FUEL FOR THOUGHT; PUMP LOCATION, COST DRIVE GASOLINE SALES, NOT NAME BRANDS.

Byline: Katherine Yung Dallas Morning News

Patricia Betancourt could care less whether she fuels up her Honda Prelude with Mobil or Exxon gasoline.

All that matters to the 28-year-old Dallas homemaker is which gas pump is closest when the fuel gauge on her sports coupe hits the red line.

``Gas seems to be pretty much all the same,'' said Betancourt. ``One brand doesn't seem to make the car run any better than another brand.''

Gas is gas is gas, or so most consumers think, and the proposed $79.3 billion merger of the nation's two largest oil companies, Exxon Corp. and Mobil Corp., hasn't done much to change that perception.

Drivers don't expect the two oil giants' products to change much once oil fields and refineries are combined, and deep down, they suspect they weren't much different to start with.

``Customers can't tell you what is different about Mobil gasoline vs. Exxon,'' said Allen Adamson, managing director of Landor Associates, a New York corporate identity and brand consulting firm.

The new Exxon Mobil Corp. plans to sell both brands of gasoline. When asked what the company would tell consumers about how Exxon gas differs from that of Mobil, an Exxon spokesman would only say, ``It is very early to get into that level of detail.''

The merger of Exxon and Mobil underscores the uphill challenge oil companies face in using advertising and marketing to create perceptions that one brand of gasoline is superior to another.

``Everybody really does know the brand doesn't make a difference,'' said Jim Albright, a professor of advertising and marketing at the University of Texas at Denton who worked on Exxon's U.S. advertising account during the early 1970s.

Despite the millions spent by oil companies to create loyalty to one brand of gas, consumers are filling up at either the nearest gas pump or the cheapest one.

Station location ranks as the No. 1 reason why people buy a particular brand of gas, according to a survey of consumers' gas-buying habits by NPD Group, a market research firm in Houston. Location is followed by price, quality, brand name and credit card affiliation.

While location has long been cited as the top reason for buying a brand of gas, NPD's research shows price is becoming more important despite this year's record low oil prices.

``People are more in tune with price as a reason to buy,'' said Dawn Zieren, NPD's director of gasoline and convenience-store services.

Part of the industry's problem stems from the product itself. All gasoline brands must meet certain minimum quality standards established by the federal government. Whatever else is added, such as detergents and anti-rust additives, is up to the individual companies.

``It is kind of like when you take a look at bananas,'' said Daniel Howard, a professor of marketing at Southern Methodist University. ``Chiquita has spent a lot of money on advertising. But people still regard a banana as a banana.''

Even when companies try to sell their brands on something other than the gasoline itself, such as high levels of customer service or fast fill-ups, their efforts to differentiate themselves haven't led to sustainable competitive advantages.

With everyone rushing to offer clean restrooms, gourmet coffee and friendly service, standing out from the pack remains harder than ever.

``Especially now, there is not much of a differentiation between all the major oil companies,'' said Mark Miller, manager of corporate advertising for Texaco Inc.

That is putting pressure on oil companies to dream up new ways of making their brand different.

Already, service stations are teaming up with fast-food chains to gain an edge. Expect new technology and more retailing experiments to follow, said Simon Williams, chairman of the Sterling Group, a New York-based brand consulting firm.

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DRAWING: (Color) no caption (Gulf Oil advertisement)