Quantifying brand loyalty: Evidence from the cigarette market.
Brand loyalty
Cigarettes
Taxes
Journal
Journal of health economics
ISSN: 1879-1646
Titre abrégé: J Health Econ
Pays: Netherlands
ID NLM: 8410622
Informations de publication
Date de publication:
09 2021
09 2021
Historique:
received:
15
09
2020
revised:
29
07
2021
accepted:
30
07
2021
pubmed:
25
8
2021
medline:
25
11
2021
entrez:
24
8
2021
Statut:
ppublish
Résumé
We exploit a quasi-experiment created when New York State began in 2011 to tax cigarettes sold on Native American Reservations. The regime change represents a unique opportunity to quantify brand loyalty because it almost doubled the price of premium-brand cigarettes, while Native brands were still untaxed. We use data from two different sources-the New York State Adult Tobacco Survey and the Nielsen Homescan Panel. We find that the increase in relative prices led to substantial declines in premium cigarette purchases. However, even among the premium consumers with the most to gain from switching, about three-quarters remained brand loyal.
Identifiants
pubmed: 34428632
pii: S0167-6296(21)00097-7
doi: 10.1016/j.jhealeco.2021.102512
pmc: PMC8449822
mid: NIHMS1735071
pii:
doi:
Types de publication
Journal Article
Research Support, N.I.H., Extramural
Langues
eng
Pagination
102512Subventions
Organisme : NIDA NIH HHS
ID : R01 DA042064
Pays : United States
Informations de copyright
Copyright © 2021. Published by Elsevier B.V.
Déclaration de conflit d'intérêts
Declaration of Competing Interest None.
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