Advertising and product launch strategies in the light of tobacco advertising legislation

Caroline Elliott and Pamela Lenton

This short paper aims to increase understanding of tobacco companies’ advertising strategies. Time series data and intervention analysis methods are used to investigate whether tougher tobacco advertising legislation and the threat of such legislation result in firms significantly changing their advertising activities in the period preceding the enactment of legislation.

Advertising and Product Launch Strategies in the Light of Tobacco Advertising Legislation

Caroline Elliott Lancaster University

Pamela Lenton University of Sheffield

INTRODUCTION

Many factors have been identified as potentially affecting demand for tobacco and cigarettes, including price, income, taxes, anti-smoking campaigns, advertising and advertising bans. Stewart (1993), Bardsley and Olekalns (1999), Saffer and Chaloupka (2000), Gallet (2003) and Nelson (2003) provide recent contributions to this literature. This paper instead focuses attention on the factors determining tobacco companies' advertising strategies as, despite the extensive literature on the effect of advertising on tobacco consumption, there remain relatively few studies that...

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