BBER Publications

Document Type

Report

Publication Date

1954

Abstract

The file examines the rapid emergence of high-volume multi-pump gasoline service stations and their impact on gasoline marketing, retail competition, pricing, and consumer behavior in California. Written by Howard Vivian Finston and published by the Bureau of Business Research, College of Business Administration, University of New Mexico, the study traces the development of the multi-pump movement from its beginnings in Southern California following the opening of George Urich’s pioneering self-service station in 1947. Drawing on field research, industry interviews, cost analyses, market data, legal reviews, and technical studies of gasoline quality, the report evaluates the economic foundations of the multi-pump phenomenon and its implications for the petroleum industry. The study finds that multi-pump stations achieved substantial competitive advantages through functional design, high-volume operations, lower unit construction and operating costs, large-scale storage capacity, direct refinery purchasing, and aggressive sales promotion. These advantages enabled minor-brand distributors to expand their market share significantly, particularly through the use of discount pricing and self-service policies.

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