriptive statistic and hypothesis testing is used. The population was 1200 and the sample size was 50. After a statistical analysis we have formulated a model of business buying behavior in CNG equipment. This model clearly shows the current buying behavior and salient factors affecting the buying the buying behavior.