An Offer You Can’t Refuse: Who Uses Cigarette Price Discounts?
نویسندگان
چکیده
We investigate whether and how current sales of cigarettes vary with past and future sales made under two different types of in-store price discounts: those that require a smoker to buy a carton (10 packs) and those that require a smoker to only buy a single pack. We hypothesize that different types of consumers respond to these promotions. We posit that smokers who utilize discounts tied to a pack may be less committed smokers or smokers who act impulsively. We posit that smokers who utilize discounts tied to cartons may be more committed smokers who have a longer time horizon and are more cost-conscious. Existing cigarette demand studies find that consumers exhibit rationally addictive behavior because current consumption varies with past and future ∗This research is supported by a grant from the National Cancer Institute (Award #1R01 CA 12033801A1). We thank Michael Goldwasser and Eamon Molloy for expert research assistance and Michael Grossman, Donald Kenkel, Philip DeCicca, Mark Stehr, and Mark Showalter for valuable feedback. †Corresponding author; Tel: 847-491-8676; Fax: 847-467-1777; Addr: 2001 Sheridan Rd, Evanston IL 60208
منابع مشابه
Can you refuse these discounts? An evaluation of the use and price discount impact of price-related promotions among US adult smokers by cigarette manufacturers
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