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TERM PAPER

REPORT
ON
Consumer
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
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Description
Preface
Acknowledgement
Students Declaration
Synopsis
Introduction to the topic
Objectives of the study
Scope of the study
Literature Review
Research Methodology
Data Analysis and Interpretation
Major Findings
Conclusion
Limitations of the study
Scope for Further Research
Bibliography
Appendix

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Page
No.

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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Students Declaration

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Synopsis
Title:
Consumer Perception related to Smoking
Objective:

To understand peoples 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 consumers 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
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every 24 months. Misleading packaging and labeling, including terms


such as light, and low-tar and other signs, is prohibited.

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 Design
Exploratory 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.

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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 Method
Convenience sampling technique has been followed.

Interpretation Of The Result


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

Data Analysis and Interpretation

1)

Demographic Profile

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Males

38

53.5%

Females

33

46.5%

2)

Age Group

Below 18

5.6%

Between 18
and 30

56

78.9%

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Above 30

11

15.5%

3) Do You Smoke?

Yes

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27

38%

No

44

62%

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

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Yes

66

93%

No

2.8%

Not Completely 3

4.2%

5) Do you think the sale of Cigarettes should be


banned?

Strongly Agree 23

32.4%

Agree

14.1%

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10

Neutral

18

25.4%

Disagree

12.7%

Strongly
Disagree

11

15.5%

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


prefer?

Preference

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1st

2nd

3rd

16

14

22.5%

19.7%

2.8%

Strong

Preference

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1st

2nd

3rd

13

18.3%

12.7%

9.9%

Mint

Preference 1st

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2nd

3rd

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
dont 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
dont smoke, what is their perception]

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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?

Habit

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8.5%

High Stress

12

16.9%

Both

17

23.9%

9. Do you feel E-Cigarettes should be


promoted?

Strongly Agree

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14

19.7%

Agree

10

14.1%

Neutral

17

23.9%

Disagree

11

15.5%

Strongly
Disagree

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?

Yes

12

16.9%

No

13

18.3%

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It has a very strong


impact

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

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 9
they are doing

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 8


others at risk as well

11.3%

Both are equally harmful, and strict measures should be taken 19


against both of them

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 ecigarettes.
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.

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E-Cigarettes
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 ecigarettes 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
persons 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.

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Limitations of The Study


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.

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Scope for Further Work


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.

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Conclusion
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 ITCs 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.

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Appendix
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 Dont 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

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Do the "No Smoking" ad campaigns in televisions and films affect


your perception towards smoking in anyways? *
Yes
No
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 Dont 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

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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:
http://timesofindia.indiatimes.com/
http://www.tobaccocontrollaws.org/
http://www.legacyforhealth.org/

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