Price regulation, product stocking strategies and market share for oil marketing companies in Kenya

Abstract

The purpose of this study was to establish the relationship between price regulation, stocking strategies and market share for Oil marketing companies in Kenya. The study was guided by the following objectives namely; the influence of price regulation on product stocking strategies and the relationship between price regulation, product stocking and market share for Oil Marketing companies in Kenya. The study adopted a cross-sectional survey (census) design where the primary data was collected using a questionnaire as the guiding as key instrument. The research targeted thirty five (35) registered oil firms involved in importation and marketing of oil products in Kenya (as per PIEA list). The respondents in the respective firms were supply/depot managers who are knowledgeable in petroleum industry business especially on stocks issues. The guiding Secondary data used was Acts of Parliament related to the petroleum sector and currently in operation. The survey response rate was 90%. The survey found out that price regulation has a very strong influence on the stocking strategies for Oil marketing companies in Kenya. The survey further revealed that there exist a relationship between price regulation and market shares for Oil marketing companies in Kenya though not statistically significant