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Article
Publication date: 1 April 2006

Klaus von Lampe

The research aims at providing a comprehensive assessment of the cigarette black market in Germany and the UK within the framework of the study of organized crime.

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Abstract

Purpose

The research aims at providing a comprehensive assessment of the cigarette black market in Germany and the UK within the framework of the study of organized crime.

Design/methodology/approach

The particular approach upon which this paper is based is a systematic, cross‐national review of open sources, including media reports and government documents. The information gleaned from these sources is transferred into a classificatory scheme derived from the analysis of organized crime.

Findings

While similarities exist regarding the inner workings of the cigarette black market, interesting variations between the two countries emerge, including an asynchronicity of the developmental process and differences in modus operandi. In addition to cross‐national differences, striking regional variations in the prevalence and character of black market activity exist within each country. This leads to the conclusion that a multitude of factors have to be considered to account for the overall dynamics and specific manifestations of the cigarette black market.

Research limitations/implications

In future research the database needs to be broadened beyond open sources.

Practical implications

Policy decisions with the aim to curb the cigarette black market have to take the apparent complexity of causal and intervening factors into account. The level of taxation is just one of several factors.

Originality/value

No comparative analysis of the cigarette black markets in Germany and the UK has previously been available.

Details

Journal of Financial Crime, vol. 13 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Book part
Publication date: 7 September 2012

James Langenfeld and Brad Noffsker

In a number of recent multi-billion dollar cases brought against cigarette manufacturers, plaintiffs have in part alleged that the cigarette manufacturers (1) conspired not to…

Abstract

In a number of recent multi-billion dollar cases brought against cigarette manufacturers, plaintiffs have in part alleged that the cigarette manufacturers (1) conspired not to compete on the basis of health claims or the introduction of potentially safer cigarettes since the 1950s, and (2) engaged in fraudulent advertising by making implied health claims in advertisements selling ‘low tar’/‘light’ cigarettes. In this type of litigation, defendants’ actions could be due to alleged illegal behaviour as asserted by plaintiffs, or be the result of market forces that may have nothing to do with allegedly inappropriate acts. We examine the economic evidence relating to these allegations, taking into account some of the major influences on cigarette company behaviour. In particular, our analyses show that much of the cigarette manufactures’ behaviour can be explained by Federal Trade Commission and related government actions, rather than conspiracy or fraudulent acts. We find the economic evidence is inconsistent with an effective conspiracy to suppress information on either smoking and health or the development and marketing of potentially safer cigarettes. Regarding ‘lower tar’ and ‘light’ cigarettes, the economic evidence indicates that the cigarette manufacturers responded to government and public health initiatives, and that disclosing more information on smoking compensation earlier than the cigarette companies did would not have had any significant impact on smoking behaviour.

Details

Research in Law and Economics
Type: Book
ISBN: 978-1-78052-898-4

Keywords

Article
Publication date: 15 February 2016

Mary Catherine Neuburger

This paper aims to explore the parameters of Bulgarian cigarette advertising in the Cold War period. It contrasts the evolution of cigarette marketing in Bulgaria and the USA in…

Abstract

Purpose

This paper aims to explore the parameters of Bulgarian cigarette advertising in the Cold War period. It contrasts the evolution of cigarette marketing in Bulgaria and the USA in the context of contrasting communist and capitalist notions of the “good life” versus the “common good”.

Design/methodology/approach

The paper is informed by a growing literature on advertising under communism, but also new work on consumption in the Soviet Union and Cold War Eastern Europe. It draws upon archival and printed Bulgarian, and some American, sources, and the memoir of a key player in the Bulgarian tobacco industry.

Findings

The paper concludes that marketing of cigarettes in communist Bulgaria gained momentum in the same period that cigarette advertising in the USA was severely curtailed. In Bulgaria, the notion that cigarettes were key to the promised “good life” and “building socialism”, out-weighed any notion of harm to the “common good”.

Originality/value

This study casts doubt on the common notion that there was no advertising under communism, by offering an in-depth study of an industry that was allowed to market and develop a quality product to an unusual degree. It undermines assumptions about “command” economy, industry behavior, contributing to a re-thinking of Eastern Bloc consumer culture. In addition, it sheds light on changes in the acceptability of cigarette advertising within the Cold War context, namely, how the process of advertising regulation in the West, and increased marketing in the East, fit into Cold War debates and interactions.

Details

Journal of Historical Research in Marketing, vol. 8 no. 1
Type: Research Article
ISSN: 1755-750X

Keywords

Article
Publication date: 1 March 1999

Robert Sparks

Tobacco sponsorship of sports has increasingly been cast as a public issue on the grounds that it supports pediatric smoking by circumventing advertising restrictions and…

1047

Abstract

Tobacco sponsorship of sports has increasingly been cast as a public issue on the grounds that it supports pediatric smoking by circumventing advertising restrictions and communicating positive brand information to children(28,31,32). Research on tobacco sponsorship effects on children is as yet inconclusive, but growing evidence suggests that sponsorship is an effective medium for building cigarette brand awareness and image among under‐aged youth. Research in this area has been inconclusive in part because it lacks a unified framework in which the various contributions of sponsorship to brand knowledge and use can be analysed holistically. This paper proposes that the brand equity concept(1,2,18) provides such a framework. The paper reviews previous research on tobacco sponsorship and children, and presents findings from a study that assessed the relative contribution of sponsorship to brand awareness among fourteen year‐olds (n=366) in Dunedin, New Zealand. The value of sponsorship‐derived cigarette brand knowledge among youth is expressed in terms of Keller's(18) concept of customer‐based brand equity. The study found that children's awareness of tobacco brands and tobacco sponsorships varied according to their smoking experience, sports interests and gender. Cigarette brands with the strongest event associations were those that sponsored events that had a high appeal for the youth in the study. The brands with the highest unaided recall levels were those that were prominently shown in point of purchase displays in stores frequented by the youth, and included those with the highest sponsorship profiles. The research demonstrates that tobacco companies can achieve significant brand recall among children through sport sponsorship, as well as interest‐based (lifestyle) segmentation and targeting benefits, and brand positioning (personality) benefits. The findings have implications for public policy and industry practice. In policy terms, if the goal of tobacco advertising prohibitions is to denormalise smoking by restricting the positive promotional imagery of cigarettes, then sport sponsorship and point of purchase displays need to be incorporated into advertising legislation. In terms of industry practice, the fact that tobacco sponsorship reaches and influences under‐aged youth stands to be a matter of concern for any entity that does not want this social burden. It is recommended that corporations considering involvement in a tobacco‐sponsored event should evaluate the reach of the event and the potential effects of its promotions on youth. Where a youth‐interest connection has been demonstrated for the event, corporations should weigh the social risks and costs of the sponsorship. For non‐tobacco related entities these costs include the potential negative impacts of tobacco‐linked event cross‐promotions on their own brands and corporate image.

Details

International Journal of Advertising and Marketing to Children, vol. 1 no. 3
Type: Research Article
ISSN: 1464-6676

Keywords

Article
Publication date: 5 December 2022

James Russell Pike, Stephen Miller, Christopher Cappelli, Nasya Tan, Bin Xie and Alan W. Stacy

This paper aims to apply the Product Life Cycle (PLC) and Product Evolutionary Cycle (PEC) frameworks to the nicotine and tobacco market to predict the impact of television…

Abstract

Purpose

This paper aims to apply the Product Life Cycle (PLC) and Product Evolutionary Cycle (PEC) frameworks to the nicotine and tobacco market to predict the impact of television commercials for electronic cigarettes (e-cigarettes) on youth.

Design/methodology/approach

Surveys were administered over a three-year period to 417 alternative high school students from Southern California who had never used e-cigarettes, cigarettes or cigars at the baseline. Covariate-adjusted logistic regression causal mediation models were used to test competing hypotheses from the PLC and PEC frameworks.

Findings

Results support a refined version of the PEC framework where e-cigarette commercials increase the odds of e-cigarette use, which leads to subsequent use of competing products including cigarettes and cigars.

Practical implications

This investigation demonstrates the utility of frameworks that conceptualize youth-oriented marketing as a two-part process in which potential customers are first convinced to adopt a behavior and then enticed to use a specific product to enact the behavior.

Social implications

Rising rates of nicotine and tobacco product use among youth may be partially attributable to e-cigarette commercials.

Originality/value

Regulations in the USA that permit television commercials for e-cigarettes but restrict the promotion of cigarettes and cigars have created an opportunity to study product adoption among youth consumers when one product has a strategic marketing advantage.

Details

Young Consumers, vol. 24 no. 2
Type: Research Article
ISSN: 1747-3616

Keywords

Article
Publication date: 5 July 2023

Yanmei Xu, Yanan Zhang, Ziqiang Wang, Xia Song, Zhenli Bai and Xiang Li

Unlike traditional industries, the e-cigarette is an epoch-making innovative product originating in China and occupying an absolute competitive advantage in the international…

Abstract

Purpose

Unlike traditional industries, the e-cigarette is an epoch-making innovative product originating in China and occupying an absolute competitive advantage in the international market. The traditional A-U model describes the laws and characteristics of technological innovation in developed countries. In contrast, the inverse A-U model depicts the process of “secondary innovation” in late-developing countries through digestion and absorption. This paper aims to find out that if the e-cigarette, as a “first innovation” industry in a late-developing country, conform to the A-U model or conform to the “inverse A-U model”.

Design/methodology/approach

This paper takes the patent data of e-cigarettes from 2004 to 2021 as the research object, and uses Python’s Jieba segment words to divide product innovation and process innovation, and then uses statistical analysis methods to conduct empirical analyses on these data.

Findings

Thus, an improved A-U model suitable for the e-cigarette industry is proposed. In this model, product innovation in the e-cigarette industry appeared earlier than process innovation, but the synchronous development of product and process innovation is not lagging. The improved A-U model in the e-cigarette industry is not only different from the traditional A-U model but also does not conform to the inverse A-U model.

Research limitations/implications

It is conducive to expanding and clarifying the theoretical contribution and applicable boundaries of the A-U model and has sparked thinking and exploration of the A-U model in e-cigarettes and emerging industries.

Practical implications

On this basis, suggestions on the development path and countermeasures of the e-cigarette industry are put forward.

Originality/value

Based on the e-cigarette industry, this paper takes patents as the research object and provides the method of dividing product innovation and process innovation, and proposes an A-U model suitable for the e-cigarette industry on this basis. By comparing the traditional A-U model with the inverse A-U model in latecomer countries, the background and causes of e-cigarette A-U model heterogeneity are analyzed from different stages and overall morphology. Based on this, the heterogeneity characteristics of e-cigarette innovation are summarized and sorted out.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 1 July 1987

K.E. Kioulafas

The factors underlying the variations in sales of different varieties of cigarettes in Greece did not always show that changes in selling prices always had an impact on sales…

Abstract

The factors underlying the variations in sales of different varieties of cigarettes in Greece did not always show that changes in selling prices always had an impact on sales. Advertising has a significant impact on the demand for the better varieties of cigarette, and advertisers should be aware of different reactions to “basic” and “extra‐fine” cigarettes. Marketing planners must bear in mind that average retail selling price has an impact on most sales to foreigners, except those of “fine” and “extra‐fine”, so price can be used to increase sales in certain cases.

Details

European Journal of Marketing, vol. 21 no. 7
Type: Research Article
ISSN: 0309-0566

Keywords

Content available
Article
Publication date: 1 September 1999

Robert Sparks

Abstract

Details

International Journal of Sports Marketing and Sponsorship, vol. 1 no. 3
Type: Research Article
ISSN: 1464-6668

Keywords

Case study
Publication date: 20 January 2017

Daniel Diermeier and Shail Thaker

Describes the history of the tobacco industry and its emergence as an extremely effective marketer and non-market strategist. After years of success, both publicly and…

Abstract

Describes the history of the tobacco industry and its emergence as an extremely effective marketer and non-market strategist. After years of success, both publicly and politically, the leaders of the tobacco industry are faced with mounting political pressure and the financial threat of litigation from class-action lawsuits. The leaders face an industry-wide strategic decision of whether to acquiesce to government demands in exchange for immunity, focus on judicial success, or develop a new course of action.

To evaluate the formulation and implementation of non-market strategies in the context of regulatory, legislative, and legal institutions. To understand how various aspects of the non-market environment interact and how these environments not only change over time, but change market competition within an industry. Further, to formulate and decide between firm-specific and industry-wide strategies. Finally, to appreciate and reflect upon the potential conflict between non-market strategies and ethical concerns.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

Book part
Publication date: 20 May 2017

Philip DeCicca, Donald Kenkel, Feng Liu and Hua Wang

The U.S. 2009 Tobacco Control Act opened the door for new antismoking policies by giving the Food and Drug Administration broad regulatory authority over the tobacco industry. We…

Abstract

The U.S. 2009 Tobacco Control Act opened the door for new antismoking policies by giving the Food and Drug Administration broad regulatory authority over the tobacco industry. We develop a behavioral welfare economics approach to conduct cost-benefit analysis of FDA tobacco regulations. We use a simple two-period model to develop expressions for the impact of tobacco control policies on social welfare. Our model includes: nudge and paternalistic regulations; an excise tax on cigarettes; internalities created by period 1 versus period 2 consumption; and externalities from cigarette consumption. Our analytical expressions show that in the presence of uncorrected internalities and externalities, a nudge or a tax to reduce cigarette consumption improves social welfare. In sharp contrast, a paternalistic regulation might either improve or worsen social welfare. Another important result is that the social welfare gains from new policies do not only depend on the size of the internalities and externalities, but also depend on the extent to which current policies already correct the problems. We link our analytical expressions to the graphical approach used in most previous studies and discuss the information needed to complete cost-benefit analysis of tobacco regulations. We use our model as a framework to reexamine the evidence base for strong conclusions about the size of the internalities, which is the key information needed.

Details

Human Capital and Health Behavior
Type: Book
ISBN: 978-1-78635-466-2

Keywords

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