Table 2

The use of in-store coupons or other price-related discounts by cigarette manufacturers and by top 10 leading US brands*

Prevalence of coupon use (%)% Of discountAverage pricePrice after discountRank†
 Virginia Slims10.63.4$6.49$6.279
 Pall Mall15.91.3$3.19$3.155
  • N represents unweighted sample size. All estimates were obtained with post-stratification weights. In regressions, the dependent variable is price paid per pack, and the variable of interest is whether using coupons, rebates, buy-one-get-one-free, two-for-one or any other special promotions for cigarettes in the most recent purchase. Control variables include demographic characteristics (race, age, gender, education, marital status and employment status), state dummy variables, whether the respondent is a daily smoker, time to first cigarette since wake up and all other price-minimisation behaviours (ie, purchase of generic brands, purchase of cartons, purchase on Indian reservation or purchase through the internet). Percentage of discount rendered is obtained by dividing average price per pack with price reduction associated with coupons and other price-related discounts.

  • *The self-reported use of coupons or other price-related discounts only reflects direct-to-consumer discounts from the industry. Therefore, industry's promotional allowances directly paid to retailers or wholesalers are not included.

  • †Based on prevalence of coupon use.

  • ‡Price reduction associated with coupons and other price-related discounts is statistically significant at 5% level.

  • §Statistically significant at 10% level.