Effect of advertising on cigarette consumption
There are two different views about the impact of cigarette advertising on cigarette consumption. Thetobacco industry argues that tobacco is a mature industry, and thus advertising affects only the marketshare of advertised brands and has no impact on aggregate demand for cigarettes. In comparison, thepublic health community argues that advertising has a positive effect on demand for cigarettes.Advertising is particularly effective in recruiting young smokers.The effect of cigarette advertising on cigarette consumption has been examined in three differentways:
(1) examining the impact directly, using either annual or quarterly national aggregateexpenditure over time or using cross sectional data;
(2) investigating the impact of an advertising banon demand for cigarettes; and
(3) studying the effect of counter advertising on smoking.
(1) examining the impact directly, using either annual or quarterly national aggregateexpenditure over time or using cross sectional data;
(2) investigating the impact of an advertising banon demand for cigarettes; and
(3) studying the effect of counter advertising on smoking.
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