Smaller Cigarette Pack as a Commitment to Smoke Less? Insights from Behavioral Economics

Abstract

Cigarettes are commonly sold in packs of 20 units and therefore little is known about the potential impact of pack size on consumption. Using insights from behavioral economics, we suggest that cigarette packs smaller than the standard size may help some smokers cut back and/or quit, consistent with their long-term goals. Results from an online hypothetical purchase experiment conducted in a sample of US smokers reveal that over a third of smokers are willing to pay a price premium to purchase in smaller quantities. Further, a desire to quit smoking and high self-control is associated with preference for a smaller pack. While we provide some preliminary evidence that smaller packs may be beneficial to certain types of smokers, further research should be conducted to assess whether the smaller pack size should be considered in the arsenal of tobacco control policies to help current smokers quit (JEL: I18; I12; D12)

How tobacco companies have used package quantity for consumer targeting

“…This accords with a prior study finding that many consumers—particularly those who see themselves as impulsive—prefer to purchase ‘vices’ in small quantities in order to try to constrain consumption 250. Research on US smokers’ theoretical willingness-to-pay for 10-packs also suggests a desire to ration consumption 251. However, it is also possible that the availability of small packs would tempt people to make purchases that they would not have made if only larger packs were available, as small packages may ‘fly under the radar’ of people’s self-control efforts 252.…”

Combustible cigarettes cost less to use than e-cigarettes: global evidence and tax policy implications

“…Especially in LMICs, or even many low-income consumers in HICs, there is a strong likelihood that the $25 price for an entry-level rechargeable e-cigarette might be out of the typical smoker's reach. Alternatively, some smokers have been observed to prefer purchasing smaller quantities of cigarettes as a method of self-control,23 but we do not yet have sufficient data to evaluate if this behaviour translates similarly towards preferring to spend more money on an expensive rechargeable e-cigarette. Future research will need to examine this dynamic.…”

Cigarette brand diversity and price changes during the implementation of plain packaging in the United Kingdom

“…Price segmentation has been identified in the literature as an industry strategy to overshift increases in prices , while pack size has been identified as an instrument to increase sales and affect cigarette consumption . For the analysis by pack size we categorized products by the number of cigarettes in a pack (10, 11–19 and 20 or more) and the number of packs (single or multi‐pack).…”