The Unintended Consequences of Countermarketing Strategies: How Particular Antismoking Measures May Shift Consumers to More Dangerous Cigarettes

Yanwen Wang (), Michael Lewis () and Vishal Singh ()
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Yanwen Wang: Leeds School of Business, University of Colorado Boulder, Boulder, Colorado 80309
Michael Lewis: Emory University, Atlanta, Georgia 30322
Vishal Singh: Stern School of Business, New York University, New York, New York 10012

Marketing Science, 2016, vol. 35, issue 1, 55-72

Abstract: Countermarketing, or efforts to reduce consumption of certain products, has become common in categories such as tobacco, junk food, fossil fuels, and furs. Countermarketing has a particularly long history in the tobacco industry. Efforts to reduce smoking have included excise taxes that increase the cost of consumption, smoke-free restrictions that make consumption less convenient, and antismoking advertising campaigns that highlight the dangers of tobacco use. This article presents an analysis of the relative effectiveness of these different strategies. We find that cigarette excise taxes are the most effective tool for reducing overall cigarette sales, followed by antismoking advertising. Smoke-free restrictions are not found to have a significant effect on cigarette sales. We also investigate how these various policy tools induce product substitution. This issue is of considerable importance because some countermarketing techniques may potentially shift consumers to more dangerous, higher nicotine and tar cigarettes. Specifically, we find that excise taxes levied on a per pack basis rather than based on nicotine levels often shift consumers to more dangerous products.

Keywords: countermarketing; vice goods; cigarette marketing (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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