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Using Experimental Auctions to Examine Demand for E-Cigarettes.

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Area of Science:

  • Consumer behavior research
  • Tobacco harm reduction
  • Public health

Background:

  • Electronic cigarettes (e-cigarettes) represent a new category of potentially reduced exposure products.
  • These products have attracted considerable interest from individuals who smoke traditional cigarettes.

Purpose of the Study:

  • To estimate the demand for e-cigarettes among smokers.
  • To evaluate the influence of advertising on smokers' willingness to pay for e-cigarettes.

Main Methods:

  • Experimental auctions were employed to assess demand and advertising impact.
  • The use of actual auctions minimizes hypothetical biases common in survey-based research.

Main Results:

  • Smokers demonstrated a clear demand for e-cigarettes.
  • Print advertisements were more effective than video advertisements in increasing demand for disposable e-cigarettes.
  • Demand was higher for reusable e-cigarettes compared to disposable ones.
  • Higher demand was observed among non-white participants and those willing to pay more for traditional cigarettes.

Conclusions:

  • Cigarette smokers are interested in e-cigarettes as substitutes for conventional products, with a preference for reusable options.
  • Advertising and messaging strategies can effectively influence this demand.
  • The appeal of these potentially reduced harm products suggests a significant opportunity for harm reduction if smokers transition completely.