IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v18y2021i13p6795-d581470.html
   My bibliography  Save this article

The Association between E-Cigarette Price and TV Advertising and the Sales of Smokeless Tobacco Products in the USA

Author

Listed:
  • Yu Wang

    (School of Public Health, Georgia State University, Atlanta, GA 30303, USA)

  • Zongshuan Duan

    (School of Public Health, Georgia State University, Atlanta, GA 30303, USA)

  • Sherry L. Emery

    (NORC at The University of Chicago, Chicago, IL 60637, USA)

  • Yoonsang Kim

    (NORC at The University of Chicago, Chicago, IL 60637, USA)

  • Frank J. Chaloupka

    (School of Public Health, University of Illinois at Chicago, Chicago, IL 60612, USA)

  • Jidong Huang

    (School of Public Health, Georgia State University, Atlanta, GA 30303, USA)

Abstract

This study aims to examine how e-cigarette prices and advertising, key determinants of e-cigarette demand, are associated with the demand for smokeless tobacco (SLT) products in the US. Market-level sales and price data by year (2010–2017), quarter, and type of retail store were compiled from Nielsen retail store scanner database. E-cigarette TV advertising ratings data were compiled from Kantar Media. Four-way (market, year, quarter, store type) fixed-effect models were used to estimate the associations between e-cigarette price and TV advertising and sales of SLT products (chewing loose leaf, moist snuff, and snus). Our results showed that a 1% rise in own price was associated with a reduction in sales by 1.8% for chewing loose leaf, 1.6% for moist snuff, and 2.2% for snus, respectively. In addition, a 1% rise in disposable e-cigarette price was associated with 0.3% and 0.6% increased sales for moist snuff and snus, respectively. The association between e-cigarette TV advertising and SLT product sales was not significant. Our results suggest that disposable e-cigarettes and certain SLT products (moist snuff and snus) are potential substitutes. Policies aiming to regulate e-cigarette use and sales need to consider their potential link with the demand for SLT products.

Suggested Citation

  • Yu Wang & Zongshuan Duan & Sherry L. Emery & Yoonsang Kim & Frank J. Chaloupka & Jidong Huang, 2021. "The Association between E-Cigarette Price and TV Advertising and the Sales of Smokeless Tobacco Products in the USA," IJERPH, MDPI, vol. 18(13), pages 1-14, June.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:13:p:6795-:d:581470
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/18/13/6795/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/18/13/6795/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hui-Shung Chang & Henry W. Kinnucan, 1992. "Measuring exposure to advertising: A look at gross rating points," Agribusiness, John Wiley & Sons, Ltd., vol. 8(5), pages 413-423.
    2. Yuqing Zheng & Chen Zhen & Daniel Dench & James M. Nonnemaker, 2017. "U.S. Demand for Tobacco Products in a System Framework," Health Economics, John Wiley & Sons, Ltd., vol. 26(8), pages 1067-1086, August.
    3. Chad Cotti & Erik Nesson & Nathan Tefft, 2016. "The Effects of Tobacco Control Policies on Tobacco Products, Tar, and Nicotine Purchases among Adults: Evidence from Household Panel Data," American Economic Journal: Economic Policy, American Economic Association, vol. 8(4), pages 103-123, November.
    4. Anna E. Tuchman, 2019. "Advertising and Demand for Addictive Goods: The Effects of E-Cigarette Advertising," Marketing Science, INFORMS, vol. 38(6), pages 994-1022, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu Wang & Zongshuan Duan & Scott R. Weaver & Lucy Popova & Claire A. Spears & David L. Ashley & Terry F. Pechacek & Michael P. Eriksen & Jidong Huang, 2022. "Consumption of JUUL vs. Other E-Cigarette Brands among U.S. E-Cigarette Users: Evidence from Wave 5 of the PATH Study," IJERPH, MDPI, vol. 19(17), pages 1-12, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cotti, Chad & Courtemanche, Charles & Maclean, Joanna Catherine & Nesson, Erik & Pesko, Michael F. & Tefft, Nathan W., 2022. "The effects of e-cigarette taxes on e-cigarette prices and tobacco product sales: Evidence from retail panel data," Journal of Health Economics, Elsevier, vol. 86(C).
    2. Henry Saffer & Daniel Dench & Michael Grossman & Dhaval Dave, 2020. "E-cigarettes and adult smoking: Evidence from Minnesota," Journal of Risk and Uncertainty, Springer, vol. 60(3), pages 207-228, June.
    3. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2019. "The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use," NBER Working Papers 26017, National Bureau of Economic Research, Inc.
    4. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2020. "The effects of traditional cigarette and e-cigarette tax rates on adult tobacco product use," Journal of Risk and Uncertainty, Springer, vol. 60(3), pages 229-258, June.
    5. Esteban Petruzzello, 2019. "Measuring the Effect of Policy on the Demand for Menthol Cigarettes: Evidence from Household-Level Purchase Data," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(3), pages 422-445, June.
    6. Lingxiao Wang & Yuqing Zheng & Steven C. Buck, 2021. "How does the affordable care act Medicaid expansion affect cigarette consumption?—The mechanism and heterogeneity," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(3), pages 763-791, September.
    7. Ali Goli & Simha Mummalaneni & Pradeep K. Chintagunta & Sanjay K. Dhar, 2022. "Show and Sell: Studying the Effects of Branded Cigarette Product Placement in TV Shows on Cigarette Sales," Marketing Science, INFORMS, vol. 41(6), pages 1163-1180, November.
    8. Rahi Abouk & Scott Adams & Bo Feng & Johanna Catherine Maclean & Michael F. Pesko, 2023. "The effect of e‐cigarette taxes on pre‐pregnancy and prenatal smoking," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(4), pages 908-940, September.
    9. Ali Goli & Simha Mummalaneni & Pradeep K. Chintagunta, 2024. "Making a Smooth Exit? Menthol Bans and Cigarette Sales in Massachusetts," Marketing Science, INFORMS, vol. 43(3), pages 564-589, May.
    10. Hovhannisyan, Vardges & Bastian, Christopher T. & Devadoss, Stephen, 2020. "An Empirical Analysis of Tobacco Addiction," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304425, Agricultural and Applied Economics Association.
    11. Bart J. Bronnenberg & Jean-Pierre Dubé & Chad Syverson, 2022. "Marketing Investment and Intangible Brand Capital," Journal of Economic Perspectives, American Economic Association, vol. 36(3), pages 53-74, Summer.
    12. Erik Nelson & John Fitzgerald & Nathan Tefft, 2019. "The distributional impact of a green payment policy for organic fruit," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-25, February.
    13. Michael R. Richards & Joachim Marti & Johanna Catherine Maclean & Jason Fletcher & Donald Kenkel, 2017. "Tobacco Control, Medicaid Coverage, and the Demand for Smoking Cessation Drugs," American Journal of Health Economics, MIT Press, vol. 3(4), pages 528-549, Fall.
    14. Naoki Aizawa & You Suk Kim, 2020. "Public and Private Provision of Information in Market-Based Public Programs: Evidence from Advertising in Health Insurance Marketplaces," NBER Working Papers 27695, National Bureau of Economic Research, Inc.
    15. Chad Cotti & Erik Nesson & Nathan Tefft, 2019. "Impacts of the ACA Medicaid expansion on health behaviors: Evidence from household panel data," Health Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 219-244, February.
    16. Li, Wenying & Dorfman, Jeffrey H., 2019. "The implications of heterogeneous habit in consumer beverage purchases on soda and sin taxes," Food Policy, Elsevier, vol. 84(C), pages 111-120.
    17. Yi-Lin Tsai & Elisabeth Honka, 2021. "Informational and Noninformational Advertising Content," Marketing Science, INFORMS, vol. 40(6), pages 1030-1058, November.
    18. Erik Nesson, 2017. "The Impact of Tobacco Control Policies on Adolescent Smoking: Comparing Self-Reports and Biomarkers," American Journal of Health Economics, University of Chicago Press, vol. 3(4), pages 507-527, Fall.
    19. Dragone, Davide & Raggi, Davide, 2021. "Resolving the milk addiction paradox," Journal of Health Economics, Elsevier, vol. 77(C).
    20. Michael E. Darden, 2024. "Optimal e-cigarette policy when preferences and internalities are correlated," Journal of Risk and Uncertainty, Springer, vol. 68(2), pages 107-131, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:18:y:2021:i:13:p:6795-:d:581470. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.