The increase in cigarette prices

Most of the measures, to combat Smoking, not perceived properly by our fellow smokers. They can agree, to be with a Smoking cigarette in public places – not good, but deeply resent the price increases on tobacco products. They say, again, I decided to get my hands on someone's weaknesses! Besides, should we rely on then, that the oppression of certain categories of citizens will be productive?

It is impossible to eliminate Smoking, acting in one direction only. We need a comprehensive approach, unifying around noble ideas of the various methods. The increase in cigarette prices in 2017 year is considered a profitable scheme for anti-Smoking. So whether it's?

Hardly appreciably diminished those wishing to smoke in a public place after a rise in price of cigarettes or the introduction by the government of any country or the local government decree. Another thing, if such initiatives to support the disciplinary measures.. Should take a long time, to be able to see the results. What is the mechanism of the proposed scheme?

The unexpected rise in prices of tobacco smokers will regard, as the shameless desire of capitalists to profit, robbing once again the common people to the bone. Although some people should be, in simple terms, the drum.

But after the carried-out educational work and propaganda through the media new price tags for cigarettes will not cause a storm of indignation. Smokers, if not all, many, will have to give up under civilized, but the stubborn pressure from the public, which went on the offensive on cigarettes on all fronts.

The effectiveness of increasing the price of cigarettes

To evaluate the result of the adoption of the measure can, if the arm offered by the economists concept called "price elasticity (demand)". It shows how began to buy less cigarettes after a one percent increase in the price of.

For example, the value of elasticity is equal to -1,5 it should be understood approximately so: seeing increased 10 percent values on the price tags, buyers 15 percent less likely to become interested in cigarettes. At a relatively low to a certain extent the values of the elasticity of demand, prices do not look too frightening, not of concern in the environment of smokers.

Economically developed countries are trying to hold the price elasticity of around -0,4 (because of the 10% growth of prices, demand fell by 4 percent), what causes a reaction, so, gives hope for a positive outcome.

To price policy effective, requires the presence of a number of factors. The price elasticity is influenced:

1. Income. In countries with a weak economy, things are worse and the price elasticity of cigarettes – between -0,7 and -0,95. If the funds on the strength enough for the bare necessities, exist from paycheck to paycheck, it is about the allocation of money, that turns into smoke, cannot be and speeches. Absolutely not impressed by the fact that raising prices of cigarettes those, whose income is high and stable.
2. Age and gender. Than older people, for him the lower the price elasticity. The explanation is simple. Have not long ago started Smoking young man, first, have not had time to take root bad habit, and, second, income in most cases is not stable. The fair sex is easier to find the strength to stop Smoking. Also, they mostly prefer not to the cheap selection of cigarettes. The average woman less than daily smokes cigarettes, than a man, as well as a lot less experience.

The reason for soaring prices of cigarettes in the first place is the introduction of a higher excise tax, ie. indirect tax. Anyway, to improve elasticity of demand in this situation should work with the consumer, using cunning marketing techniques. It implies the following theses:

1. To limit availability of tobacco products. Smokers usually unite around outlets, which are free to let go of the cigarettes: cash shopping, newsagents, stalls, small eateries, etc. It makes life easier for those, who else is at the initial stage of addiction. They will not travel throughout the neighborhood with only one sole purpose – to find a tobacco shop.
2. Warnings on packages. The smoker, holding up a pack of cigarettes, must be evident the mind-disturbing phrase, for example, "Smoking kills" or a warning about, it can cause lung cancer. Of course, it is naive to believe, if after reading this man, immediately throw cigarettes in the trash. But on a subconscious level fixed the message about the harm. As they say, water wears away the stone.
3. The ban on cigarette advertising. Tobacco manufacturers at full capacity use third-party advertising companies. There, where such advertising is banned, the addiction to cigarettes occurs in people later in life. Mainly because easy suggestion lends itself to sensitive children's brains, adolescents and young people!

The increase in cigarette prices 2017 – the next step to a healthy nation. Although most people believe, that such measures will not give results, will aggravate the financial situation of some families.