Chevron cuts merchandising by direct mail

A recent policy decision by the management of Chevron, a subsidiary of Standard Oil of California, means it will no longer offer noncompany related merchandise to its charge-account customers by direct mail. Beginning with a current billing cycle, this service-station arm of the integrated oil giant will include in gas-and-oil statements only four-color stuffers selling its own tires , batteries, and accessories to be bought on installments, plus some Chevron car-care services.

"Our decision to abandon the direct mail stuffer program," said Jason E. Widmer, manager of travel card administration at Chevron, "was really based on two premises. One, that customers simply were no longer responding to this type of promotion like they used to. When we began this in 1969, we sold lots of bigger items --demand for even less expensive articles has fallen off. Secondly , we paid off the merchandiser and carried the installments on our own books. Now, we feel that the funds tied up in these receivables can be better used in other parts of the company operation."