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

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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
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    References listed on IDEAS

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    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.
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    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.
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    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.

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