The use of in-store coupons or other price-related discounts by major cigarette manufacturers*
| PM | RJR | LORILLARD (Newport only) | Other companies† | |
|---|---|---|---|---|
| Prevalence of brand use (%) | 43.4 | 23.9 | 15.0 | 17.7 |
| Prevalence of coupons or discounts used by smokers of that manufacture (%) | 24.4 | 21.0 | 13.7 | 11.1 |
| Price reduction per pack for smokers of that manufacture ($) | −0.29‡ | −0.29‡ | −0.24§ | −0.23 |
| Average price per pack for smokers of that manufacture ($) | 5.06 | 4.63 | 4.75 | 3.94 |
| Percentage of discount rendered to smokers of that manufacture (%) | 5.7 | 6.3 | 5.1 | 5.8 |
| N | 4850 | 3274 | 960 | 2682 |
Notes: N represents unweighted sample size. All estimates were obtained with post-stratification weights. In regressions, the dependent variable is price paid per pack, and the variable of interest is whether using coupons, rebates, buy-one-get-one-free, two-for-one or any other special promotions for cigarettes in the most recent purchase. Control variables include demographic characteristics (race, age, gender, education, marital status and employment status), state dummy variables, whether the respondent is a daily smoker, time to first cigarette since wake up, and all other price-minimisation behaviours (ie, purchase of generic brands, purchase of cartons, purchase on Indian reservation or purchase through the internet). Percentage of discount rendered is obtained by dividing average price per pack with price reduction associated with coupons and other price-related discounts.
*The self-reported use of coupons or other price-related discounts only reflects direct-to-consumer discounts from the industry. Therefore, industry's promotional allowances directly paid to retailers or wholesalers are not included.
†Users of Sonoma, USA Gold brands and other brand names which are not listed in the survey.
‡Statistically significant at 5% level.
§Statistically significant at 10% level.
PM, Philip Morris; RJR, R.J. Reynolds.