Publication: Cigarette purchasing behaviour in Thailand and Malaysia: Comparative analysis of a semi-monopolistic and a free-market structure
Issued Date
2009-11-01
Resource Type
ISSN
17441706
17441692
17441692
Other identifier(s)
2-s2.0-70849131689
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Mahidol University
Rights Holder(s)
SCOPUS
Bibliographic Citation
Global Public Health. Vol.4, No.6 (2009), 588-599
Suggested Citation
H. Ross, P. Driezen, B. Sirirassamee, F. Kin Cigarette purchasing behaviour in Thailand and Malaysia: Comparative analysis of a semi-monopolistic and a free-market structure. Global Public Health. Vol.4, No.6 (2009), 588-599. doi:10.1080/17441690903072204 Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/27879
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Title
Cigarette purchasing behaviour in Thailand and Malaysia: Comparative analysis of a semi-monopolistic and a free-market structure
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Abstract
A wide range of cigarette prices can undermine the impact of tobacco tax policy when smokers switch to cheaper cigarettes instead of quitting. In order to better understand this behaviour, we study socio-economic determinants of price/brand choices in two different markets: a semi-monopolistic market in Thailand and a competitive market in Malaysia. The hypothesis that the factors affecting the price/brand choice are different in these two markets is analysed by employing a 2005 survey among smokers. This survey provides a unique perspective on market characteristics usually described only in business reports by the tobacco industry. We found that smokers in Thailand have fewer opportunities to trade down to save money on cigarettes, but pay lower prices than smokers in Malaysia, despite Thailand's higher tax rate. The Malaysian market, on the other hand, offers many possibilities to shop around for cheaper cigarettes. Higher income and education increase the price paid per cigarette in both countries, but the impact of these factors is larger in Malaysia. This has implications for sensitivity to cigarette prices. Using tax policy alone should be a more effective tobacco control measure in Thailand as compared to Malaysia. The effectiveness of a tax increase in Malaysia can be improved by adding programmes focusing on smoking cessation among low-income/low-educated smokers. © 2009 Taylor & Francis.