Impact of tobacco industry pricing and marketing strategy on brand choice, loyalty and cessation in global south countries: a systematic review

Int J Public Health. 2020 Sep;65(7):1057-1066. doi: 10.1007/s00038-020-01422-2. Epub 2020 Jul 25.

Abstract

Objectives: We undertook this review to assess the impact of pricing strategies on brand choice, loyalty and quitting behaviour in Global South countries.

Methods: We systematically retrieved articles from Medline, CENTRAL, ScienceDirect, Google Scholar from inception up to January 2020. Studies which reported tobacco industry's pricing strategies were eligible. We summarized the data as themes and codes using the principles of inductive qualitative thematic analysis within structured rational constructivist framework.

Results: In total, 13 studies met inclusion criteria were included. Major strategies adopted by tobacco industries to tackle the pricing and taxation changes were increased tax absorption, differential taxation based on price, cigarette length/size which ensures modest increase in the net price of cigarettes. This in turn influences the tobacco users in terms of brand loyalty and switching as they prefer to stay with factory-made cigarettes or shift to a cheaper alternative or illegal product rather than decreasing/quitting tobacco use.

Conclusions: Absorption of excise tax and differential taxation are the common pricing strategies adopted by tobacco industries in Global South. These strategies together with external determinants impact the price-related tobacco control interventions.

Keywords: Brand loyalty; Pricing strategy; Systematic review; Taxes; Tobacco control; Tobacco industry.

Publication types

  • Systematic Review

MeSH terms

  • Adult
  • Aged
  • Aged, 80 and over
  • Costs and Cost Analysis / economics*
  • Costs and Cost Analysis / statistics & numerical data
  • Female
  • Humans
  • Male
  • Marketing / economics*
  • Marketing / statistics & numerical data
  • Middle Aged
  • Smoking Cessation / economics*
  • Smoking Cessation / statistics & numerical data
  • Taxes / economics*
  • Taxes / statistics & numerical data
  • Tobacco Industry / legislation & jurisprudence*
  • Tobacco Industry / methods*
  • Tobacco Industry / statistics & numerical data
  • Tobacco Products / economics*
  • Tobacco Products / statistics & numerical data