Pricing strategies at points of sale encourage tobacco purchases

A study published in the journal Tobacco Control[1] examined some aspects of point-of-sale marketing that may influence smoking behavior, including product availability and price promotions.

Point-of-sale tobacco marketing strategies have been shown to influence smoking behavior. This study conceptualizes how these aspects of point-of-sale marketing potentially influence individual attention, memory, implicit attitudes, and purchase intention of young adult smokers aged 18–30.

Study participants were presented with several purchase scenarios requiring a point-of-sale decision. The objective of this experiment was to examine the factors that influence the purchase intention of young adult smokers. These included smoking behaviors (brand selection, consumption level, current number of cigarettes the smoker owns), consideration of upcoming tobacco control measures (such as anticipation of a tax increase), the availability of tobacco and nicotine products (the presence of products other than traditional cigarettes, for example), and the tobacco industry's point-of-sale pricing strategies (promotions, discounts, gifts). A no-purchase option was included in each scenario.

Example of scenario studied:

Of the 14,584 scenarios examined, participants chose to purchase cigarettes in 70.9% of cases. The likelihood of purchasing cigarettes did not vary significantly by education level. Overall, when promotions were offered for a pack of cigarettes, participants were more likely to purchase them, particularly if the offers were on mid-range brands. Purchase intentions were also higher when discounts were offered for a carton of cigarettes (particularly for low-end brands). Discounts offered on premium cigarettes were not associated with altered purchase intentions.

The study's findings highlight that classifying brands as "premium," "mid-range," or, conversely, "low-end" is not without consequences. Price promotions are highly effective for this latter category of products, but not for so-called high-end products. Removing such a distinction established by manufacturers between their products can help increase the minimum price level and thereby reduce disparities based on socioeconomic status.

Point-of-sale marketing exposes young people to smoking

Studies show that for every 10% increase in cigarette prices, adult smoking decreases by 3 to 5% and youth smoking by 6 to 7%[2]-[3]Conversely, the tobacco industry knows that low prices help attract new consumers and help keep current smokers smoking. In 2018, the tobacco industry spent $8.4 billion marketing its products across the United States, of which nearly $751 billion ($6.71 billion) was spent on point-of-sale strategies.

Point-of-sale advertising and promotions are effective because they target and attract buyers at the precise location and time when they can purchase a specific product. In addition to normalizing the presence of tobacco products in everyday life, this marketing encourages youth initiation and makes it harder for smokers to quit.[4]In 2012, the US Surgeon General concluded that tobacco companies' marketing efforts, including price reduction strategies, at points of sale contributed to the initiation and progression of smoking among young people who are particularly susceptible to it.[5].

These actions in places of sale weaken the effectiveness of anti-smoking laws and expose the population to the operations of the tobacco industry which seeks to expand its consumer base.

Keywords: Marketing, Points of Sale, Tobacco Industry, Prices, Youth Photo credit: ©Truth Initiative

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©Generation Without Tobacco [1] Choi K, Kreuger K, McNeel TS, et al Point-of-sale cigarette pricing strategies and young adult smokers' intention to purchase cigarettes: an online experiment Tobacco Control Published Online First: February 25, 2021. doi: 10.1136/tobaccocontrol-2020-056004 [2] Center for Public Health Systems Science. Pricing Policy: A Tobacco Control Guide. St. Louis: Center for Public Health Systems Science, George Warren Brown School of Social Work at Washington University in St. Louis and the Tobacco Control Legal Consortium; 2014. [3] Tauras J, Pesko M, Huang J, Chaloupka F, Farrelly M. The Effect of Cigarette Prices on Cigarette Sales: Exploring Heterogeneity in Price Elasticities at High and Low Prices. National Bureau of Economic Research; 2016. doi:10.3386/w22251 [4] Paynter J, Edwards R. The impact of tobacco promotion at the point of sale: a systematic review. Nicotine Tob Res. 2009 Jan;11(1):25-35. doi: 10.1093/ntr/ntn002. [5] 8 HHS, Prevention Tobacco Use Among Youth and Young Adults: A Report of the Surgeon General, 2012, National Committee Against Smoking |