TERM PAPER REPORT

ONConsumer Perception Related to Smoking

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Name: Rohan Shah

Semester: V

Roll No.: 49

Course: Bachelor of Business Administration(Hons)

Mentor: S. Lal

Topic: Consumer Perception related to smoking

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Table of Contents

Sl. No.

Description Page No.

1 Preface2 Acknowledgement3 Student’s Declaration4 Synopsis5 Introduction to the topic6 Objectives of the study7 Scope of the study8 Literature Review9 Research Methodology

10 Data Analysis and Interpretation11 Major Findings12 Conclusion13 Limitations of the study14 Scope for Further Research15 Bibliography16 Appendix

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Preface

In the broadest sense, a project report is necessary to make the students of the business school familiar with the external environment prevailing in the world. To be competitive and work aggressively, students need to know the policies, procedures and the trends going on in the present industrial world.

The purpose and objective of this term paper is to find out the perception of the consumers related to smoking and in the process, find out alternatives to smoking, the issues related to the ban of cigarettes, and how this perception can be used as a tool for analysis in the tobacco industry.

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Acknowledgement

I am highly indebted to the faculty of J.D. Birla Institute of Management for allowing me the opportunity to work on this term paper.

I would like to take the opportunity to thank my term paper mentor Prof S. Lal, for her indispensable help and support throughout the preparation of this term paper. Her suggestions and guidance have played a great hand in the making of this term paper.

This term paper would not have been possible without the help of multiple other people as well. I would like to thank everyone who had taken the survey made, as it plays a crucial role in understanding the general perception, and without which I would not have been able to arrive at any conclusion whatsoever.

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Student’s Declaration

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Synopsis

Title:

Consumer Perception related to Smoking

Objective:

To understand people’s perception related to smoking

To find alternatives to smoking

To understand why consumers smoke despite of knowing about its ill effects

To understand the issues related to the ban of smoking

To see how all the above information helps the industry in a positive or negative manner

Rationale:

These days, anti-smoking campaigns are being implemented aggressively and the general population is now aware of the ill effects caused by smoking actively or passively. However, it is strange enough to find that the sales of cigarettes are not taking a drastic downfall despite of all this. It is therefore important to understand the consumer’s perception related to smoking as this would be the most efficient tool to devise the future demands for such products as well as help the company take counter acting measures to deal with the issues that the industry faces.

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Introduction Cigarettes carry serious health risks, which are more prevalent than other tobacco

products. Nicotine, the primary psychoactive chemical in tobacco and therefore cigarettes, is addictive. About half of cigarette smokers die of tobacco related diseases and lose on average 14 years of life.

Second hand smoke has been shown to be injurious to bystanders, which has led to legislation that has prohibited smoking in many workplaces and public areas.

Smoking causes more than four in five cases of lung cancer. Lung cancer has one of the lowest survival rates of all cancers. As of a survey taken in late 2014 by The Times of India, more people are smoking in India now, 110 million, as compared to a mere 74.5 million over three decades back, despite smoking being recognized as the third biggest health risk for Indians and despite all the anti-tobacco and smoke free laws.

Despite strong awareness among people as to how harmful smoking cigarettes are, it is baffling that the industry has only gone from strength to strength in terms of rapidly increasing consumers.

India became a Party to the WHO Framework Convention on Tobacco Control on February 27, 2005.

Smoking is completely banned in many public places and workplaces such as healthcare, educational, and government facilities and on public transport.

Advertising through many forms of mass media is prohibited, but tobacco companies still may advertise at the point of sale, subject to some restrictions. There are some restrictions on tobacco sponsorship and the publicity of such sponsorship.

Health warning labels are pictorial and text; cover 40 percent of the front panel of the package parallel to the top edge; and are rotated every 24 months. Misleading packaging and labeling, including terms such as “light,” and “low-tar” and other signs, is prohibited.

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Objectives of The Study

To understand the perception of consumers towards smoking.

To understand why people, smoke, despite being aware of its ill effects.

To seek to understand what measures can be taken in order to curb smoking, if any.

To understand how the financial situation of the country will be affected and determine which industries/person(s) will be primarily affected by such curbing measures.

To understand if there is a perfect alternative to cigarettes.

To understand if the ban on sale of cigarettes is possible.

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Literature Review

Manju Rani In Her Article “Tobacco use in India: prevalence and predictors of smoking and chewing in a national cross sectional household survey” stated

“ There is a need for periodical surveys using more consistent definitions of tobacco use and eliciting information on different types of tobacco consumed. The study also suggests a need to adjust the prevalence estimates based on household informants. In India, tobacco consumption is responsible for half of all the cancers in men and a quarter of all cancers in women, in addition to being a risk factor for cardiovascular diseases and chronic obstructive pulmonary diseases.”

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Gavarasana S In His Article “A smoking survey of college students in India: implications for designing an antismoking policy” stated

“A survey of 599 college students was conducted in Andhra Pradesh, India, to formulate an anti-smoking policy for youth. There were 64.6% boys and 35.4% girls between 15 and 22 years, and 8.2% of students (n = 49, 48M + 1F) were smokers. It is a taboo for girls to smoke. There is no current anti-smoking policy and one is proposed based on the smoking survey results. The policy includes parental pressure to curb smoking, and a ban on (1) advertising of tobacco products, (2) smoking in public places and (3) teachers smoking in school. An increase in the price of cigarettes was approved by a majority of the students. The survey revealed a gap in the knowledge of students about the ill effects of smoking, which can be rectified by health education programs.”

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Research Methodology

Research DesignExploratory Method or Consumer Survey Method was used.

Data Collection

Source: Primary Data as well as Secondary Data.

Method: Data collection has been done through surveys.

Instrument: These surveys have been collected by way of structured questionnaires with the help of online google forms.

Sample

Size: 71 respondents for the first 12 questions and 49 respondents for the last three questions of the survey.

Sampling Area: The majority of the responses have come in from Kolkata, but since the survey was shared on a social networking websites and platforms, some of the responses are from other cities such as Mumbai, Hyderabad and Pune.

Sample Population: In order to make the survey as diverse as possible, it has been conducted among all age groups, and between men and women. The survey includes working adults as well as students, in order to understand the perception of smoking in general, rather than a fixed target market.

Sampling MethodConvenience sampling technique has been followed.

Interpretation Of The ResultThe results have been interpreted with the help of pie charts and bar graphs.

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Data Analysis and Interpretation

1) Demographic Profile

Males 38 53.5%

Females 33 46.5%

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2) Age Group

Below 18 4 5.6%

Between 18 and 30 56 78.9%

Above 30 11 15.5%

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3) Do You Smoke?

Yes 27 38%

No 44 62%

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4) Are you aware of the Ill-Effects of Smoking?

Yes 66 93%

No 2 2.8%

Not Completely 3 4.2%

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5) Do you think the sale of Cigarettes should be banned?

Strongly Agree 23 32.4%

Agree 10 14.1%

Neutral 18 25.4%

Disagree 9 12.7%

Strongly Disagree 11 15.5%

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6) If you do smoke, which type of Cigarettes do you prefer?

Preference 1st 2nd 3rd

16 14 2

22.5% 19.7% 2.8%

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Strong

Preference 1st 2nd 3rd

13 9 7

18.3% 12.7% 9.9%

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Mint

Preference 1st 2nd 3rd

3 9 17

4.2% 12.7% 23.9%

The above question aimed at understanding which type of cigarettes do the respondents prefer. We can conclude that the respondents prefer “mild” or “regular” cigarettes over the mint flavored ones. This shows that consumers don’t smoke for added taste, but are more inclined to cigarettes which have higher nicotine content. Cigarettes with higher nicotine content are more addictive, than the ones with lesser nicotine content. These are much more harmful for the lungs when consumed.

7. Does smoking relieve you of Stress? [Note: The respondents were asked even if they don’t smoke, what is their perception]20 | P a g e

Yes 29 40.8%

No 25 35.2%

Not Sure 17 23.9%

There were 27 respondents who smoke. This means there are 2 non-smokers who also feel smoking may be the key to relieve one of stress

8. Do you smoke only out of habit or only at times of high stress?

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Habit 6 8.5%

High Stress 12 16.9%

Both 17 23.9%

9. Do you feel E-Cigarettes should be promoted?

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Strongly Agree 1 14 19.7%

Agree 2 10 14.1%

Neutral 3 17 23.9%

Disagree 4 11 15.5%

Strongly Disagree 5 19 26.8%

10. Do you know the merits and demerits of E-Cigarettes as compared to smoking?

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Yes 40 56.3%

No 31 43.7%

11. Do the “NO SMOKING” ad campaigns in television and films affect your perception towards smoking in anyway?

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Yes 12 16.9%

No 13 18.3%

It has a very strong impact 7 9.9%

The impact is for a very short while

17 23.9%

Where 19 respondents feel that the “No smoking” ad campaign is effective, 30 respondents feel that the ad campaigns feel that either the impact is too short to be of any use, or there is no impact at all. An interesting thought that came in my mind while preparing this data was that although advertising cigarettes is banned, this “No Smoking” ad campaign may just serve to be a form of surrogate marketing done by the government without them knowing it.

12. Do these advertisement campaigns hinder your television/movie viewing experience?

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Yes 13 18.3%

Not Really 31 43.7%

Unsure 5 7%

13. Are you satisfied with the steps the government is taking to curb smoking?

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Yes 13 18.3%

I am unaware as to what they are doing

9 12.7%

They can do much more 27 38%

14. Do you fell Alcohol is equally harmful as smoking?

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Smoking is more harmful considering people who don't smoke are still prone to passively inhaling the smoke

22 31%

Alcohol consumption is more harmful, as it may put the lives of others at risk as well

8 11.3%

Both are equally harmful, and strict measures should be taken against both of them

19 26.8%

The respondents are aware of passive smoking, and feel that smoking is comparatively more harmful as even someone who does not smoke may be prone to risks due to passive smoking. An almost equally strong percentage of the respondents feel that alcohol and cigarettes consumption are both equally bad, and strict measures should be taken against both of them.

Major Findings

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The ill-effects of smoking cigarettes are clearly known. There are very few who have ill-equipped knowledge about it.

The survey clearly showed that the smokers themselves were well aware of the harmful effects of smoking, yet they intentionally resort to it.

As was shown previously, there are some smokers who feel neutral or agree with the ban on sale of cigarettes. This clearly shows that smokers may want to give up smoking, but the easy availability and cheap prices may keep luring them to purchase the product.

Consumers mainly smoke not for the taste of the cigarettes, but due to the nicotine contained. The consumers are more inclined to cigarettes with higher level of nicotine. However, the higher the level, the more harmful it is for the consumer.

The perception of the consumers (even the non-smokers) is that smoking helps in relieving a person of stress.

Majority of the smokers smoke out of habit as well as to remove stress.

There are still quite a few people who are not well aware about e-cigarettes.

The “No Smoking” ad campaigns are not very effective. As a matter of fact, smoking scenes in films before were not particularly impactful. But now, since the statutory warning has become mandatory, every movie which has a smoking scene has become famous for it, which in a way is promoting smoking, although in a negative way.

Issue Related to Ban On Sale of Cigarettes

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The proposal to amend Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution Act, 2003 was deferred at a meeting called by Parliamentary Affairs Minister M Venkaiah Naidu with health, commerce, chemicals and agriculture ministers in attendance.

It was decided that till the time tobacco farmers are provided with an alternative crop for their sustenance, the amendments will not be brought about. Tobacco is a cash crop that generates Rs 6000 crore annually only from exports as India is the second largest tobacco growing country in the world, the health minister was told.

The ban of loose cigarettes was that the move could push tobacco users towards chewable tobacco and bidi, which are more harmful. "Without providing suitable alternative cash crops in tobacco and areca nut-growing areas, farmers should not be penalized by introducing drastic regulatory measures," was the feeling that emerged.

The government had earlier accepted a new tougher framework for tobacco sale as part of recommendations of an expert panel which prompted it to also consider raising the minimum age of those who can be sold tobacco products to 25 years from the current 18.

Another proposal under consideration was increasing the fine for smoking in public and violation of other provisions of the Cigarettes and Other Tobacco Products Act, 2003.

E-Cigarettes

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They are battery powered vaporizer that has a similar feel to tobacco smoking. They do not contain tobacco, although they do use nicotine from tobacco plants. The benefits and risks of using e-cigarettes are still uncertain.

Their role in tobacco harm reduction as a substitute for tobacco products is unclear. They may carry a risk of addiction in those who do not already smoke. This form of cigarette has not been approved or promoted by any government as a substitute to smoking.

The nicotine inside the cartridges of e-cigarettes is addictive. When you stop using it, you can get withdrawal symptoms including feeling irritable, depressed, restless and anxious. It can be dangerous for people with heart problems.

So far, evidence suggests that e-cigarettes may be safer than regular cigarettes. The biggest danger from tobacco is the smoke, and e-cigarettes don't burn. Tests show the levels of dangerous chemicals they give off are a fraction of what you'd get from a real cigarette. But what's in them can vary.

E-cigarettes have triggered a fierce debate among health experts who share the same goal -- reducing the disease and death caused by tobacco. But they disagree about whether e-cigarettes make the problem better or worse.

Majority of the people smoke as they feel it helps them face stress and it makes them feel light and more confident. Smoking reduces a person’s appetite. So when a smoker quits smoking, his appetite increases considerably. E-Cigarettes does not produce the same effect. People are not relieved of their stress, and so e-cigarettes are not considered as the best substitute.

Limitations of The Study

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Due to timing constraints, there could be no form of survey where direct interaction/communication was possible.

The respondents may have filled the responses in a hurry, due to which the analysis may not be perfectly accurate.

Respondents were not ready to mention their names for the survey. This meant that segregation as to age group, gender, etc. was not possible.

Due to personally knowing some of the respondents, clearly the survey has not been truthfully filled by some of them, despite no need to mention the name while filling the survey.

Scope for Further Work

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With more time in hand, a much greater number of respondents can be ensured, resulting in a much more accurate and well-rounded survey.

The same study can be conducted with the incorporation of various other products which are consumed, but ultimately result in nothing but internal damage.

There can be more personal communication with the respondents, especially the ones who smoke, trying to understand more in depth their perception, and coming to conclusions suggested by them, in order to take some measures in order to prevent people from smoking, which will hence result in a much safer environment.

Conclusion

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Indian Finance Minister Arun Jaitley proposed raising taxes on cigarettes by at least 15%. Due to this, ITC plunged 8.2%, the biggest drop since January 2008. Cigarette prices in India have more than doubled since 2010, and this budget marks the fourth consecutive year of excise duty increases.

Even as the government raises taxes on ITC’s biggest profit-generating product, investors continue to remain bullish, with 42 of the 47 brokerages recommending investors buy the stock. As smokers are unlikely to be significantly deterred by higher prices, ITC remains one of the top picks among consumer goods makers in India. ITC will pass on these tax increases and consumers will still keep buying.

It may be easy to say that we should ban the sale of cigarettes. However, India is one of the largest exporters of tobacco. Apart from that, there are a lot of people in India who are employed due to the tobacco industry.

Even if an alternative is found, it will not be easy to provide all those in the tobacco industry with permanent jobs.

The ill-effects of smoking are known to everyone, yet people still purchase cigarettes even if the prices are increased. The perception of the consumers is clear-increasing the prices will not have much of an effect on the consumers. The tobacco industry is one of the largest industries of India.

Appendix

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The survey was taken in the form of a questionnaire.*Required

Gender*

Male

Female

Age Group*

Less Than 18

18-30

More Than 30

Do You Smoke?*

Yes

No

Are You Aware of The Ill-Effects Of Smoking? *

Yes

No

Not Completely

Do You Think The Sale Of Cigarettes Should Be Banned?

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

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If You Do Smoke, Which Type of Cigarettes Do You Prefer?

First Second Third

Mild

Strong

Mint

Does Smoking Relieve You of Stress? [Even If You Don’t Smoke, What Is Your Perception?] *

Habit

High Stress

Both

Do You Feel E-Cigarettes Should Be Promoted?*

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

Do You Know The Merits Or Demerits Of E-Cigarettes As Compared To Smoking?*

Yes

No

Do the "No Smoking" ad campaigns in televisions and films affect your perception towards smoking in anyways? *

Yes

No

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It Has a Very Strong Impact

The Impact Is For A Very Short While

Do these advertisement campaigns hinder your television/movie viewing experience? *

Yes

Not Really

Unsure

Are you satisfied with the steps the government is taking to curb smoking? *

Yes

I Am Unaware as to What They Are Doing

They Can Do Much More

Do you feel alcohol is as equally harmful as smoking? *

Smoking Is More Harmful Considering People Who Don’t Smoke Are Still Prone to Passively Inhaling the Smoke

Alcohol Consumption Is More Harmful, As It May Put the Lives of Others at Risk as Well

Both Are Equally Harmful, And Strict Measures Should Be taken Against Both of them

Bibliography

This term paper was done through the collection of both-primary and secondary research. The secondary research was mainly collected from websites such as:

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http://timesofindia.indiatimes.com/

http://www.tobaccocontrollaws.org/

http://www.legacyforhealth.org/

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