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How do smokers control their cigarette expenditures?

Victoria M White1, Elizabeth A Gilpin, Martha M White

  • 1Centre for Behavioural Research in Cancer, The Cancer Council Victoria, Australia.

Nicotine & Tobacco Research : Official Journal of the Society for Research on Nicotine and Tobacco
|August 9, 2005
PubMed
Summary
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Smokers use strategies like buying cheaper brands or from cheaper stores to save money. However, reducing cigarette consumption saves more money than these price-minimizing tactics.

Area of Science:

  • Public Health
  • Health Economics
  • Tobacco Control

Background:

  • High cigarette prices pose a challenge for smokers seeking to manage expenditures.
  • Smokers employ two primary strategies: limiting consumption or seeking cheaper cigarettes.

Purpose of the Study:

  • To investigate smokers' use of consumption-limiting and price-minimizing strategies.
  • To determine if price-minimizing strategies can offset rising cigarette prices without reducing consumption.

Main Methods:

  • Analysis of data from 5,109 California smokers from the 2002 California Tobacco Survey.
  • Logistic regression to identify users of different strategies.
  • Multiple linear regression to quantify savings from price-minimizing strategies.

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Main Results:

  • 74.1% of smokers used at least one price-minimizing strategy (e.g., cheaper brands, outlets, cartons).
  • Price-minimizing strategies significantly reduced price per pack, with carton purchasers saving $1.01/pack and low-tax source buyers saving $1.23/pack.
  • Reducing consumption by 3 cigarettes/day yielded greater monthly savings ($18.00) than price-minimizing strategies ($6.00-$12.00).

Conclusions:

  • While price-minimizing strategies offer savings, reducing cigarette consumption provides more substantial financial benefits.
  • Substantial cigarette tax increases are likely effective in reducing overall smoking expenditures and consumption.