Effect of brand and advertising medium on demand for e-cigarettes: Evidence from an experimental auction

Autor: Matthew C. Rousu, Richard O'Connor, Jay Corrigan
Jazyk: angličtina
Rok vydání: 2017
Předmět:
Zdroj: Preventive Medicine Reports, Vol 7, Iss C, Pp 11-15 (2017)
Druh dokumentu: article
ISSN: 2211-3355
DOI: 10.1016/j.pmedr.2017.04.013
Popis: Print and television advertisements for e-cigarettes are currently legal in the United States. Given that e-cigarettes are a lower-risk alternative to cigarettes, these ads could have a positive public health impact if they motivate smokers to switch to e-cigarettes. However, the public health impact of e-cigarette ads could be negative if ads increase demand for both e-cigarettes and cigarettes. We use experimental auctions –in which participants bid in real auctions and winners pay for the items they purchase – to study the effect of print and TV e-cigarettes ads on demand for the brand from the ad, for another e-cigarettes brand, and for cigarettes. We ran experiments with 288 Pennsylvania smokers in November 2014–March 2015 and we found that in cases where an ad affects demand for e-cigarettes, the ad moves demand for cigarettes in the same direction. For example, the Blu print ad increases demand for Blu e-cigarettes and cigarettes among non-white participants. The Vuse TV ad reduces demand for both types of e-cigarettes and for cigarettes. We also find that non-white participants are willing to pay more for e-cigarettes in the absence of advertising, and that smokers who worry most about their health are willing to pay more for e-cigarettes. The results of this study point to the need for greater scrutiny of advertising for e-cigarette products such that they do not also induce demand for tobacco cigarettes.
Databáze: Directory of Open Access Journals