Hostname: page-component-cd9895bd7-mkpzs Total loading time: 0 Render date: 2024-12-26T15:52:16.407Z Has data issue: false hasContentIssue false

Choosing a Cigarette Brand: Determining the Value ofCountermarketing Information to Smokers Using Field Auctions

Published online by Cambridge University Press:  26 January 2015

Matthew C. Rousu
Affiliation:
Susquehanna University, Selinsgrove, PA
James Nonnemaker
Affiliation:
RTI International, Research Triangle Park, NC
Matthew Farrelly
Affiliation:
RTI International, Research Triangle Park, NC

Abstract

Information about cigarettes can help smokers come to an informed decisionabout what cigarettes to purchase. Countermarketing information can helpsmokers make informed decisions, but little is known about the value of thisinformation to smokers. In this article, we use data from experimentalauctions to estimate the value of countermarketing information that countersindustry claims about reduced-risk cigarettes. We find that this informationhas significant value to smokers who have been exposed to marketinginformation from tobacco companies touting reduced-risk cigarettes, but wefind no evidence it provides value to smokers not exposed to this marketinginformation.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alfnes, F., and Rickertsen, K.European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets.” American Journal of Agricultural Economics 85(2003):396405.10.1111/1467-8276.t01-1-00128Google Scholar
Ashley, M.J., Cohen, J., and Ferrence, R.'Light' and ‘Mild’ Cigarettes: Who Smokes Them? Are They Being Misled?Canadian Journal of Public Health 92(2001):407–11.11799542Google Scholar
Becker, G., DeGroot, M., and Marschak, J.Measuring Utility by a Single-Response Sequential Method.” Behavioral Science 9(1964):226–32.10.1002/bs.38300903045888778Google Scholar
Biener, L., Bogan, K., and Connolly, G.Impact of Corrective Health Information on Consumers' Perceptions of ‘Reduced Exposure’ Tobacco Products.” Tobacco Control 16(2007):306–11.10.1136/tc.2006.01924017897988Google Scholar
Cherry, T.L., Frykblom, P., Shogren, J.F., List, J.A., and Sullivan, M.B.Laboratory Testbeds and Non-Market Valuation: The Case of Bidding Behavior in a Second-Price Auction with an Outside Option.” Environmental and Resource Economics 29(2004):285–94.10.1007/s10640-004-5264-zGoogle Scholar
Coller, M., and Williams, M.B.Eliciting Individual Discount Rates.” Experimental Economics 2(1999):107–27.Google Scholar
Corrigan, J., and Rousu, M.The Effect of Initial Endowments in Experimental Auctions.” American Journal of Agricultural Economics 87(2006):448–57.Google Scholar
Corrigan, J.R., and Rousu, M.C.Testing Whether Field Auction Experiments Are Demand Revealing in Practice.” Journal of Agricultural and Resource Economics 33(2008):290301.Google Scholar
Cummings, K.M., and Giovino, G.A.Selling the ‘Quit’ Brand to Young Adult Smokers.” Journal of General Internal Medicine 19(2004):481–82.10.1111/j.1525-1497.2004.45004.x15109349Google Scholar
Davis, K.C., Nonnemaker, J.M., Farrelly, M.C., and Niederdeppe, J.Exploring Differences in Smokers' Perceptions of the Effectiveness of Cessation Media Messages.” Tobacco Control 20(2011):26–33.10.1136/tc.2009.03556820852323Google Scholar
Dickinson, D.L., and Bailey, D.Experimental Evidence on Willingness to Pay for Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan.” Journal of Agricultural and Applied Economics 37(2005):537–48.S1074070800027061Google Scholar
Difranza, J.R., Ursprung, W.W., and Carson, A.New Insights into the Compulsion to Use Tobacco from an Adolescent Case-Series.” Journal of Adolescence 33(2010):209–14.10.1016/j.adolescence.2009.03.00919406464Google Scholar
Dunsby, J., and Bero, L.A Nicotine Delivery Device without the Nicotine? Tobacco Industry Development of Low Nicotine Cigarettes.” Tobacco Control 13(2004):362–69.10.1136/tc.2004.00791415564619Google Scholar
Foster, W., and Just, R.E.Measuring Welfare Effects of Product Contamination with Consumer Uncertainty.” Journal of Environmental Economics and Management 17(1989):266–83.10.1016/0095-0696(89)90020-XGoogle Scholar
Hamilton, W.L., Norton, G.D., Ouellete, T.K., Rhodes, W.M., Kling, R., and Connolly, G.N.Smokers' Responses to Advertisements for Regular and Light Cigarettes and Potential Reduced-Exposure Tobacco Products.” Nicotine & Tobacco Research 6,Suppl 3(2004):s35362.10.1080/14622200412331320752Google Scholar
Harrison, G., and List, J.Field Experiments.” Journal of Economic Literature 42(2004):1013–59.Google Scholar
Harrison, G.W., Harstad, R.M., and Rutstrom, E.E.Experimental Methods and Elicitation of Values.” Experimental Economics 7(2004):123–40.10.1023/B:EXEC.0000026975.48587.f0Google Scholar
Harrison, G.W., Lau, M.I., and Williams, M.B.Estimating Individual Discount Rates in Denmark: A Field Experiment.” The American Economic Review 92(2002):1606–17.10.1257/000282802762024674Google Scholar
Institute of Medicine (IOM). Executive Summary. Internet site: www.nap.edu/catalog/10029.html (Accessed July 15, 2004).Google Scholar
Kenkel, D., and Chen, L.Consumer Information and Tobacco Use.” Tobacco Control in Developing Countries. Prabhat, Jha and Frank, Chaloupka, eds., pp. 177214. New York: Oxford University Press, 2000.Google Scholar
Kozlowski, L.T., Goldberg, M.E., Yost, B.A., White, E.L., Sweeney, C.S., and Pillitteri, J.L.Smokers' Misperceptions of Light and Ultra-Light Cigarettes May Keep Them Smoking.” American Journal of Preventive Medicine 15(1998):916.10.1016/S0749-3797(98)00004-X9651633Google Scholar
Kropp, R.Y., and Halpern-Felsher., B.L.Adolescents' Beliefs about the Risks Involved in Smoking “Light” Cigarettes.” Pediatrics 114(2004):e44551.10.1542/peds.2004-089315466070Google Scholar
Lusk, J.L., Fox, J.A., Schroeder, T.C., Mintert, J., and Koohmaraie, M.In-Store Valuation of Steak Tenderness.” American Journal of Agricultural Economics 83(2001):539–50.10.1111/0002-9092.00176Google Scholar
Lusk, J.L., and Shogren, J.F. Experimental Auctions: Methods and Applications in Economic and Marketing Research. Cambridge: Cambridge University Press, 2007.Google Scholar
Marette, S., Roosen, J., Blanchemanche, S., and Verger, P.The Choice of Fish Species: An Experiment Measuring the Impact of Risk and Benefit Information.” Journal of Agricultural and Resource Economics 1(2008):118.Google Scholar
Monchuk, D., Rousu, M., Shogren, J., Nonnemaker, J., and Kosa, K.Decomposing the Value of Cigarettes Using Experimental Auctions.” Nicotine & Tobacco Research 9(2007):93–99.10.1080/14622200601078392Google Scholar
O'Connor, R.J., Ashare, F.L., Fix, B.V., Hawk, L.W., Cummings, K.M., and Schmidt, W.C.College Students' Expectancies for Light Cigarettes and Potential Reduced Exposure Products.” American Journal of Health Behavior 31(2007):402410.10.5993/AJHB.31.4.717511575Google Scholar
O'Hegarty, M., Richter, P., and Pederson, L.L.What Do Adult Smokers Think about Ads and Promotional Materials for PREPs?American Journal of Health Behavior 31(2007):526–34.10.5993/AJHB.31.5.817555383Google Scholar
Pessemier, E.A.A New Way to Determine Buying Decisions.” Journal of Marketing 2(1959):41–46.Google Scholar
Pollay, R.W., and Dewhirts, T.The Dark Side of Marketing Seemingly ‘Light’ Cigarettes: Successful Images and Failed Fact.” Tobacco Control 11, Suppl 1(2002):i5i17.10.1136/tc.11.suppl_1.i511893810Google Scholar
Rousu, M., Huffman, W.E., Shogren, J.F., and Tegene, A.Estimating the Public Value of Conflicting Information: The Case of Genetically Modified Foods.” Land Economics 80(2004):125135.10.2307/3147148Google Scholar
Rousu, M., Huffman, W.E., Shogren, J.F., and Tegene, A.Effects and Value of Verifiable Information in a Controversial Market: Evidence from Lab Auctions of Genetically Modified Food.” Economic Inquiry 45(2007):409–32.10.1111/j.1465-7295.2007.00017.xGoogle Scholar
Rousu, M., Monchuk, D., Shogren, J., and Kosa, K.Consumer Perceptions of Labels and the Willingness to Pay for ‘Second-Generation’ Genetically Modified Products.” Journal of Agricultural and Applied Economics 37(2005):647–57.Google Scholar
Shiffman, S., Pillitteri, J.L., Burton, S.L., Rohay, J.M., and Gitchell, J.G.Smokers' Beliefs about ‘Light’ and ‘Ultra Light’ Cigarettes.” Tobacco Control 10, Suppl 1(2001a):i17i23.11740040Google Scholar
Shiffman, S., Burton, S.L., Pillitteri, J.L., Gitchell, J.G., Marino, M.E. Di, Sweeney, C.T., Wardle, P.A., and Koehler, G.L.Test of ‘Light’ Cigarette Counter-Advertising Using a Standard Test of Advertising Effectiveness.” Tobacco Control 10, Suppl. 1(2001b):i3340.10.1136/tc.10.1.3311740042Google Scholar
Shiffman, S., Pillitteri, J.L., Burton, S.L., and Marino., M.E. DiSmoker and Ex-Smoker Reactions to Cigarettes Claiming Reduced Risk.” Tobacco Control 13(2004):78–84.10.1136/tc.2003.00527214985602Google Scholar
Shogren, J., Shin, S., Hayes, D., and Kliebenstein, J.Resolving Differences in Willingness to Pay and Willingness to Accept.” The American Economic Review 84(1994):255–70.Google Scholar
Slade, J., Connolly, G.N., and Lymperis, D.Eclipse: Does It Live Up to Its Health Claims?Tobacco Control 11, Suppl 2(2002):ii6470.12034985Google Scholar
Teisl, M.F., Bockstael, N.E., and Levy, A.Measuring the Welfare Effects of Nutrition Information.” American Journal of Agricultural Economics 83(2001):133–49.10.1111/0002-9092.00142Google Scholar
Thrasher, J.F., Rousu, M., Ocampo-Anaya, R., Reynales-Shigematsu, L.M., Allen, B., Arillo-Santillan, E., and Hernandez-Avila., M.Estimating the Impact of Graphic Warning Labels on Cigarette Packs: The Auction Method.” Addictive Behaviors 32(2007):2916–25.10.1016/j.addbeh.2007.05.01817630221Google Scholar
Tomar, S. Can Tobacco Cure Smoking? A Review of Tobacco Harm Reduction: Hearings Before the Committee on Energy and Commerce. Testimony before the 108th Congress, 1st session. 2003.Google Scholar
Yue, C., Alfnes, F., and Jensen, H.J.Discounting Spotted Apples: Investigating Consumers' Willingness to Accept Cosmetic Damage in an Organic Market.” Journal of Agricultural and Applied Economics 41(2009):29–46.Google Scholar