Impact of Pictorial and Text Warning on Demand of Cigarettes

DECLARATION

It is hereby declare that the research topic entitled survey on “Impact of packaging and leveling
of consumer behavior and demand of cigarette” submitted for the degree of Master of Business
Administration, is our original work and the project report has not formed the basis for the
award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been
submitted to any other university or institution for the award of any degree or diploma nor given
to any publications.

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ACKNOWLEDGEMENT

Survey is an excellent tool for learning and exploration. No classroom routine can substitute
which is possible while working in real situations. Application of theoretical knowledge to
practical situations is the bonanzas of this survey.

Without a proper combination of inspection and perspiration, it’s not easy to achieve anything.
There is always a sense of gratitude, which we express to others for the help and the needy
services they render during the different phases of our lives. I too would like to do it as I really
wish to express my gratitude toward all those who have been helpful to me directly or indirectly
during the development of this project.

We would like to thank our teachers Mr. Falak and Dr. MUSHTAQ AHMAD KALASRA Sb
who were always there to help and guide us when we needed help. His perceptive criticism kept
us working to make this project more full proof. We are thankful to him for his encouraging and
valuable support. Working under him was an extremely knowledgeable and enriching experience
for us. We are very thankful to him for all the value addition and enhancement done to us.

Above all we shall thank our friends of section D who constantly encouraged and us so that we
would enable to do this work successfully.

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Table of Contents

INTRODUCTION

Executive Summary

LITERATURE RIVIEW

OBJECTIVES OF THE RESEARCH:

METHODLOGY

RESEARCH APPROACH

Secondary Data:

Primary Data:

TOOLS FOR DATA COLLECTION:

SAMPLING PLAN:

DATA ANALYSIS BASED ON QUESTIONNAIRES

Hypothesis:

Conclusion

LIMITATION S OF THE RESEARCH

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IMPACT OF PICTORIAL AND TEXT WARNING ON

INTRODUCTION
Cigarette smoking is associated with an increased propensity for intracoronary thrombus
formation that is mainly related to platelet activation. Because platelet activation and aggregation
are crucial events in the path physiology of acute coronary syndromes (ACS), a substantial
proportion of patients with ACS are current or former cigarette smokers. Although the influence
of smoking status on outcome has been well-characterized among patients with persistent ST-
segment elevation, there are few recent data regarding smoking status and outcome of patients
with ACS without persistent ST-segment elevation.

Moreover, until recently weak platelet inhibitors such as aspirin have been the mainstay
antiplatelet treatment for ACS. These agents have a limited effect on platelet aggregation and
accumulation in the coronary artery, especially when associated with cigarette smoking.
Eptifibatide, a synthetic cyclic heptapeptide, is a high affinity and selective inhibitor of the
platelet glycoprotein IIb/IIIa receptor. It inhibits ex vivo platelet aggregation in a dose-dependent
manner and has been shown to reduce the acute ischemic complications of percutaneous
coronary intervention. More recently, the Platelet Glycoprotein IIb/IIIa in Unstable Angina:
Receptor Suppression Using Integrating Therapy (PURSUIT) trial persistent ST-segment
elevation. Because platelet activation is enhanced in smokers, the clinical benefit of treatment
with eptifibatide may be particularly pronounced among cigarette smokers with ACS.

This research state that the impact of impact of packaging and labeling on consumer behavior
and demand of cigarette. It proposes an approach that examines the relationship with the
consumers towards different text and pictorial warnings imposed on cigarette packets. An
illustration of application of this approach demonstrates its usefulness in assessing the
effectiveness of these warnings on consumer’s behavior and demand of cigarette.

Executive Summary
Our research is on impact of packaging and labeling on consumer behavior and demand of
cigarettes. Since we know that consumption of cigarettes leads to various diseases .To control it
Government of India passed various policies like creation of no smoking zones and

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implementation of warning text and pictures on cigarette packets. So we want to know that how
much the pictorial warnings affected the consumer behavior and demand of cigarettes.

We have conducted this research with the help of questionnaire method to get primary data. Our
sampling frames are smokers only, from them fifty samples are taken as a part of our research.
We have used convenient sampling method to select our samples. All our samples our from KIIT
SCHOOL OF MANAGEMENT , BHUBANESWAR, and most of our samples are between age
group 18 yr to 35 yr.

Statistical tool that is used to interpret the data that we got from our research work are chi-square
test and frequency distribution table. We have taken help of five hypotheses to support our
finding and conclusion. In our research we have taken help of SPSS software to find out the
result of chi square test and to get frequency distribution table and charts.

From our sample most of the sample has been smoking for the last 1 to 5 years and they started
smoking for relaxation or to get relief from stress. Only 24 are affected by the warning labels.
Majority of our sample chose Gold Flake as their preferred brand. They prefer their brand based
on filter quality followed by length, price and at last come packaging.

Most of the consumers are not buying cigarette in packets rather they are buying loose cigarettes
in our sample half of the respondent purchase cigarettes in packets and other half purchase loose
cigarettes, so this is one of the main factor that warning labels are not having much affect to their
consumers .Even only 16% of our sample see this warning labels always. Only 2 % of our
respondent thinks of quitting cigarettes due to these warning labels. One interesting point that we
got from our respondent’s reply is that this warning labels are printed in that part of cigarette
packets which is usually get covered by the users palm or finger so most of our respondent can’t
able to see it every time or they can easily ignore it .Around 50 % of our sample avoid looking at
warning labels.40% of our respondent’s family restrict them from smoking. Another interesting
result we got from our research is that packets with pictorial warning labels will drive 48 % of
our respondent negatively.

So to conclude we can say that the other government policies or the packaging of cigarettes and
consumption of cigarettes are not having any significant relation. The consumers are not at all
getting repelled by the warning labels at all.

Hence pictorial and text warnings on cigarette packets are not having much impact on consumer
behavior and demand of cigarettes.

Showed that potent platelet inhibition with eptifibatide improved outcome in patients with ACS
without.

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LITERATURE RIVIEW
Here the answers to the following question are searched for: What kind of packets with warning
attracts the attention of young smokers? Regular or plain white? 401 teenagers between 14- 17
years from a mall were selected randomly. They were shown 3 types of warning labels:
"Smoking can kill you." "Cigarettes are addictive," and "Tobacco smoke causes fatal lung
disease in nonsmokers." On two types of packets: branded colored packets and plain white
packets. After that it is counted how many remembers which type of warning on which type of
packets. The result obtained here shows that plain packets with warning are more effective than
regular branded packets with warning.

Impact of graphic Canadian cigarette labels warning labels have been researched with
the help of 616 sample smokers. The research results says that 1% started smoking more, one
fifth of the sample decreased their smoking rate, 44% responded negatively (emotionally), 30%
of them attempted to avoid the warnings. As a result it is been said that policy makers should not
be reluctant to introduce vivid or graphic warnings for fear of adverse effect.

Here in this research the answer to following question is searched for:

What is the best packaging and label possible that will have a negative impact on cigarette
consumption?

To answer the above question the main objective followed by the researcher are to measure
the various changes in labeling that effects cigarette consumption. Eg. - Font, color, size, etc.
The methodology used in this research was Controlled testing (Laboratory).Here 41 participant
were chosen who have newly started smoking and their view was noted. The hypotheses were
tested with a 3 (format types) x 2 (message content statements) x 2 (advertisement types)
experimental design in a laboratory setting. The three format levels used are "current," "mild"
change and "severe" change. In a manipulation check carried out prior to running the experiment,
subjects rated the "severe" change above the "mild" change format level in terms of degree of
difference from current format. The result that is founded by the researcher was:

* Packaging (not necessarily white).

* Brand name will be there.

* The warning label is to cover 30%-50% of the entire packet.

* The font should be large and be written in Red.

* This way it captures maximum attention and impact.

This research explored smokers’ reactions to pictorial warnings on cigarette packaging, and
compared these to new and existing text-only warning labels. Purposive sampling yielded a
sample of 310; each respondent saw one of five warning labels and their affective, cognitive and
behavioral responses were measured during structured interviews. Respondents perceived the
pictorial warning labels to be more credible and effective than the text-only versions, but not
more fear inducing. The pictorial warnings elicited higher levels of cessation related behaviors
and were perceived as better deterrents to non-smokers than any of the text-only warnings.

The 2009 Family Smoking Prevention and Tobacco Control Act require cigarette packages to
contain stronger warnings in the form of color, graphic pictures depicting the negative health
consequences of smoking. The authors present results from a between-subjects experiment with
more than 500 smokers that test (1) the effectiveness of pictorial warnings that vary in their
graphic depiction of the warning and (2) an underlying mechanism proposed to drive potential
effects of the manipulation of the graphic depiction. The findings indicate that more graphic
pictorial warning depictions strengthen smokers’ intentions to quit smoking. Recall of warning
message statements is reduced by moderately or highly graphic pictures compared with a no-
picture control or less graphic pictures. The results also show that the graphic warnings affect
evoked fear, and in turn, fear mediates the effects of the graphic warning depiction on intentions
to quit for the sample of smokers. This pattern of results indicates that though highly graphic
pictures may reduce specific message recall and limit the direct effect of recall on intentions to
quit, highly graphic pictures increase intentions to quit smoking through evoked fear (i.e., fear
fully mediates the effect of the graphic depiction level). The authors discuss implications for
consumer health and policy decisions.

OBJECTIVES OF THE RESEARCH:

* What kind of packaging and graphical/textual Warning labels has the maximum negative
impact on consumer minds?

* Do cigarette consumers at all pay attention to the packaging and warning labels?

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Problem definition:

Is there any effect of pictorial and text warning on the demand of cigarettes?

METHODLOGY
RESEARCH APPROACH

The research for this study is a Descriptive Research. A Descriptive Research is a type of
conclusive research, which has its major objective. As the description or something, usually
market characteristics or functions. It is preplanned and structured.

Under this approach a cross-sectional study is conducted in which one sample of respondents is
drawn from the target population and information is obtained from this sample one. This study is
based on descriptive research approach comprises the following methods;

Secondary Data:

Secondary data refers to that which is compiled by some other than the other researcher for
purpose not directly related to the research. These are readily available for processing. This type
of data relate to past period.

The sources used for such data types are as follows:

• Published materials such as periodicals and books like business research journals

• Computerized databases such as internet databases and off-line databases

Primary Data:

Primary data refers to the data gathered for a specific purpose or for a specific research project.
These data gives latest information. This type of data is obtained from original sources. In this
study, primary data is collected through Questionnaire Method.

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Purpose of study:
Exploratory study

Type of investigation:
Co relational study

Researcher interference:
Minimal interference

Study setting:
None contrived and it is a field study.

Unit of analysis:
Individual

Time Horizon:
Longituditional study

Variable:
Dependent: demand of cigarette.

Independent: showing of pictorial and text warning

And other demographic factors like age, profession etc.

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TOOLS FOR DATA COLLECTION:

The approved questionnaire is the main tool used for data collection in this study. The
questionnaire consists of structured and unstructured questions.

The questionnaire tool is mainly used because:

• Both qualitative and quantitative information can be gathered.

• Factual survey can be done.

• Opinion survey in order to secure personal opinions or on a particular matter can be done
effectively. This tool is administered through personal interview with the target population.

SAMPLING PLAN:

1. Sampling Unit
The sampling unit consists of individuals and faculties for analyzing the advertising effectiveness
on consumers.

2. Sampling Procedure
How should the respondents be chosen?

The sampling technique chosen are random sampling methods and convenient sampling
methods.

3. Sample Size
How many respondents to be surveyed ?

There are 30 respondents of layyah city

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DATA ANALYSIS
The following data analysis tools were used for the primary data, which was collected

Using structured closed ended.

Frequencies

Statistics

why do you smoke

N Valid 31

Missing 0

Mean 1.9677

why do you smoke

Cumulative
Frequency Percent Valid Percent Percent

Valid for show off 8 25.8 25.8 25.8

for relaxation 16 51.6 51.6 77.4

for addiction 7 22.6 22.6 100.0

Total 31 100.0 100.0

Frequency

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Statistics

to what extent
labels affects
age profession you

N Valid 31 31 31

Missing 0 0 0

Mean 2.0968 2.6452 2.5484

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Age

Cumulative
Frequency Percent Valid Percent Percent

Valid >18 2 6.5 6.5 6.5 Correlation

35>60 3 9.7 9.7 96.8

abov60e 1 3.2 3.2 100.0

Total 31 100.0 100.0

why do you
profession smoke

profession Pearson Correlation 1 .023

Sig. (2-tailed) .903

N 31 31

why do you smoke Pearson Correlation .023 1

Sig. (2-tailed) .903

N 31 31

Regression

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 1.247 1 1.247 4.848 .036a

Residual 7.462 29 .257

Total 8.710 30

a. Predictors: (Constant), how many ciggarettes do you smoke per day now

b. Dependent Variable: age

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We have to find whether there is any relation between demand of cigarette and its packaging and
leveling. For that we have taken the null hypothesis-

Frequencies

Statistics

how often labels affects you

N Valid 31

Missing 0

Mean 3.4194

how often labels affects you

Cumulative
Frequency Percent Valid Percent Percent

Valid always 5 16.1 16.1 16.1

very often 5 16.1 16.1 32.3

often 5 16.1 16.1 48.4

seldom 4 12.9 12.9 61.3

never 12 38.7 38.7 100.0

Total 31 100.0 100.0

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Frequencies

Statistics

why do you prefer your brand

N Valid 31

Missing 0

Mean 2.3226

why do you prefer your brand

Cumulative
Frequency Percent Valid Percent Percent

Valid price 13 41.9 41.9 41.9

taste 15 48.4 48.4 90.3

length 1 3.2 3.2 93.5

filter quality 2 6.5 6.5 100.0

Total 31 100.0 100.0

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Frequencies

Statistics

which brand do you prefer to

N Valid 31

Missing 0

which brand do you prefer to smoke

Cumulative
Frequency Percent Valid Percent Percent

Valid gold leaf 13 41.9 41.9 41.9

gold flake 4 12.9 12.9 54.8

morven gold 4 12.9 12.9 67.7

embassy 3 9.7 9.7 77.4

pine light 3 9.7 9.7 87.1

capstan 4 12.9 12.9 100.0

Total 31 100.0 100.0

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Frequencies

Statistics

if you quit smoking what will be

N Valid 30

Missing 1

if you quit smoking what will be the reason behind it

Cumulative
Frequency Percent Valid Percent Percent

Valid health factor 9 29.0 30.0 30.0

family restriction 14 45.2 46.7 76.7

government policy 1 3.2 3.3 80.0

increasing price 4 12.9 13.3 93.3

pictorial and text warning 2 6.5 6.7 100.0

Total 30 96.8 100.0

Missing System 1 3.2

Total 31 100.0

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Graph

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H0- There is no relation in demand for cigarettes and pictorial and text warning on packs.

H1- There is significant relation in demand for cigarettes and pictorial and text warning on
packs.

Conclusion
The warning level of cigarette packet is becoming horrified day by day. So our main objective is
to know the impact of packaging and leveling of consumer behavior and the impact of it in
demand of cigarette.

To know this we conduct a small survey of 30 respondents through questionnaires method. Our
sample is all smokers. The major portion of it student’s it age between 18-35 & they are smoking
almost 1-5 years.

But we found that the warning level affect’s only a few respondents that is only 24% of the
sample and we also get a result that from the large variety of cigarettes most of d population
choose one particular brand that is Gold flake..From the data collected to found that most people
select cigarette brand best on its states, filter quality followed by length, price & at last the
packaging is come.50% of the pop buys cigarette packets & rest buys loose cigarette. We also
found that family pressure is best motivation for quitting smoking followed by health reason but
surprisingly price doesn’t affect to quit smoking. So as a whole we can say that from our
research the impact of packaging and leveling of consumer behavior and demand of cigarette is
very low.

So at last we will conclude that the survey which we have undertaken was a mere successful one.

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LIMITATION S OF THE RESEARCH

The research that we have conducted was a successful one but still we have tried to cover some
of the lagging or shortcoming that came as a barrier in our research topic. Some of the barriers
are discussed below:

1) The sample that we have taken for our study, Most of them are students and professors,
Persons engaged in some administrative work, so the people from IT and corporate sectors are
very low where the stress level is very which is one of the of smoking. So we could not get the
overall view of the persons engaged in different profession regarding our research.

2) Our survey was restricted in the layyah area only. So there is a geographical limitation
came to our study.

3) Some of the respondents left some questions blank without answering. So; we couldn’t
get the accurate result of our data analysis.

4) Some of respondent were not very willing to answer the questions. They might not wish
to reveal the information or they might think that they will not benefit from responding perhaps
even be penalized by giving their real opinion.

5) In the pen ended questions some the respondents has given their responses in a way that it
was difficult to interpret for us.

6) Most of the people were not serious in filling up the questionnaires they are not following
the instructions properly like in some cases while evaluating we found that where we have
instructed to choose one among the five there, they have chosen two or three instead of
one.So,while analyzing we have faced a lot of difficulties.

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