Promoting cigarette brands on TV shows pays off
Informed newspaper Marketing science New key points of the study:
● TV product placement for cigarette brands increases retail sales of the brand seen on screen, its direct competitors and cigarettes in general.
● The results show that the result of product placement is not just to get smokers to switch cigarette brands, but to get people to smoke, period.
● Cigarette manufacturers face strict regulations on how they can promote; Television product placement keeps the business booming.
BALTIMORE, MD, October 26, 2022 – New research in the journal INFORMS Marketing science, conducted by researchers at the University of Chicago and the University of Washington, finds that a 10% increase in television product placement for cigarettes increases sales by 2% for the tobacco brand displayed on the screen. screen. Furthermore, it also has the same effect on the sales of its direct competitors.
The study, “Show and Sell: Studying the Effects of Branded Cigarette Product Placement in TV Shows on Cigarette Sales,” notes that prior literature illustrates the strict U.S. government regulations on promotional activities of cigarette brands, as smoking is considered a public health problem. problem. For the most part, these cigarette brands can no longer do mass advertising, including TV commercials, billboards, or sports sponsorships. However, these brands still benefit from TV product placement, which allows them to be seen by millions of American viewers.
“When people see product placement for a particular brand like Marlboro, retail sales of Marlboro products increase. However, what is more surprising is that sales of other competing cigarette brands (Camel, Parliament , Newport, etc.) are also increasing,” says Pradeep Chintagunta of the University of Chicago. “This indicates that product placement is not just about getting people to switch brands of cigarettes, but about getting people to smoke more in general.”
The researchers combined NielsenIQ PlaceViews product placement data with NielsenIQ Ad Intel data and then measured the exposure of consumers in different markets to tobacco product placement. This information was then merged with in-store sales data from Information Resources, Inc., to measure the impact of product placement on cigarette sales.
“We find that this type of product placement increases the volume of cigarette sales. If regulators want to find additional ways to reduce smoking rates, reducing product placement for cigarette brands could be a successful option,” says Ali Goli, assistant professor at the Foster School of Business at the University of Washington.
The study, led by Chintagunta and Goli, alongside Simha Mummalaneni of the University of Washington and Sanjay Dhar of the University of Chicago, urges lawmakers to restructure cigarette promotion regulations based on these findings. .
About INFORME and Marketing science
Marketing science is a leading, peer-reviewed, research-driven academic marketing journal using quantitative approaches to study all aspects of the consumer-business interface. It is published by INFORMS, the leading international association for decision and data sciences. More information is available at www.informs.org Where @informed.
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