Authors : Deepak Sukardhan Ram, Robert Jeyakumar Nathan and Audrey Ann Balraj
Abstract: This study investigates the purchase factors for a product with inelastic demand in the tobacco sector, specifically looking at cigarettes. Literatures in marketing and consumer behavior suggest that consumer’s intention of purchasing a product is significantly influenced by factors such as media advertisements, brand, perceived value, product image and product quality. Tobacco companies in particular are in a limbo as they try and expand their business and achieve sales targets, despite ythe attempts of most governments and NGOs to de-market tobacco products. The aim of this study is to know the pattern of cigarette purchase behavior of smokers. From literatures, four factors were selected and measured as direct contributors to cigarettes purchase. Three hundred respondents participated in this research, selected via purposive sampling method and voluntary participation of respondents. Data collection was quantitatively analysed using SPSS 20.0. The study found all four factors to significantly predict consumer purchase intention of cigarettes, i.e., media, brand, perceived value and product quality. These significant findings are a double-edged sword; as they can be used both by the tobacco industry that is trying to promote their products despite the de-marketing efforts surrounding it as well as by those who are trying to prevent consumers from buying tobacco products altogether such as policy makers, government and NGOs promoting health. Based on the findings, several recommendations are put forth for the industry as well as to government and policy makers.
Deepak Sukardhan Ram, Robert Jeyakumar Nathan and Audrey Ann Balraj, 2017. Purchase Factors for Products with Inelastic Demand: A Study on Tobacco Sector. Journal of Engineering and Applied Sciences, 12: 1754-1761.