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INSTITUTE OF BUSINESS AND TECHNOLOGY The Brand Preferences of Cigarette in Pakistan Prepared By Shah Shahabuddin Khurram (BME / 633) Course Code : MKT-606 MBA (Marketing and Advertisement) FACULTY OF MANAGEMENT AND SOCIAL SCIENCES SPRING 2010

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INSTITUTE OF BUSINESS AND TECHNOLOGY

The Brand Preferences of Cigarette in Pakistan

Prepared By Shah Shahabuddin Khurram

(BME / 633)

Course Code : MKT-606

MBA (Marketing and Advertisement)

FACULTY OF

MANAGEMENT AND SOCIAL SCIENCES

SPRING 2010

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The Brand Preferences of Cigarette in Pakistan

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CONTENT

Page No.

ACKNOWLEDGMENT……………………………………………………… 04

ABSTRACT……………………………………………………………………. 05

CONTENTS OF TABLE AND CHARTS TABLES TABLE #1: Tobacco use among Teenagers TABLE #2: Tobacco use among Races TABLE #3: Recreational drug use TABLE #4: Statistics TABLE #5: What is your Gender TABLE # 6: What is your Age TABLE #7: Do you Smoke

CHARTS CHART #1: Tobacco Use CHART #2: Age CHART #3: What is your Gender CHART #4: What is your Age

FIGURE: Figure #1: Percentage of Total Cigarette Consumption in SA Region, 1999

CHAPTER NO.1 INTRODUCTION 1.1 Introduction and Overview………………………………………………07 & 08 1.2 Problem Statement…………………………………………………………..09 1.3 Aims of the Research............................................................................. 09 1.4 Objective of the Research…………………………………………………..10 1.5 Hypothesis..............................................................................................10 1.6 Limitations…………………………………………………..........................11

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CHAPTER NO. 2 LITERATURE REVIEW 2.0 Literature Review ………………………………………………...……………13

2.1 Articles …………………………………………………………………………14 2.2 Article on Smuggling ………………………………………………….……..15 2.3 Article on Price War ………………………………………………………....16 2.4 Article on Effect of Price Increase on Cigarette Consumption …………..17

CHAPTER NO. 3 CIGRAETTES BRAND 3.1 Cigarette Consumption Globally ……………………………………………20 3.2 International Work done ……………………………………………………. 21 3.3 Recreational Drugs Used alternate to Cigarette ………………………….22 3.4 Tobacco Industry in Pakistan ………………………………………………..39 3.5 List of countries by cigarette consumption per capita ..............................42

CHAPTER NO. 4 HYPOTHESIS TESTING 4.1 Population and Sample Size………………………………………………. 48 4.2 Data Gathering Instruments…………………………………………..….… 49 4.3 Procedure Followed To Gather Data ……………………………………... 49 4.4 Statement of the Hypothesis ………………………………………………..49 4.5 Statistical Techniques……………………………………........................... 50 4.6 Methodology ……………………………………………………………….....51 4.7 Solution and Evaluations …………………………………………………... 53 4.8 Frequency Tables…………………………………………………………….54 4.9 Hypothesis Testing ……………………………...................................... 63

CHAPTER NO . 5 RESEARCH FINDINGS 5.1 Questionnaire …......................................................................................91

CHAPTER NO. 6 CONCLUSION AND RECOMMENDATIONS 6.1 Conclusion…………………………………………….................................94 6.2 Recommendations ………………………………………. …………….……94

BIBLIOGRAPHY ……………………………………………………...............

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ACKNOWLEDGEMENTS

“THANKS TO ALMIGHTY ALLAH”

My sincere thanks to the Teacher Dr. Noor Ahmed Memon

without whose Teachings, help and guidance this Term

Report would not have been possible.

I would like to thank also all the people who cooperated and

provided me their precious time to fill out the questionnaires

during my survey.

I would like to thanks the Biztek Library Staff, my friends

outside Biztek and my class fellows for providing me help,

books & materials related to the topic. And also the company

employees who also provide such company insights.

I would like to thank my parents with out their dedication and

Sacrifice to my future I really wouldn’t be where I am today.

Thanks to all of them.

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INSTITUTE OF BUSINESS AND TECHNOLOGY

ABSTRACT SUBMITTED BY: Shah Shahabuddin Khurram

DISCIPLINE: MBA (Marketing)

TITLE OF PROJECT REPORT: The Brand Preferences of Cigarette in Pakistan

MONTH OF SUBMISSION: Spring, 2010 NAME OF PROJECT SUPERVISOR: Dr. Noor Ahmed Memon

ABSTRACT

Before I could decide what topic to write for my Project to be

submitted in part ial fulf i lment of graduation requirements of

the Institute of Business and Technology – BIZTEK MBA –

(Marketing and Advert ising) program, I saw and hear a lot

about the Increase of Cigarette Usage and Cigarette

Companies.

So, I decide to explore the topic and to see the effect of the

topic in Pakistan context.

This Term report focus on cigarette brand’s preference of consumers

according to “AICOL”

People belonging to same Age group, Income, Consumption of

Cigarettes, Occupation & Location prefer same brand of cigarettes.

On the basis of this I will discuss my topic brief ly.

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CHAPTER NO.1 INTRODUCTION 1.1 Introduction and Overview

1.2 Problem Statement

1.3 Aims of the Research.

1.4 Objective of the Research

1.5 Hypothesis

1.6 Limitations

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CHAPTER NO.1 INTRODUCTION

1.1 INTRODUCTION AND OVERVIEW

Tobacco:

Tobacco is a plant grown for its leaves, which are smoked,

chewed, or sniffed for variety of effects. It is considered as

addiction substance because it contains the chemical

nicotine.

Cigarette is a small role of finely cut tobacco for smoking,

enclosed in a wrapper of thin paper. It is addiction which

means physical or psychological need for a habit- forming

substance, such as a drug or Alcohol. In physical addiction,

the body adapts to a substance being used and gradually

requires increased amounts to reproduce the effects originally

produced by smaller doses. Everyone knows smoking is bad

for them, but millions cannot overcome the addiction.

Research

Let us define the term which we created for the understanding

and easiness of the work at hand and to facilitate the work for

us and for the respondents a like and the word is: “AICOL”

Consisting of these followings:

A= Age I= Income C= Consumption a O=Occupation L=Location b

a cigarettes per day smoke by a sample or respondent

b Area in which respondent lives

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OVERVIEW:

This report focuses on cigarettes brand preferences of

consumers as smoking is an addiction. If a person smokes,

what he needs is a filter, tobacco & paper and most

importantly a taste which will satisfy him best. If taste has the

most importance here so consumer will prefer only one brand

over others. If that is the case, how many consumers

belonging to same “AICOL”, than will prefer a specific brand?

Consumer preference defers from consumer to consumer

but can be same according to “AICOL”. In order to check

the level of preference of consumer this report was

started.

Contradicting to the statement “consumer preference differs

from person to person” I found that people according to

AICOL use same cigarette brand. Means usually consumer

from alike set has same psychology and same kind of

products usually satisfies them and provides them value.

A Questionnaire was designed by keeping respondents in

mind & their precious time that is why it consists of only 9

questions because we already studied that the questionnaire

should not be too long and too short and we followed the

teachings of our teacher. But these 9 questions are enough to

provide necessary information according to our hypothesis.

During my research Questionnaire filling, the respondents

responded very comfortably and easily and cooperated well

with us. I selected my respondents randomly and visited

different places like: Offices, Collages, Shopping malls,

Parks, Different Pan shops & Super Markets in different

locations.

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1.2 Problem statement:

The problem statement of my research is “to determine the

consumer usage pattern of cigarette according to AICOL

i.e. Age, Income, Consumption, Occupation and

Occupation.

It is usually thought that people from same AICOL use or

prefer same kind of brands, same kind of products. It has also

been observed that people from same AICOL have similar

likes and dislikes, they have same psychology. I have taken

this topic as this will help me in understanding the behavior of

consumers who belongs to similar group of people. And will

also help me to prove this thinking right or wrong.

1.3 Aims of the Research:

Aims of the research are to test out and confirm the known

statements and study the consumption pattern in Pakistan. I

have selected six hypotheses, among which five are to prove

basically brand preference according to age, brand

preference according to income, cigarette brand preference

according to consumption pattern, cigarette brand preference

according to occupation and cigarette brand preference

according to location, the last hypotheses is the consumption

rate according to consumer’s occupation. The last hypothesis

is set to check the consumption rate according to occupation.

Weather occupation and consumption have any relation or

not?

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1.4 Objective of the Study:

The objectives of the study/research are to determine:

1) To determine the relationship between age of the

consumers to their cigarette brand preference

2) To determine the relationship between income of the

consumers to their cigarette brand preference.

3) To determine the relationship between consumption of

the consumers to the amount of cigarettes per day.

4) To determine the relation of cigarette brand preference

to the occupation of the consumers

5) To determine the changing behavior of cigarette

consumers according to the location they live.

6) To determine if there is any relationship between rates

of consumption to the occupation they are in.

1.5 Hypotheses:

6 hypothesis were set are as follow;

1) Consumers belong to same AGE group prefer same

brand of cigarettes.

2) Consumers belong to same group of INCOME prefer

same brand of cigarettes.

3) Consumers belong to same rate of CONSUMPTION

group prefer same brand of cigarettes.

4) Consumers belong to same OCCUPATION prefer

same brand of cigarettes.

5) Consumers belong to same LOCATION prefer same

brand of cigarettes.

a. Consumers belonging to same OCCUPATION have

same rate of CONSUMPTION of cigarettes.

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1.6 Limitations:

This study was conducted only in Karachi. Due to the fact that

convenience sample was used; the findings cannot be

generalized and would be low in external validity. Sample size

was selected as 263, focusing on people who are from

different organizations and different areas of Karachi.

I tried to make this study comprehensive but there is always a

possibility of getting wrong, inadequate answers from few of

the respondents. Therefore my results may give an idea but

cannot be 100 % correct. As in researches at bigger level

respondents are paid or compensated for their time and to

provide correct answers but for this small level research it

may not be the case.

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CHAPTER NO. 2 LITERATURE REVIEW

2 Literature Review

2.1 Articles

2.2 Article on Smuggling …………………………………………………..

2.3 Article on Price War

2.4 Articles by

2.4 Article on Effect of Price Increase on Cigarette Consumption

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CHAPTER NO. 2 LITERATURE REVIEW

The focus of this chapter is to providing insights to the

theories that have shaped the understanding of consumer

cigarette consumption, their brand preferences according to

Age, Income, Consumption, Occupation and Location.

Given the focus of this research study, it is important to have

a sound understanding of tobacco industry and usage

patterns on international and national level.

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2.1 Articles:

Smoking may not be good for health but it is certainly good for

numerous national economies around the world, and Pakistan

is no exception. This article intends to highlight the important

role tobacco plays in the economics of the country, nothing

more nothing less.

By Syed M. Aslam Jul 31 - Aug 06, 2000

Tobacco industry — growing, manufacturing, distribution and

retailing — contributed 4.4 per cent or over Rs 27.5 billion to the

total GDP of Pakistan including Rs 15.17 billion, including Rs 14.54

billion in excise duty and sales tax, in 1997. It is the single biggest

contributor of excise duty, six-times than that from cotton yarn.

Over 5 per cent of all taxes collected in the country come from the

tobacco industry. It employs over one million people directly or

indirectly which in terms of full-time equivalent jobs means 312,500

jobs supporting some 1.2 million persons.

The area under tobacco cultivation increased by 30 per cent during

1990-91 to 1998-99 — from 44,000 hectares to 57,000 hectares.

The production has increased even more significantly during the

same period — by 145 per cent from 75,000 tones to 109,000

tones. The value-added sector, the cigarette production, depicted a

far more un-proportionate increase of 72 per cent — from 29.8

billion sticks to 51.5 billion sticks during the same period.

Tobacco is the only crop grown in Pakistan whose yield is well

above the world average and matches the per hectare yield in the

US and other developed countries — an average yield of 1,900

kilograms per hectare. Tobacco industry — growing,

manufacturing, distribution and retailing employs over one million

persons directly or otherwise. This translates in the full time

equivalent of 312,500 jobs supporting approximately 1.2 million

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persons. Manufacturing employs the highest number of persons —

35 per cent followed by 33 per cent by growing and 32 per cent in

distribution and retail.

2.2 Article on Smuggling

It is easy to understand the threat of huge revenue loss that

presence and easy availability of smuggled cigarettes pose to the

economy of Pakistan. The government is losing substantial revenue

of Rs 3 billion from the smuggling of cigarettes into the country.

According to Aslam Khaliq, the director consumer and regulatory

affairs of Pakistan Tobacco Company, the second top cigarette

manufacturer after Lakson Tobacco, the government is losing at

least Rs billion every year due to cigarette smuggling. He blamed

the high taxation as the singular most important incentive for

cigarette smuggling.

This is true if one looks at the global trends of taxation on

cigarettes. Smokers in Pakistan pay the highest tax in the world

second only to Denmark and the UK where 85 per cent and 82 per

cent of the retail price respectively goes toward taxation. In

Pakistan, 78 per cent of the retail price of premium brands ( all

brands whose retail price is over Rs 10 per 20 sticks) and 58 per

cent of the retail price of low segment brands go toward taxation.

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2.3 Article on Price war

Defending the price war started by PTC by slashing the prices of a

number of its middle-priced brands early this year, Aslam said that

it brought numerous domestic manufacturers in the excise duty and

sales tax net. For instance, slashing the prices on some of its brand

by 50 per cent from Rs 19 to Rs 9 reduced the excise duty from 63

per cent to 43 per cent with sales tax remaining unchanged at 15

per cent. Despite price reduction, Aslam said, PTC was able to

break even due to increased turnover and at the same time forced

manufacturers who did not pay excise duty and sales tax in the net

to create a level playing field.

Though worried about smuggling and high taxation, Aslam

expressed that cigarette prices in Pakistan are on the much low

side. He said that the manufacturers should be allowed to increase

the prices of their products to better their revenues which are

constantly threatened by massive smuggling. He also suggested

that price increases would help discourage smoking in the country.

True. Experience in many countries show that each 10 per cent

increase in cigarette prices results in a 5 per cent decrease in the

numbers of smoking adults and much more in young adults —

between 6 to 8 per cent — who have little surplus funds to spend

on smoke. However, the argument that high prices discourage

smoking is a bit flawed particularly in the context of Pakistan.

Number one, unlike all developed and many developing countries

Pakistan choose not to spend even a negligible portion of tobacco

taxes on healthcare, research, education, and anti-smoking

activities. Such developing countries, not to mention the developed

ones, as Nepal and Peru spend a share of cigarette taxes to

support cancer research and treatment. Latvia allocates 30 per cent

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of the revenue which it earns from the tobacco tax on healthcare.

Iran earmarks a portion of tobacco tax revenue on healthcare and

education.

Secondly, if the manufacturers and policy makers are really serious

about reducing smoking in Pakistan through price increases — and

no one say that they are — they need to raise taxes on all brands

of cigarettes be it locally manufactured — imported. Supporting the

domestic tobacco industry against imports, as is the case with

Pakistan, may be good for the local industry but negates the very

argument that higher prices and taxation discourages smoking.

2.4 Article on Effect of price increases on cigarette consumption

Saturday, June 06, 2009 Jonathan Foulds, MA, MAppSci, PhD

A recent paper published by the Centers for Disease Control and

Prevention described the dramatic increases in tobacco prices over

recent years. From the end of 1995 to April 2009 all but 5 states

increased their state cigarette taxes (Florida, Missouri, Mississippi,

North Dakota and South Carolina didn’t). The average increase

over that time period was from 33 cents to $1.20. The state

cigarette taxes range from 34 cents (Florida) to $2.75 (New York).

Over the same time period the federal tax per pack increased from

24 cents to $1.01, making an overall average tax increase from 57c

to $2.21. In addition, the tobacco industry itself has increased its

prices (before tax), and many other cities and municipalities have

additional taxes. For example, New York City has its own $1.50 tax

and Chicago has its own Cook County tax of $2.68.

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These increases really took off around 2000, and the recent federal

tax increase (which includes all tobacco products) marks the single

largest effect on national cigarette prices. When these increases

are added to local sales taxes and combined with the widespread

lowering in disposable income caused by the economic recession, I

believe they will cause a really significant reduction in tobacco

consumption in the United States. One effect of such price

increases is that smokers smoke fewer cigarettes per day. This

may or may not reduce health risks. Another effect is to increase

motivation to quit among existing smokers, and another is to

decrease interest in initiating regular smoking (primarily on young

people).

Of all these effects, the one with the largest initial impact on both

individual and population health is stimulation of greater motivation

to quit smoking and more quit attempts. Its really only by

completely quitting smoking that major health benefits can be

achieved. So although these are tough financial times, its important

that smokers are given assistance to quit at this key time when

finances will provide an extra motivation.

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CHAPTER NO. 3 CIGRAETTES BRAND 3.1 Cigarette Consumption Globally

3.2 International Work done

3.3 Recreational Drugs Used alternate to Cigarette

3.3 Tobacco Industry in Pakistan

3.2 List of countries by cigarette consumption per capita

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3.1 Cigarette’s Consumption (Globally)

“Short, snappy, easily attempted, easily completed or just as easily discarded before completion – the cigarette is the symbol of the machine age.

SOURCE: WHO 2009 "New York Times, 1925 Global consumption of cigarettes has been rising steadily since manufactured cigarettes were introduced at the beginning of the 20th century. While consumption is leveling off and even decreasing in some countries, worldwide more people are smoking, and smokers are smoking more cigarettes. The numbers of smokers will increase mainly due to expansion of the world’s population. By 2030 there will be at least another 2 billion people in the world. Even if prevalence rates fall, the absolute number of smokers will increase. The expected continuing decrease in male smoking prevalence will be offset by the increase in female smoking rates, especially in developing countries. The consumption of tobacco has reached the proportions of a global epidemic. Tobacco companies are cranking out cigarettes at the rate of five and a half trillion a year – nearly 1,000 cigarettes for every man, woman, and child on the planet. Cigarettes account for the largest share of manufactured tobacco products, 96 percent of total value sales. Asia, Australia and the Far East are by far the largest consumers (2,715 billion cigarettes), followed by the Americas (745 billion), Eastern Europe and Former Soviet Economies (631 billion) and Western Europe (606 billion).

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3.2 International work done

Tobacco Use among Middle and High School Students –

U.S.A 1999

Morbidity and Mortality Weekly Report

January 28, 2000 / 49(03); p.49-53

The prevalence of cigarette smoking nationwide among high

school students increased during the 1990s; more than 80%

of current adult tobacco users started smoking cigarettes

before age 18 years. To determine the prevalence of

cigarette, smokeless tobacco (i.e., chewing tobacco and

snuff), cigar, pipe, biddy, and Kretek use among middle

school and high school students nationwide, the American

Legacy Foundation, in collaboration with the CDC

Foundation, conducted the National Youth Tobacco Survey

(NYTS) during the fall of 1999.

This report summarizes data from the NYTS on current use of

tobacco products, which indicate that 12.8% of middle school

students and 34.8% of high school students use any type of

tobacco; that the low prevalence of current cigarette smoking

observed among black high school students throughout the

1990s is not found among middle school students; and that

the percentages of high school students who currently use

biddies and retakes (two new forms of tobacco in the United

States) are almost as high as the proportion who use

smokeless tobacco.

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The school-based 1999 NYTS employed a nationally

representative sample of students in grades 6-12. 145

schools were selected, and approximately five intact classes

of a required subject (e.g., English or social studies) across

grades 6-12 were randomly selected from each participating

school. All students in the selected classes were eligible to

participate. 15,058 students in 131 schools completed

questionnaires. The school response rate was 90%, and the

student response rate was 93%, resulting in an overall

response rate of 84%.

Students completed an anonymous, self-administered

questionnaire that included questions about tobacco use,

exposure to environmental tobacco smoke, minors' ability to

purchase or otherwise obtain tobacco products, knowledge

and attitudes about tobacco, and familiarity with pro- and anti-

tobacco media messages. Current use of biddies, cigarettes,

cigars, retakes, pipes, and smokeless tobacco was defined as

use on one or more of the 30 days preceding the survey. Any

current tobacco use was defined as using any of these

products on one or more of the 30 days preceding the survey.

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Middle School Students

Among middle school (grades 6-8) students, the overall

prevalence of any current tobacco use was 12.8% (see Table

1 below). Cigarettes (9.2%) were the most prevalent type of

tobacco used, followed by cigars (6.1%). Cigarette smoking

rates were similar among boys and girls and among

racial/ethnic groups.

Boys were significantly more likely than girls to use

smokeless tobacco (4.2% and 1.3%, respectively), smoke

cigars (7.8% and 4.4%, respectively), and smoke tobacco in a

pipe (3.5% and 1.4%, respectively). Black students were

significantly more likely than white students to smoke cigars

(8.8% and 4.9%, respectively).

High School Students

Among high school (grades 9-12) students, the overall

prevalence of any current tobacco use was 34.8%. Cigarettes

(28.4%) were the most prevalent type of tobacco used,

followed by cigars (15.3%). Boys were significantly more likely

than girls to use smokeless tobacco (11.6% and 1.5%,

respectively), smoke cigars (20.3% and 10.2%, respectively),

smoke tobacco in a pipe (4.2% and 1.4%, respectively), and

smoke bid is (6.1% and 3.8%, respectively).

White and Hispanic students were significantly more likely

than black students to smoke cigarettes (32.8%, 25.8%, and

15.8%, respectively). White students were significantly more

likely than black and Hispanic students to use smokeless

tobacco (8.7%, 2.4%, and 3.6%, respectively).

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Tobacco use among Teenagers

1. Percentage of students in middle school (grades 6-8) and high

school (grades 9-12) currently* using tobacco products, drugs by

type of tobacco product, sex, and race/ethnicity United States,

National Youth Tobacco Survey, 1999[95% Confidence intervals in

parentheses. Middle School (MS) High School (HS).

2. Used tobacco on one or more of the 30 days preceding the survey

3. Any Tobacco Use (cigarettes, smokeless tobacco, cigars, pipes,

bides, or Kretekes (Kretek are cigarettes made with a blend of

tobacco, cloves and other flavors. The word "kretek" itself is an

onomatopoetic term for the crackling)

TABLE # 1: Tobacco use among Teenagers

Sex Race/Ethnicity

Male Female White Black Hispanic Total

MS 14.2(±2.2) 11.3(±2.2) 11.6(±2.3) 14.4(±2.7) 15.2(±5.2) 12.8(±2.0)

HS 38.1(±3.2) 31.4(±3.1) 39.4(±3.2) 24.0(±4.2) 30.7(±4.4) 34.8(±2.7)

B. Cigarettes

Male Female White Black Hispanic Total

MS 9.6(± .17) 8.8(± 1.7) 8.8(± 2.0) 9.0(±1.8) 11.0(± 4.1) 9.2(± 1.6)

HS 28.7(±2.8) 28.2(±3.3) 32.8(±3.1) 15.8(±3.8) 25.8(± 4.7) 28.4(±2.7

C. Smokeless Tobacco/Chew/Snuff

Male Female White Black Hispanic Total

MS 4.2 (±1.3) 1.3(±0.5) 3.0(±1.1) 1.9(±0.9) 2.2(± 0.9) 2.7(±0.7)

HS 11.6(±2.8) 1.5(±0.6) 8.7(±2.1) 2.4(±1.3) 3.6(± 1.6) 6.6(±1.6)

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D. Cigars

Male Female White Black Hispanic Total

MS 7.8 (± 1.3) 4.4 (± 1.3) 4.9 (± 1.0) 8.8 (± 2.3) 7.6 (± 2.9) 6.1(±1.1)

HS 20.3(±1.9) 10.2(±1.6) 16.0(±1.6) 14.8(±3.5) 13.4(±2.9) 15.3(±1.4)

E. Pipe

Male Female White Black Hispanic Total

MS 3.5(± 0.8) 1.4(± 0.6) 2.0(± 0.6) 2.0(± 0.9) 3.8(± 1.7) 2.4 (± 0.5)

HS 4.2(± 0.9) 1.4(± 0.5) 2.6(± 0.6) 1.8(± 0.9) 3.8(± 1.4) 2.8 (± 0.5)

F. Bidis

Male Female White Black Hispanic Total

MS 3.1(± 0.8) 1.8(± 0.6) 1.8(± 0.5) 2.8(± 1.3) 3.5(± 1.6) 2.4(± 0.6)

HS 6.1(± 1.0) 3.8(± 1.0) 4.4(± 0.9) 5.8(± 2.1) 5.6(± 2.1) 5.0(± 0.8)

G. Kreteks

Male Female White Black Hispanic Total

MS 2.2(± 0.6) 1.7(± 0.7) 1.7(± 0.7) 1.7(± 0.8) 2.1(± 0.6) 1.9(± 0.5)

HS 6.2(± 1.1) 5.3(± 1.5) 6.5(± 1.5) 2.8(± 1.5) 5.5(± 1.9) 5.8(± 1.2)

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CDC Editorial Note

This report is the first to measure the prevalence of current

tobacco use among a nationally representative sample of

middle school students and the first to report the prevalence

of current bids and Kretek use among a nationally

representative sample of middle and high school students.

Although previous national surveys have shown that cigarette

smoking rates among black high school students have been

increasing, black students still were smoking at much lower

rates than other high school students. However, the findings

in this report indicate that current cigarette smoking

prevalence among middle school black students was similar

to rates among white and Hispanic students and that current

cigar use prevalence among middle school black students

was significantly higher than among white students.

Future surveys should evaluate whether the rate of increase

in smoking rates among black students has accelerated and

whether the difference in smoking rates between black and

white high school students are disappearing. In addition, more

research is needed to determine whether black youth are

finding smoking appealing and socially acceptable.

Current use of novel tobacco products, such as bids and

retakes, is an emerging public health problem among U.S.

youth. Cigarettes remain the most widely used tobacco

product by youth; however, recent trends underscore the

importance of monitoring the rates at which youth adopt other

tobacco products. The social and cultural factors related to

differing patterns of tobacco product use across sex and

racial/ethnic groups require additional study.

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The 1999 NYTS estimates for high school students will be

compared with those of the Monitoring the Future (MTF) study

and the Youth Risk Behavior Survey (YRBS), the other

national school-based surveys. Comparison of NYTS

estimates with those of other national surveys must be

interpreted with caution for several reasons.

First, YRBS and MTF were conducted during spring 1999,

and NYTS was conducted during September-October 1999, a

different academic year. Within each grade, the fall school

population is approximately 6 months younger than the spring

school population. This difference can be expected to lead to

higher estimates of ever smoking in the spring surveys and

may lead to higher estimates of current smoking.

Second, the tobacco industry increased the wholesale price of

tobacco products during 1999, but also provided substantial

price discounts during the same period, making determination

of the precise effect of retail prices on smoking rates difficult.

However, preliminary per capita consumption estimates from

the U.S. Department of Agriculture suggest cigarette

consumption has decreased in 1999, suggesting that the

prevalence among youth also may have decreased.

Third, the NYTS is a single-topic survey (tobacco), and MTF

and YRBS are multi-topic surveys. The effect of the number

of topics surveyed on the resulting estimates is unknown.

Finally, NYTS had a 90% school response rate, a higher

reported school response rate than YRBS and MTF. Some

schools that participated in the NYTS may not participate in

YRBS or MTF.

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The findings in this report are subject to at least two

limitations. First, these data apply only to youth who attended

middle or high school and are not representative of all

persons in this age group. Few persons aged less than 16

years do not attend school and, in 1997, only 4% of 16-year-

olds and 6% of 17-year-olds who had not completed high

school were not enrolled in a high school program. The

dropout rate for young adults aged 16-24 years varies greatly

by race/ethnicity (7.6%, white; 13.4%, black; and 25.3%,

Hispanic). Second, "any current tobacco use" might be

underestimated in this report because it does not include a

measure of "roll-your-own" tobacco smoking.

To evaluate the potential impact of the expanding levels of

tobacco prevention efforts nationwide and in the individual

states, surveillance of trends in tobacco use among youth

must be continued and expanded. YRBS has provided

national and state-specific surveillance of tobacco use among

high school students since 1991. The NYTS and state-

specific youth tobacco surveys are extending this surveillance

effort to middle school students and across a wider range of

evaluation variables, including knowledge and attitudes about

tobacco, exposure to environmental tobacco smoke,

familiarity with pro-smoking and antismoking media

messages, and exposure to tobacco-use prevention

curriculum in schools.

CDC has prepared "Best Practices" guidelines to help states

determine funding priorities and to plan and carry out effective

comprehensive tobacco-use prevention and control programs.

If current patterns of smoking behavior persist, an estimated 5

million U.S. persons who were aged less than or equal to 18

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years in 1995 could die prematurely from smoking-related

illnesses.

Implementation of the "Best Practices" guidelines, along with

nationwide prevention efforts, enforcement of the proposed

Food and Drug Administration rules, increases in the excise

tax on tobacco products, and increased availability of smoking

cessation treatment options, could dramatically reduce these

projected deaths.

Editorial Note

The 1999 National Youth Tobacco Survey (NYTS) is the first

national school-based survey to provide information not only

about tobacco use, but about related knowledge, beliefs,

attitudes and behaviors. It is also the first national survey to

focus on all varieties of tobacco use among youth and the first

survey of middle school students.

As such, this survey will provide us with considerable new

knowledge about the onset of the nicotine epidemic and

should serve to remind us not to forget about all forms of

tobacco use. We look forward to reading future reports on the

1999 survey and hope that future surveys will be conducted to

enable us to examine trends over time.

The prevalence of current cigarette use among high school

students in fall 1999 has decreased substantially since spring

1997. These comparisons are shown in Table 2 below.

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TABLE 2 Tobacco Use among Races

1997 YRBS 1999 NYTS

Overall 36.4%(±2.3) 28.4% (±2.7)

Males 37.7%(±2.7) 28.7% (±2.8)

Females 34.7%(±2.8) 28.2% (±3.3)

Whites 39.7%(±2.4) 32.8% (±3.1)

Blacks 22.7%(±3.8) 15.8%(± 3.8)

Hispanics 34.0%(±2.7) 25.8%(± 4.7)

Current smokeless tobacco among male high school students

declined from 15.8% (± 3.7) in 1997 to 11.6% (± 2.8) in 1999;

however, this decline was not statistically significant (as the

95% confidence intervals overlap). The declines in cigarette

use may be due to events that occurred in the interim (e.g.

price increases due to the Tobacco Settlement or state tax

increases) or to cohort differences. However, it's also possible

that the differences in smoking prevalence are at least

partially attributable to differences in the methods used in

these two surveys (e.g., different content of survey

questionnaires and response rates).

The National Youth Tobacco Survey (NYTS) appears to have

employed very high quality survey methods. Sampling, survey

administration, response rates, and weighting and analysis of

the data appear to be very strong. The overall response rate

of 84% boosts our confidence that the results from this

sample are generalizable to the national school population.

(The report, however, did not indicate whether private schools

were included in the sample.) The overall response rate and

the school participation rate (90%) for this survey are

remarkable especially as compared to other national school-

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based surveys (e.g., the overall response rate for the 1997

National Youth Risk Behavior Survey (YRBS) was 69% and

for the 1998 Monitoring the Future Survey (MTF) was less

than 58%). Also remarkable is how quickly the preliminary

findings from this survey were released to the public.

Perhaps, other national surveys can be improved in these

areas.

The 95% confidence interval means that there is a 95%

likelihood that the actual value in the population should be

within that many percentage points of the observed sample

value. For example, 12.8 (± 2.0) for total tobacco use among

middle school students (which appears at the end of the first

row of Table 1) can be interpreted as follows: there is a 95%

likelihood that from 10.8% (12.8 - 2.0) to 14.8% (12.8 + 2.0) of

middle school students in the U.S. used some form of tobacco

in the 30 days preceding the survey.

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Tobacco Use in the 1998 National Household Survey on Drug Abuse

The results of the 1998 National

Household Survey on Drug Abuse

(NHSDA) have been released by the

U.S. Department of Health and

Human Services. The results for tobacco use have been

summarized below followed by a summary of the survey

design.

Tobacco Use in the United States

An estimated 60 million Americans were current cigarette

smokers in 1998. This represents a smoking rate of 27.7

percent for the population age 12 and older. The rate

decrease from 29.6 percent in 1997 is statistically significant.

Current smokers were more likely than nonsmokers to be

heavy drinkers and illicit drug users. Among current smokers,

the rate of heavy alcohol use (five or more drinks on the same

occasion on five or more days in the past month) was 14.0

percent, the rate of marijuana/hashish use was 13.6 percent,

and the rate of current illicit drug use was 16.1 percent.

Among nonsmokers, only 2.9 percent were heavy drinkers,

1.8 percent was marijuana/hashish users, and 2.5 percent

were illicit drug users.

An estimated 3.1 percent of the population was current users

of smokeless tobacco in 1998. The rate has remained steady

since 1991.

An estimated 6.9 percent of the population was current users

of cigars in 1998. This represents a statistically significant

increase from 1997, when the rate was 5.9 percent.

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Age

Approximately 4.1 million youth age 12-17 were current

smokers in 1998. The rate of smoking among youth age 12-

17 was 18.2 percent. The rate was 18.9 percent in 1994, 20.2

percent in 1995, 18.3 percent in 1996, and 19.9 percent in

1997. There were no statistically significant changes.

The current smoking rate among young adults age 18-25

continues to follow an upward path from 34.6 percent in 1994

to 35.3 percent in 1995, 38.3 percent in 1996, 40.6 percent in

1997, and 41.6 percent in 1998. The 1998 rate is significantly

higher than the 1994, 1995 and 1996 rates.

An estimated 5.6 percent of youths age 12-17, or 1.3 million,

were current cigar users in 1998.

This rate compares to 5.0

percent in 1997; the difference is

not statistically significant.

Race/Ethnicity

In 1998, current smoking rates were 29 percent among

Blacks, 28 percent among Whites, 26 percent among

Hispanics, and 24 percent among those of other race/ethnic

groups.

Smokeless tobacco use was more prevalent among Whites

(3.7 percent) than among Blacks (2.0 percent) or Hispanics

(0.8 percent).

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Gender

Males had higher rates of smoking than females (29.7 percent

vs. 25.7 percent). Among youths age 12-17, the rates for

males and females were similar (18.7 percent for males, 17.7

percent for females). The rate for female’s age 12-17 years

decreased significantly between 1997 and 1998, from 20.7

percent to 17.7 percent.

The rate of current smokeless tobacco use was significantly

higher for men than for women in 1998 (5.9 percent vs. 0.5

percent). About 91 percent of smokeless tobacco users were

men. Similarly, males were more likely than females to use

cigars (11.9 percent vs. 2.3 percent).

Region/Urban-city

The rate of current cigarette use was 32.0 percent in the

North Central region, 27.9 percent in the South, 25.5 percent

in the Northeast, and 24.5 percent in the West. The rate of

smoking was 26.5 percent in large metropolitan areas, 27.2

percent in small metropolitan areas, and 30.5 percent in non-

metropolitan areas.

Education

Level of educational attainment was correlated with tobacco

usage. Fifty percent of adult’s

age 26-34 who had not

completed high school smoked

cigarettes, while only 15

percent of college graduates in this age group smoked. The

opposite relationship was found for cigar use: 10.7 percent of

college graduates age 26-34 were current cigar smokers,

compared to 7.5 percent of those who had not completed high

school.

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Tobacco as a "Gateway Drug"

Youths age 12-17 who currently smoked cigarettes were 11.4

times more likely to use illicit drugs and 16 times more likely

to drink heavily than nonsmoking youths.

An estimated 5.6 percent of youths age 1217 were current

cigar smokers in 1998. This compares to 5.0 percent in 1997,

not a statistically significant difference.

Between 1997 and 1998, there was no change in the

percentages of youths age 12-17 reporting great risk from

using cigarettes, marijuana, cocaine, or alcohol.

The current rate of smoking among young adults age 18-25

has increased from 34.6 percent in 1994 to 40.6 percent in

1997 and 41.6 percent in 1998.

Survey Design

This survey is the primary source of statistical information on

the use of illegal drugs by the United States population.

Conducted since 1971, the survey collects data by

administering questionnaires to a representative sample of

the population at their place of residence. The survey covers

residents of households, no institutional group quarters (e.g.,

shelters, rooming houses, dormitories), and civilians living on

military bases. Persons excluded from the survey include

homeless people who do not use shelters, active military

personnel, and residents of institutional group quarters, such

as jails and hospitals.

Interviews were conducted with 25,500 persons between

January and December 1998. Response rates for household

screening and for interviewing were 93.0 percent and 77.0

percent, respectively. The sample design over sampled

Blacks, Hispanics, and young people, to improve the

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accuracy of estimates for those populations. In addition,

residents of Arizona and California were over sampled to

provide direct survey estimates for these state populations.

Editorial Note:

The National Household Survey on Drug Abuse is one of the

most carefully conducted surveys in the nation. The sample

coverage and the response rate are very good. The survey

administration methods are designed to elicit accurate

responses even to very sensitive questions.

Cigarette smoking has declined slightly among older adults

and adolescent females, has remained stable among

adolescent males, and has increased substantially among

young adults (18-25 years of age). Smokeless tobacco use

has remained stable, and cigar smoking has increased.

More attention must be paid to prevention and cessation

of smoking among young adults as 42% of these groups

now smoke cigarettes.

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Recreational Drug use alternate to Cigarette

Table # 3: Recreational drug use

Major Recreational Drugs

Cannabinoids THC (Cannabis · Hashish · Hash oil)

Depressants Barbiturates · Benzodiazepines · Ethanol (Alcoholic beverages) · GHB · Nonbenzodiazepines · Kava

Entactogens MDA · MDMA (Ecstasy)

Hallucinogens

Psychedelics

Bufotenin (Yopo · Vilca · Psychoactive toads) · DMT (Ayahuasca) · LSD-25 · Mescaline (Peyote · San Pedro · Peruvian Torch) · Psilocybin & Psilocin (Psilocybin mushrooms)

Dissociatives

DXM · Inhalants (Nitrous oxide) · Ketamine · PCP · Salvinorin A (Salvia divinorum)

Deliriants Datura · Deadly Nightshade · Henbane · Mandrake

Opioids Codeine · Diacetylmorphine (heroin) · Hydrocodone · Morphine (Opium) · Oxycodone · Kratom

Stimulants

Amphetamine · Arecoline (Areca) · Betel · Caffeine (Coffee - Tea) · Cathinone (Khat) · Cocaine (Coca) · Ephedrine (Ephedra) · Methamphetamine · Methylphenidate · Nicotine (Tobacco) · Theobromine (Cocoa)

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Culture and Related Topics

Cannabis 420 · Stoner Film · Spiritual Use of Cannabis · Medical Cannabis · Cannabis Cultivation · Cannabis smoking

Psychedelic Art · Drug · Experience · Literature · Music

Other

Counterculture of the 1960s · Club Drug · Dance Party · Drug Tourism · Drug Paraphernalia · Hippie · Party and Play · Poly Drug Use · Rave · Sex and Drugs Spiritual use of drugs

Problems with Drug Use Abuse · Addiction (Prevention · Rehabilitation · Responsible Use) · Illegal Trade · Overdose

Legality of Drug Use

International 1961 Narcotic Drugs · 1971 Psychotropic Substances · 1988 Drug Trafficking

State Level Drug Policy (Prohibition · Decriminalization) · Policy Reform (Liberalization · Harm Reduction · Demand Reduction)

Other Designer Drug · Drug Possession · Drug Test · Hard and Soft Drugs · Narc · War on Drugs

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3.4 Tobacco industry in Pakistan

Pakistan with a population of 160 million is the 7th most

populous country in the world. The health and demographic

situation in Pakistan is characterized by a high birth rate (29

per 1000) a comparatively low death rate (8 per 1000) and a

consequent rapid population growth rate of 1.9 %. The infant

mortality rate of 72 per 1000 live births and maternal mortality

of 400 per 10000 deliveries is still very high[i].

Tobacco use in Pakistan:

Tobacco use in Pakistan is common and one of the highest in

the South East Asian Region. There are about 22 million

smokers in the country and 55% of the households have at

least one individual who smokes tobacco[ii]. As a result

Pakistan accounts for a sizeable proportion of the cigarettes

consumed in South Asia as shown below in Figure 1[iii]. In

Pakistan about 100,000 people die annually from diseases

caused by use of tobacco.[iv]

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Figure 1: Percentage of Total Cigarette Consumption in SA Region, 1999

Tobacco consumption does not only occur in the form of

cigarettes but also includes beedis (hand rolled cigarettes),

Huqqa (water pipe) and chewing tobacco. According to the

National Health Survey of Pakistan 1998, 54% men and 20%

women used tobacco in one form or the other.[v] WHO-EMRO

(Eastern Mediterranean Regional Office) website[vi] quoting

the National Health Survey[vii] states that 36 % of adult men

and 9 percent of adult women smoke in Pakistan.

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Global Youth Tobacco Survey (GYTS) supported by WHO

and conducted in Pakistan focused on adolescents aged 13-

15 years. GYTS reported 1.7% of the students (2.5% boys

and 0.5% girls) having smoked cigarettes in the month prior to

the survey.[viii]

The above information has been contributed by Dr. Ehsan Latif taken from his paper entitled: ‘An assessment of the impact of the Framework Convention on Tobacco Control on tobacco control policies in Pakistan’, submitted to London School of Hygiene and Tropical Medicine as partial fulfillment of MSc. Public Health course.

[i] World Health Statistics 2007 http://www.who.int/whosis/en/index.html accessed 21 July 2007 (1600 GMT) [ii] Pakistan Health Education Survey, 1991. Ministry of Health, Government of Pakistan, Islamabad. [iii] Economics of Tobacco for the South Asia (SA) Region June 18, 2001 Available at http://siteresources.worldbank.org/INTETC/Resources/3759901089913200558/SouthAsia.pdf [iv] Pakistan Health Education Survey, 1999 –Pakistan Medical Research Council, G 5, Islamabad

[v] Pakistan Medical Research Council. National Health Survey of Pakistan 1990-94. Islamabad, Pakistan: Pakistan Medical Research Council, Network Publication Service, 1998. [vi] Tobacco Control Country Profiles 2003, American Cancer Society, Atlanta, GA, 2003 http://www.emro.who.int accessed 10 July 2007 (1000 hrs GMT) [vii] Pakistan Medical Research Council. Pakistan Health Education Survey (ISBN: 969-499-003-3 [pbk]). Islamabad, Pakistan: Pakistan Medical Research Council, 2003

[viii] World Health Organization. Global Youth Tobacco Survey: Tobacco-free Initiative. Cairo, Egypt:

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3.5 List of countries by cigarette consumption per capita

This is a list of countries by annual per capita consumption of tobacco cigarettes.

Cigarettes are smoked by over 1.1 billion people. While

smoking rates have leveled off or declined in developed

nations, in developing nations tobacco consumption continues

to rise at a rate of around 3.4% per annum.

Smoking rates in the United States have dropped by half from

1965 to 2006 falling from 42% to 20.8% of adults. There are

large regional differences in smoking rates, with Kentucky,

West Virginia, Oklahoma and Mississippi topping the list, and

Idaho, California and Utah at significantly lower rates.

In Australia the incidence of smoking is in decline, with figures

from 2004-5 showing 23% of the population to be current

smokers, a decline of 2% compared to 1995. Amongst the

indigenous population, the rate is much higher, with 51% of

men and 49% of women reported being current daily

smokers. Young adults are the most likely age group to

smoke, with a marked decline in smoking rates with

increasing age. The prevalence of smoking is strongly

associated with socioeconomic disadvantage, with over

double the rate in the most disadvantaged quintile of the

population as compared to the least.

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List

Ranking Country

Number

of

cigarettes

per adult

per year

1 Greece 3,017

2 Slovenia 2,537

3 Ukraine 2,526

4 Bulgaria 2,437

5 Czech

Republic 2,368

6 Macedonia 2,336

7 Russia 2,319

8 Moldova 2,239

9 Spain 2,225

10 Bosnia &

Herzegovina 2,145

11 Armenia 2,083

12 Japan 2,028

13 Latvia 1,890

14 Croatia 1,849

15 Belarus 1,846

16 Lebanon 1,837

17 Cyprus 1,830

18 Poland 1,810

19 Kazakhstan 1,805

20 Belgium 1,763

21 South Korea 1,733

22 Estonia 1,718

23 Switzerland 1,698

24 Austria 1,684

25 China 1,648

26 Hungary 1,623

27 Italy 1,596

28 Tunisia 1,532

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29 Kuwait 1,509

30 Turkey 1,499

31 Denmark 1,495

32 Romania 1,480

33 Slovakia 1,430

34 Ireland 1,391

35 Trinidad and

Tobago 1,337

36 Portugal 1,318

37 Malta 1,287

38 Albania 1,201

39 United States 1,196

40 Israel 1,173

41 Australia 1,130

42 Germany 1,125

43 United Arab

Emirates 1,092

44 Azerbaijan 1,089

45 Egypt 1,082

46 Philippines 1,073

47 Syria 1,067

48 Georgia 1,040

49 Kyrgyzstan 1,017

50 Argentina 1,014

50 Cuba 1,010

52 Indonesia 974

53 Paraguay 968

54 Finland 956

55 Lithuania 920

56 Chile 909

57 Canada 897

58 Netherlands 888

59 Vietnam 887

60 France 876

61 Libya 860

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62 Jordan 846

63 Mauritius 846

64 Uruguay 793

65 United

Kingdom 790

66 Iraq 784

67 Iran 764

68 Sweden 751

69 North Korea 714

70 Saudi Arabia 648

71 Malaysia 646

72 Thailand 634

73 Venezuela 622

74 Brazil 580

75 Algeria 577

76 New Zealand 565

77 Costa Rica 552

78 Laos 544

79 South Africa 511

80 Hong Kong 499

81 Turkmenistan 496

82 Norway 493

83 Jamaica 480

84 Colombia 479

85 Mexico 470

86 Honduras 450

87 Cambodia 447

88 Morocco 430

89 Singapore 406

90 Angola 397

91 Pakistan 391

92 Nicaragua 386

93 Senegal 380

94 Dominican

Republic 335

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95 Guatemala 325

96 Uzbekistan 317

96 Yemen 317

98 Togo 306

99 Panama 291

100 Madagascar 276

101 El Salvador 275

102 Nepal 274

103 Ecuador 234

104 Mozambique 213

105 Myanmar 209

106 Sri Lanka 205

107 Côte d'Ivoire 198

108 Bolivia 178

109 Bangladesh 172

110 Kenya 167

111 Cameroon 141

112

Democratic

Republic of

the Congo

131

113 Peru 129

114 Tanzania 108

115 Nigeria 103

116 India 99

117 Zimbabwe 86

118 Ghana 80

119 Sudan 75

120 Zambia 71

121 Ethiopia 52

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CHAPTER NO. 4 HYPOTHESIS TESTING

4.1 Population and Sample Size

4.2 Data Gathering Instruments

4.3 Procedure Followed To Gather Data

4.4 Statement of the Hypothesis

4.5 Statistical Techniques

4.6 Methodology

4.7 Solution and Evaluations

4.8 Frequency Tables

4.9 Hypothesis Testing

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4.1 Population and Sample Size

Sekaran (2000 p 255) defines a population as “entire group of

people, events or things of interest that a researcher wants to

research”

I have selected a population as people of Karachi City Population of

2-Crors, which is the largest city of Pakistan. I have selected this

population as per my convenience. I per statistics Karachi is the

only city to which people from almost all cities migrate and having

said that it has population of 2 million, almost all type of professions

have been adopted by this population. Therefore it will be easy for

me to get the cigarette consumers from all the occupations.

Occupations include managerial as well as labor work.

Leary (2004, p. 118) defines sampling as, “the process by which a

researcher selects a sample of participants for a study from the

population of interest”.

A total of 263 questionnaires were sent manually to respondents

and a total of 263 completed the questionnaire but responses of

some of the questions are ambiguous. According to Sekaran

(2001), a response rate of thirty percent is acceptable for most

studies. The response rate for this study was ninety eight percent

(98%). A convenience sample was used, which according to Leary

(2004) refers to a sample of participants that are readily available.

Such samples, he postulates, are used because they are easy to

obtain and not representative of people in general. Therefore the

finding of studies, such as the present one which utilizes

convenience sampling, is low in generalizability.

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4.2 Data Gathering Instruments

For the purpose of this study a quantitative methodology was

followed and a questionnaire was used as the measuring

instrument. According to Leary (2004), the major advantages of

questionnaires are that they can be administered to groups of

people simultaneously, and they are less costly and less time-

consuming than other measuring instruments.

4.3 Procedure Followed To Gather Data

This section describes how the researcher gathered the relevant

data for this study. Although known to the population, the

researcher relied on random sampling to obtain access to the

sample. The researcher has direct contact with the population and

therefore had more influence in terms of creating a sense of

urgency to complete the questionnaires.

Each respondent was given a time of 15 minutes to understand and

fill the questionnaire. While making a questionnaire I tried my best

to make it as easy as possible so that there will be no difficulty for

respondents to fill the questionnaire.

4.4 Statement of the Hypothesis

1. Consumers belong to same AGE group prefer same brand of

cigarettes.

2. Consumers belong to same group of INCOME prefer same

brand of cigarettes.

3. Consumers belong to same rate of CONSUMPTION group prefer

same brand of cigarettes.

4. Consumers belong to same OCCUPATION prefer same brand of

cigarettes.

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5. Consumers belong to same LOCATION prefer same brand of

cigarettes.

6. Consumers belonging to same OCCUPATION have same rate of

CONSUMPTION of cigarettes.

4.5 Statistical Techniques

DATA ANALYSIS

The statistical programmed used for the analyses and presentation

of data in this research is the Statistical Package for the Social

Sciences (SPSS) version 12. The descriptive statistics utilized are

based on frequency tables and graphical illustrations to provide

information on key demographic variables in this study. This is

followed with presentation of the inferential statistics based on

examination of each hypothesis formulated for the research. The

upper level of statistical significance for null hypothesis testing was

set at 5%. All statistical test results were computed at the 2-tailed

level of significance in accordance with the non-directional

hypotheses presented (Sekaran, 2001).

STATISTICAL ANALYSES

According to Leary (2004, p. 37), “statistical analyses are used to

describe an account for the observed variability in the behavioral

data.” This involves the process of analyzing the data that has been

collected. Thus the purpose of statistics is to summaries and

answer questions about the behavioral variability that was obtained

in the research. Statistical analyses involve both descriptive and

inferential statistics.

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DESCRIPTIVE STATISTICS

Descriptive statistics are used to describe and summaries the

behavior of the respondents in a study. They refer to the ways in

which a large number of scores or observations are reduced to

interpretable numbers such as averages and percentages.

The descriptive statistics utilized in this study are based on

frequency tables and graphical illustrations to provide information

on key demographic variables, as well as the means and standard

deviations for the responses on the Work Motivation and

Satisfaction Questionnaire.

INFERENTIAL STATISTICS

Inferential statistics are used to draw conclusions about the

reliability and generalizability of the findings. According to Leary

(2004, p. 38), inferential statistics are used to assist in answering

questions such “How likely is it that my findings are due to random

extraneous factors rather than to the variables of central interest in

the study? How representative are the findings of the larger

population from which the sample was taken?” In order to test the

research hypotheses, the inferential tests used include the Pearson

Product-Moment Correlation Coefficient, Multiple Regression

Analysis and Analysis of Variance (ANOVA).

4.6 METHODOLOGY

The methodology we have adopted for the subject study is briefly

discussed below:

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SELECTING BRAND NAMES FOR THE QUESTIONNAIRE

Pan shops, super markets, retailer stores and cigarette consumer

were asked about brand names & then it was put in to the

questionnaire. So that respondents can identify his\her brand of

choice on this question and if their brand of choice is not there

he\she can reply on the option of “others”

DATA COLLECTION METHOD

Data was collected through a questionnaire which was distributed

on different locations and some were filled or noted down through

an informal interviewc form some of respondents.

VARIABLE AND MEASURES

Our Questionnaire was based on nine different questions, out of

which five were related to personal information (gender, age,

occupation, income & location); a Nominal Scale was used to

measure the personal data. The other remaining four were related

to independent variables like: Do you smoke? How long have you

been smoking? Which brand do you smoke? & how many

cigarettes do you smoke per day).

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4.6 Solutions and Evaluation

Frequencies

Table # 4: Statistics

Interpretation

263 out of 263 respondents replied on gender, age, do you

smoke & where do you live, no one was found missing.

226 out of 263 respondents replied on how long you have been

smoking & how many cigarettes per day, 37 found to be missing

in both.

227 out of 263 respondents replied on what is your occupation,

36 were found missing.

226 out of 263 respondents replied on which brand you smoke,

37 found to be missing.

220 out of 263 respondents replied on what is your income, 43

found to be missing.

Statistics

263 263 263 226 226 227 226 220 263

0 0 0 37 37 36 37 43 0

Valid

Missing

N

what is

your

gender

what

is your

age

do you

smoke

how long

have you

been

smoking

how

many

cigrettes

per day

what is

your

ocupation

which

brand

do you

smoke

what is

your

income

where

do you

live

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

54

4.7 Frequency Tables

Table # 5: What is your Gender

233 male respondents were male having valid percentage of 88.6%

and 30 were female having valid percentage of 11.4% no one was

found missing.

Chart #3: What is your Gender

what is your gender

233 88.6 88.6 88.6

30 11.4 11.4 100.0

263 100.0 100.0

male

female

Total

Valid

Frequency Percent Valid Percent

Cumulative

Percent

femalemale

what is your gender

100

80

60

40

20

0

Percen

t

11.41%

88.59%

what is your gender

The Brand Preferences of Cigarette in Pakistan

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55

Table # 6: What is your Age

According to age group, 2.7 % belong to 16-17 age groups

with 7 frequencies, 14.8 % belong to 18-20 age groups with

39 frequencies, 24% belong to 21-25 age groups with 63

Frequencies, 14.4% belong to 26-30 age groups with 38

frequencies, 13.7% belong to 31-35 age groups with 36

frequencies, 8 % belong to 36-40 age groups with21

frequencies, 11.4% belong to 41-45 age groups with 30

frequencies, 5.7% belong to 46-50 age groups with 15

frequencies, 5.3% belong to 50 & above age groups with 14

frequencies

what is your age

7 2.7 2.7 2.7

39 14.8 14.8 17.5

63 24.0 24.0 41.4

38 14.4 14.4 55.9

36 13.7 13.7 69.6

21 8.0 8.0 77.6

30 11.4 11.4 89.0

15 5.7 5.7 94.7

14 5.3 5.3 100.0

263 100.0 100.0

16-17

18-20

21-25

26-30

31-35

36-40

41-45

46-50

50 & above

Total

ValidFrequency Percent Valid Percent

Cumulative

Percent

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

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50 &above

46-5041-4536-4031-3526-3021-2518-2016-17

what is your age

25

20

15

10

5

0

Pe

rce

nt

5.32%5.7%

11.41%

7.98%

13.69%14.45%

23.95%

14.83%

2.66%

what is your age

do you smoke

25 9.5 9.5 9.5

225 85.6 85.6 95.1

13 4.9 4.9 100.0

263 100.0 100.0

no

yes

already quited

Total

Valid

Frequency Percent Valid Percent

Cumulative

Percent

Chart #4: What is your Age

Table #7: Do you Smoke

25 respondents replied they do not smoke which is 9.5%,

225 replied yes they smoke which is 85.6%, 13 replied that

they had quite smoking which is 4.9%, no data was found

missing.

The Brand Preferences of Cigarette in Pakistan

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57

Respondents were asked to reply on “how long have you

been smoking”, in which 37 respondent are missing due to

they are not smoker which holds 14.1%.

30.1% valid percentd have been smoking from 1-5 years,

36.7% valid percent have been smoking from 6-10 years &

d the percentage of non missing data

already quitedyesno

do you smoke

100

80

60

40

20

0

Pe

rce

nt

4.94%

85.55%

9.51%

do you smoke

how long have you been smoking

68 25.9 30.1 30.1

83 31.6 36.7 66.8

75 28.5 33.2 100.0

226 85.9 100.0

37 14.1

263 100.0

1-5 years

6-10 years

11 years & above

Total

Valid

SystemMissing

Total

Frequency Percent Valid Percent

Cumulative

Percent

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

58

how many cigrettes per day

21 8.0 9.3 9.3

39 14.8 17.3 26.5

46 17.5 20.4 46.9

63 24.0 27.9 74.8

57 21.7 25.2 100.0

226 85.9 100.0

37 14.1

263 100.0

0-5

6-10

11-15

16-20

25 & above

Total

Valid

SystemMissing

Total

Frequency Percent Valid Percent

Cumulative

Percent

28.5% valid percent have been smoking from 11 years &

above.

Respondents were asked to reply on “how many cigarettes

per day you smoke”, in which 37 respondent are missing due

to they are not smoker which holds 14.1%.

11 years & above6-10 years1-5 years

how long have you been smoking

40

30

20

10

0

Percen

t

33.19%36.73%

30.09%

how long have you been smoking

The Brand Preferences of Cigarette in Pakistan

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25 & above16-2011-156-100-5

how many cigrettes per day

30

25

20

15

10

5

0

Pe

rce

nt

25.22%27.88%

20.35%17.26%

9.29%

how many cigrettes per day

what is your ocupation

17 6.5 7.5 7.5

20 7.6 8.8 16.3

21 8.0 9.3 25.6

20 7.6 8.8 34.4

19 7.2 8.4 42.7

31 11.8 13.7 56.4

56 21.3 24.7 81.1

43 16.3 18.9 100.0

227 86.3 100.0

36 13.7

263 100.0

professional

management

technical

sales

financial

business man

student

others

Total

Valid

SystemMissing

Total

Frequency Percent Valid Percent

Cumulative

Percent

9.5% valid percent is smoking 0-5 cigarettes per day, 17.3%

valid percent is smoking 6-10 cigarettes per day, 20.4% valid

percent is smoking 11-15 cigarettes per day, 20.4% 27.9%

valid percent is smoking 16-20 cigarettes per day & 25% valid

percent is smoking 25 & above cigarettes per day.

Respondents were asked to reply on “what is your

occupation”, in which 36 respondent are missing because

they are not smokers which holds 13.7%.

7.5% valid percent belong to professional, 8.8% valid

percent belong to management, 9.3% valid percent belong to

technical, 8.8% valid percent belongs to sales, 8.4% valid

percent belong to financial, 13.7% valid percent belongs to

The Brand Preferences of Cigarette in Pakistan

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which brand do u smoke

32 12.2 14.2 14.2

29 11.0 12.8 27.0

15 5.7 6.6 33.6

1 .4 .4 34.1

79 30.0 35.0 69.0

3 1.1 1.3 70.4

3 1.1 1.3 71.7

20 7.6 8.8 80.5

11 4.2 4.9 85.4

8 3.0 3.5 88.9

2 .8 .9 89.8

5 1.9 2.2 92.0

1 .4 .4 92.5

2 .8 .9 93.4

15 5.7 6.6 100.0

226 85.9 100.0

37 14.1

263 100.0

benson & hedges

capstan

dunhill

diplomet

goldleaf

goldflake

K2

marlboro

more

morven gold

pine

red & white

555

others

No preference

Total

Valid

SystemMissing

Total

Frequency Percent Valid Percent

Cumulative

Percent

othersstudentbusinessman

financialsalestechnicalmanagement

professional

what is your ocupation

25

20

15

10

5

0

Pe

rce

nt

18.94%

24.67%

13.66%

8.37%8.81%9.25%8.81%7.49%

what is your ocupation

business man, 24.7% valid percent belongs to students &

18.9% valid percent belong to others.

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

61

Respondents were asked to reply on “which brand do you

smoke”, in which 37 respondents are missing because they

are not smokers which holds 14.1%.

14.2 % smokes Benson & hedges, 12.2% smokes Capstan,

6.6% smokes Dunhill, 0.4% smokes Diplomat, 35.0% smokes

Gold leaf, 1.3% smokes Gold flake, 1.3% smokes K-2, 8.8%

smokes Marlboro, 4.9% smokes More, 3.5% smokes Morven

gold, 0.9% smokes Pine, 2.2% smokes Red & White, 0.4

smokes 555, 0.9% smokes other brands.

No Preference e on cigarettes brand was given by 6.6% of

respondent.

e smoke more than one brand

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

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Nopref...

others

555red &white

pinemorven...

moremarlboro

K2goldflake

goldleaf

diplomet

dunhill

capstan

benson ...

which brand do u smoke

40

30

20

10

0

Pe

rce

nt

6.64%0.88%0.44%2.21%0.88%3.54%4.87%

8.85%1.33%1.33%

34.96%

0.44%6.64%

12.83%14.16%

which brand do u smoke

what is your income

25 9.5 11.4 11.4

15 5.7 6.8 18.2

30 11.4 13.6 31.8

51 19.4 23.2 55.0

61 23.2 27.7 82.7

38 14.4 17.3 100.0

220 83.7 100.0

43 16.3

263 100.0

500-1,500

1,600-3,000

4,000-5,000

6,000-10,000

11,000-20,000

21,000 & above

Total

Valid

SystemMissing

Total

Frequency Percent Valid Percent

Cumulative

Percent

Respondents were asked to reply on “what is your monthly

income/pocket money”, in which 43 respondent are missing

because they are not smokers which holds 16.3%.

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

63

21,000 &above

11,000-20,000

6,000-10,0004,000-5,0001,600-3,000500-1,500

what is your income

30

25

20

15

10

5

0

Pe

rce

nt

17.27%

27.73%

23.18%

13.64%

6.82%

11.36%

what is your income

11.4% belongs to monthly income group of R.s 500-1,500,

6.8% belong to monthly income group of R.s 1,600-3,000,

13.4% belongs to monthly income group of R.s 4,000-5,000,

23% belongs to monthly income group of R.s 6,000-10,000,

27.7% belongs to monthly income group of R.s 11,000-20,000

& 17.3% belongs to monthly income group of R.s 21,000 &

above.

The Brand Preferences of Cigarette in Pakistan

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64

Due to our subject location or area was very important so we

selected small areas to get our result. For that we divided it in

to 25 areas

where do you live

16 6.1 6.1 6.1

19 7.2 7.2 13.3

12 4.6 4.6 17.9

9 3.4 3.4 21.3

17 6.5 6.5 27.8

14 5.3 5.3 33.1

3 1.1 1.1 34.2

8 3.0 3.0 37.3

4 1.5 1.5 38.8

9 3.4 3.4 42.2

2 .8 .8 43.0

16 6.1 6.1 49.0

12 4.6 4.6 53.6

15 5.7 5.7 59.3

10 3.8 3.8 63.1

14 5.3 5.3 68.4

8 3.0 3.0 71.5

6 2.3 2.3 73.8

5 1.9 1.9 75.7

13 4.9 4.9 80.6

11 4.2 4.2 84.8

10 3.8 3.8 88.6

7 2.7 2.7 91.3

13 4.9 4.9 96.2

10 3.8 3.8 100.0

263 100.0 100.0

Clifton

Defence

F.B area

Garden

Gulshan

Gulistan-e-johar

Lasbela

Liaqatabad

Landhi

Malir

Liary

Nazimabad

New karachi

Tariq road

Saddar

P.E.C.H.S

Maripur

korangi

Light house

K.D.A

Azizabad

Jahangir road

Akhter colony

Hill Park

Cantt

Total

Valid

Frequency Percent Valid Percent

Cumulative

Percent

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

65

Cantt

HillPark

Akhter

colony

Jahangirroad

Azizabad

K.D.A

Lighthous

e

korangi

Maripur

P.E.C.H.

S

Saddar

Tariq

road

Newkarachi

Nazimabad

Liary

Malir

Landhi

Liaqatabad

Lasbela

Gulistan-e-

johar

Gulshan

Garden

F.Barea

Defence

Clifton

where do you live

8

6

4

2

0

Perc

en

t

3.8%

4.94%

2.66%

3.8%4.18%

4.94%

1.9%2.28%

3.04%

5.32%

3.8%

5.7%

4.56%

6.08%

0.76%

3.42%

1.52%

3.04%

1.14%

5.32%

6.46%

3.42%

4.56%

7.22%

6.08%

where do you live

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

66

Case Processing Summary

74 93.7% 5 6.3% 79 100.0%which brand do u smoke

* what is your age

N Percent N Percent N Percent

Valid Missing Total

Cases

4.8 HYPOTHESIS TESTING

HYPOTHESIS 1

Consumers belonging to same AGE group prefer same brand

of cigarettes.

H1o:- consumers belonging to same age group do not smoke

same brand of cigarette.

H1a:- consumers belonging to same age group smoke same

brand of cigarette

To prove this hypothesis cross tab was done:

Age was considered as independent.

93.7% have responded & 6.3% are been found missing

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

67

which brand do u smoke * what is your age Crosstabulation

0 4 5 5 4 2 8 4 0 32

.6 5.0 7.4 5.2 4.5 2.5 3.7 2.0 1.1 32.0

.0% 1.8% 2.2% 2.2% 1.8% .9% 3.5% 1.8% .0% 14.2%

1 4 9 3 1 6 3 1 1 29

.5 4.5 6.7 4.7 4.1 2.3 3.3 1.8 1.0 29.0

.4% 1.8% 4.0% 1.3% .4% 2.7% 1.3% .4% .4% 12.8%

0 2 3 5 1 1 2 1 0 15

.3 2.3 3.5 2.5 2.1 1.2 1.7 .9 .5 15.0

.0% .9% 1.3% 2.2% .4% .4% .9% .4% .0% 6.6%

0 0 0 1 0 0 0 0 0 1

.0 .2 .2 .2 .1 .1 .1 .1 .0 1.0

.0% .0% .0% .4% .0% .0% .0% .0% .0% .4%

2 19 17 15 12 0 6 4 4 79

1.4 12.2 18.2 12.9 11.2 6.3 9.1 4.9 2.8 79.0

.9% 8.4% 7.5% 6.6% 5.3% .0% 2.7% 1.8% 1.8% 35.0%

0 0 0 1 1 0 1 0 0 3

.1 .5 .7 .5 .4 .2 .3 .2 .1 3.0

.0% .0% .0% .4% .4% .0% .4% .0% .0% 1.3%

0 1 0 0 0 1 1 0 0 3

.1 .5 .7 .5 .4 .2 .3 .2 .1 3.0

.0% .4% .0% .0% .0% .4% .4% .0% .0% 1.3%

0 1 3 1 6 3 4 1 1 20

.4 3.1 4.6 3.3 2.8 1.6 2.3 1.2 .7 20.0

.0% .4% 1.3% .4% 2.7% 1.3% 1.8% .4% .4% 8.8%

1 1 5 1 2 1 0 0 0 11

.2 1.7 2.5 1.8 1.6 .9 1.3 .7 .4 11.0

.4% .4% 2.2% .4% .9% .4% .0% .0% .0% 4.9%

0 0 2 1 2 3 0 0 0 8

.1 1.2 1.8 1.3 1.1 .6 .9 .5 .3 8.0

.0% .0% .9% .4% .9% 1.3% .0% .0% .0% 3.5%

0 0 0 1 0 0 0 0 1 2

.0 .3 .5 .3 .3 .2 .2 .1 .1 2.0

.0% .0% .0% .4% .0% .0% .0% .0% .4% .9%

0 0 2 1 1 1 0 0 0 5

.1 .8 1.2 .8 .7 .4 .6 .3 .2 5.0

.0% .0% .9% .4% .4% .4% .0% .0% .0% 2.2%

0 0 0 0 0 0 0 1 0 1

.0 .2 .2 .2 .1 .1 .1 .1 .0 1.0

.0% .0% .0% .0% .0% .0% .0% .4% .0% .4%

0 1 0 0 0 0 0 0 1 2

.0 .3 .5 .3 .3 .2 .2 .1 .1 2.0

.0% .4% .0% .0% .0% .0% .0% .0% .4% .9%

0 2 6 2 2 0 1 2 0 15

.3 2.3 3.5 2.5 2.1 1.2 1.7 .9 .5 15.0

.0% .9% 2.7% .9% .9% .0% .4% .9% .0% 6.6%

4 35 52 37 32 18 26 14 8 226

4.0 35.0 52.0 37.0 32.0 18.0 26.0 14.0 8.0 226.0

1.8% 15.5% 23.0% 16.4% 14.2% 8.0% 11.5% 6.2% 3.5% 100%

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

benson &

hedges

capstan

dunhill

diplomet

goldleaf

goldflake

K2

marlboro

more

morven

gold

pine

red &

white

555

others

No

preference

which

brand

do u

smoke

Total

16-17 18-20 21-25 26-30 31-35 36-40 41-45 46-50

50 &

above

what is your age

Total

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

68

which brand do u smoke

No preference

others555

red & white

pine

morven gold

more

marlboro

K2

goldflake

goldleaf

diplomet

dunhill

capstan

benson & hedges

Co

un

t

20

10

0

what is your age

16-17

18-20

21-25

26-30

31-35

36-40

41-45

46-50

50 & above

The Brand Preferences of Cigarette in Pakistan

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15 out of 226 respondents to No Preference f having 6.6%

Consumers belonging to age group 16-17 prefer = gold leaf

0.9%.with a count of 2 out of 4 responded.

Consumers belonging to age group 18-20 prefer = gold leaf

8.4%.with a count of 19 out of 35 responded.

Consumers belonging to age group 21-25 prefer = gold leaf

7.5%.with a count of 17 out of 52 responded.

Consumers belonging to age group 26-30 prefer = gold leaf

6.6%.with a count of 15 out of 37 responded.

Consumers belonging to age group 31-35 prefer = gold leaf

5.3%.with a count of 12 out of 32 responded.

Consumers belonging to age group 36-40 prefer = capstan

2.7%.with a count of 6 out of 18 responded.

Consumers belonging to age group 41-45 prefer = Benson &

hedges 3.5%.with a count of 8 out of 26 responded.

Consumers belonging to age group 46-50 prefer = gold leaf &

Benson & hedges both having 1.4 %.with a count of 4 out of

14 responded.

Consumers belonging to age group 46-50 prefer = gold leaf

having 1.4 %.with a count of 4 out of 8 responded.

f smoke more than one brand

The Brand Preferences of Cigarette in Pakistan

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With level of significance of 0.041,

Therefore:

We cannot accept H1o

H1o:- consumers belonging to same age group do not smoke

same brand of cigarette.

We will accept H1a that is

H1a:- consumers belonging to same age group smoke a

same brand of cigarette

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

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Case Processing Summary

220 83.7% 43 16.3% 263 100.0%which brand do u smoke

* what is your income

N Percent N Percent N Percent

Valid Missing Total

Cases

HYPOTHESIS 2

Consumers belonging to same INCOME group prefer same

brand of cigarettes.

H1o:- consumers belonging to same income group do not

smoke same brand of cigarette.

H1a:- consumers belonging to same income group smoke

same brand of cigarette

To prove this hypothesis cross tab was done:

Income was considered as independent.

83.7% have responded & 16.3% are been found missing

The Brand Preferences of Cigarette in Pakistan

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Nopreference

others

555red &white

pinemorven

gold

moremarlboro

K2goldflake

goldleaf

diplomet

dunhill

capstan

benson &hedges

which brand do u smoke

30

25

20

15

10

5

0

Co

un

t

21,000 & above

11,000-20,000

6,000-10,000

4,000-5,000

1,600-3,000

500-1,500

what is your income

Bar Chart

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

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which brand do u smoke * what is your income Crosstabulation

3 1 3 1 9 15 32

3.6 2.2 4.4 7.4 8.9 5.5 32.0

1.4% .5% 1.4% .5% 4.1% 6.8% 14.5%

0 1 9 15 3 0 28

3.2 1.9 3.8 6.5 7.8 4.8 28.0

.0% .5% 4.1% 6.8% 1.4% .0% 12.7%

2 1 0 2 5 4 14

1.6 1.0 1.9 3.2 3.9 2.4 14.0

.9% .5% .0% .9% 2.3% 1.8% 6.4%

0 0 1 0 0 0 1

.1 .1 .1 .2 .3 .2 1.0

.0% .0% .5% .0% .0% .0% .5%

15 7 7 18 29 2 78

8.9 5.3 10.6 18.1 21.6 13.5 78.0

6.8% 3.2% 3.2% 8.2% 13.2% .9% 35.5%

0 0 0 1 2 0 3

.3 .2 .4 .7 .8 .5 3.0

.0% .0% .0% .5% .9% .0% 1.4%

1 0 0 2 0 0 3

.3 .2 .4 .7 .8 .5 3.0

.5% .0% .0% .9% .0% .0% 1.4%

0 1 1 0 7 10 19

2.2 1.3 2.6 4.4 5.3 3.3 19.0

.0% .5% .5% .0% 3.2% 4.5% 8.6%

2 1 1 1 2 3 10

1.1 .7 1.4 2.3 2.8 1.7 10.0

.9% .5% .5% .5% .9% 1.4% 4.5%

0 0 5 2 0 1 8

.9 .5 1.1 1.9 2.2 1.4 8.0

.0% .0% 2.3% .9% .0% .5% 3.6%

0 0 0 2 0 0 2

.2 .1 .3 .5 .6 .3 2.0

.0% .0% .0% .9% .0% .0% .9%

0 1 2 0 2 0 5

.6 .3 .7 1.2 1.4 .9 5.0

.0% .5% .9% .0% .9% .0% 2.3%

0 0 0 0 0 1 1

.1 .1 .1 .2 .3 .2 1.0

.0% .0% .0% .0% .0% .5% .5%

1 0 0 0 0 1 2

.2 .1 .3 .5 .6 .3 2.0

.5% .0% .0% .0% .0% .5% .9%

1 2 1 7 2 1 14

1.6 1.0 1.9 3.2 3.9 2.4 14.0

.5% .9% .5% 3.2% .9% .5% 6.4%

25 15 30 51 61 38 220

25.0 15.0 30.0 51.0 61.0 38.0 220.0

11.4% 6.8% 13.6% 23.2% 27.7% 17.3% 100%

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

benson &

hedges

capstan

dunhill

diplomet

goldleaf

goldflake

K2

marlboro

more

morven

gold

pine

red &

white

555

others

No

preferenc

e

which

brand

do u

smoke

Total

500-1,500 1,600-3,000 4,000-5,000 6,000-10,000

11,000-

20,000

21,000

& above

what is your income

Total

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

74

14 out of 220 respondents to No Preference g having 6.4%

Consumers belonging to income group of R.S 500 – 1,500

prefer = gold leaf 6.8%.with a count of 15 out of 25

responded.

Consumers belonging to income group of R.S 1,600 – 3,000

prefer = gold leaf 3.2%.with a count of 7 out of 15 responded.

Consumers belonging to income group of R.S 4,000– 5,000

prefer = capstan 4.1%.with a count of 9 out of 30 responded.

Consumers belonging to income group of R.S 6,000– 10,000

prefer = gold leaf 8.2%.with a count of 18 out of 51

responded.

Consumers belonging to income group of R.S 11,000– 20,000

prefer = gold leaf 13.2%.with a count of 29 out of 61

responded.

Consumers belonging to income group of R.S 21,000 &

above prefer = Benson & hedges 6.8%.with a count of 15 out

of 38 responded.

With level of significance of 0.001, we can not accept H1o

H1o:- consumers belonging to same income group do not

smoke same brand of cigarette.

g smoke more than one brand

The Brand Preferences of Cigarette in Pakistan

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75

We will accept H1a that is

H1a:- consumers belonging to same age group smoke same

brand of cigarette

HYPOTHESIS 3

Consumers having same rate of cigarettes CONSUMPTIONh

prefers same brand of cigarettes.

H1o:- consumers having same rate of cigarettes consumption

group do not smoke same brand of cigarette.

H1a:- consumers having same rate of cigarettes consumption

group smoke same brand of cigarette.

To prove this hypothesis cross tab was done:

Consumption was considered as independent.

h cigarettes per day smoked

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

76

Nopreference

others

555red &white

pinemorven

gold

moremarlboro

K2goldflake

goldleaf

diplomet

dunhillcapstan

benson &

hedges

which brand do u smoke

25

20

15

10

5

0

Co

un

t

25 & above

16-20

11-15

6-10

0-5

how many cigrettes perday

Bar Chart

Case Processing Summary

226 85.9% 37 14.1% 263 100.0%

which brand do u

smoke * how many

cigrettes per day

N Percent N Percent N Percent

Valid Missing Total

Cases

85.9% have responded & 14.1% are been found missing

The Brand Preferences of Cigarette in Pakistan

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77

15 out of 226 respondents to No Preference i having 6.6%

Consumers who smokes 0-5 cigarettes per day prefer = gold

leaf 2.2%.with a count of 5 out of 21 responded.

Consumers who smokes 6-10 cigarettes per day prefer = gold

leaf 5.8%.with a count of 13 out of 39 responded.

Consumers who smokes 11-15 cigarettes per day prefer =

gold leaf 7.1%.with a count of 16 out of 46 responded.

Consumers who smokes 16-20 cigarettes per day prefer =

gold leaf 9.3%.with a count of 21 out of 63 responded.

Consumers who smokes 25 & above cigarettes per day prefer

= gold leaf 10.6%.with a count of 24 out of 57 responded.

With level of significance of 0.063, we can not accept H1o

H1o:- consumers having same rate of cigarettes consumption

group do not smoke same brand of cigarette.

We will accept H1a that is

H1a:- consumers having same rate of cigarettes consumption

group smoke same brand of cigarette.

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

78

Case Processing Summary

226 85.9% 37 14.1% 263 100.0%which brand do u smoke

* what is your ocupation

N Percent N Percent N Percent

Valid Missing Total

Cases

HYPOTHESIS 4

Consumers belonging to same OCUPATION prefers same

brand of cigarettes.

H1o:- consumers belonging to same occupation group do not

smoke same brand of cigarette.

H1a:- consumers belonging to same occupation smoke same

brand of cigarette

To prove this hypothesis cross tab was done:

Occupation was considered as independent.

85.9% have responded & 14.1% are been found missing

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

79

which brand do u smoke * what is your ocupation Crosstabulation

2 5 0 0 10 6 7 2 32

2.4 2.8 3.0 2.8 2.7 4.2 7.9 6.1 32.0

.9% 2.2% .0% .0% 4.4% 2.7% 3.1% .9% 14.2%

0 0 5 2 1 5 6 10 29

2.2 2.6 2.7 2.6 2.4 3.8 7.2 5.5 29.0

.0% .0% 2.2% .9% .4% 2.2% 2.7% 4.4% 12.8%

2 3 0 0 1 4 3 2 15

1.1 1.3 1.4 1.3 1.3 2.0 3.7 2.9 15.0

.9% 1.3% .0% .0% .4% 1.8% 1.3% .9% 6.6%

0 0 0 0 0 0 0 1 1

.1 .1 .1 .1 .1 .1 .2 .2 1.0

.0% .0% .0% .0% .0% .0% .0% .4% .4%

6 0 8 14 4 6 28 13 79

5.9 7.0 7.3 7.0 6.6 10.5 19.6 15.0 79.0

2.7% .0% 3.5% 6.2% 1.8% 2.7% 12.4% 5.8% 35.0%

0 1 0 0 0 0 0 2 3

.2 .3 .3 .3 .3 .4 .7 .6 3.0

.0% .4% .0% .0% .0% .0% .0% .9% 1.3%

0 0 0 0 0 0 1 2 3

.2 .3 .3 .3 .3 .4 .7 .6 3.0

.0% .0% .0% .0% .0% .0% .4% .9% 1.3%

2 7 3 1 0 6 1 0 20

1.5 1.8 1.9 1.8 1.7 2.7 5.0 3.8 20.0

.9% 3.1% 1.3% .4% .0% 2.7% .4% .0% 8.8%

3 3 0 0 1 0 4 0 11

.8 1.0 1.0 1.0 .9 1.5 2.7 2.1 11.0

1.3% 1.3% .0% .0% .4% .0% 1.8% .0% 4.9%

0 0 3 2 1 0 0 2 8

.6 .7 .7 .7 .7 1.1 2.0 1.5 8.0

.0% .0% 1.3% .9% .4% .0% .0% .9% 3.5%

0 0 0 0 0 1 0 1 2

.2 .2 .2 .2 .2 .3 .5 .4 2.0

.0% .0% .0% .0% .0% .4% .0% .4% .9%

0 0 1 0 1 0 1 2 5

.4 .4 .5 .4 .4 .7 1.2 1.0 5.0

.0% .0% .4% .0% .4% .0% .4% .9% 2.2%

0 0 0 0 0 1 0 0 1

.1 .1 .1 .1 .1 .1 .2 .2 1.0

.0% .0% .0% .0% .0% .4% .0% .0% .4%

0 0 0 0 0 0 1 1 2

.2 .2 .2 .2 .2 .3 .5 .4 2.0

.0% .0% .0% .0% .0% .0% .4% .4% .9%

2 1 1 1 0 1 4 5 15

1.1 1.3 1.4 1.3 1.3 2.0 3.7 2.9 15.0

.9% .4% .4% .4% .0% .4% 1.8% 2.2% 6.6%

17 20 21 20 19 30 56 43 226

17.0 20.0 21.0 20.0 19.0 30.0 56.0 43.0 226.0

7.5% 8.8% 9.3% 8.8% 8.4% 13.3% 24.8% 19.0% 100.0%

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

benson &

hedges

capstan

dunhill

diplomet

goldleaf

goldflake

K2

marlboro

more

morven

gold

pine

red &

white

555

others

No

preferenc

e

which

brand

do u

smoke

Total

professional management technical sales financial

business

man student others

what is your ocupation

Total

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

80

Nopreference

others

555red &white

pinemorven

gold

moremarlboro

K2goldflake

goldleaf

diplomet

dunhillcapstan

benson &

hedges

which brand do u smoke

30

25

20

15

10

5

0

Co

un

t others

student

business man

financial

sales

technical

management

professional

what is your ocupation

Bar Chart

15 out of 226 respondents to No Preference having 6.6%

Consumers who are professional prefer = gold leaf 2.7%.with

a count of 6 out of 17 responded.

Consumers who belong to management prefer = Marlboro

3.1%.with a count of 7 out of 20 responded.

Consumers who belong to technical jobs prefer = gold leaf

3.5%.with a count of 8 out of 21 responded.

Consumers who belong to sales jobs prefer = Marlboro

6.2%.with a count of 14 out of 20 responded.

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

81

Consumers who belong to financial jobs prefer = Benson &

hedges2.7%.with a count of 10 out of 19 responded.

Consumers who are business men prefer = Marlboro, gold

leaf & Benson & hedges all having 2.7%.with a count of 6 out

of 30 responded.

Consumers who are students prefer = gold leaf 12.4%.with a

count of 28 out of 56 responded.

Consumers who belong to other occupation than above prefer

= gold leaf 5.8%.with a count of 13 out of 43 responded.

With level of significance of 0.001, we can not accept H1o

H1o:- consumers belonging to same occupation do not smoke

same brand of cigarette.

We will accept H1a that is

H1a:- consumers belonging to same occupation smoke same

brand of cigarette.

HYPOTHESIS 5

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

82

Case Processing Summary

226 85.9% 37 14.1% 263 100.0%which brand do u

smoke * distric

N Percent N Percent N Percent

Valid Missing Total

Cases

Consumers belonging to same LOCATIONj prefers same

brand of cigarettes.

H1o:- Consumers belonging to same LOCATION do not

prefers same brand of cigarettes.

H1a:- Consumers belonging to same LOCATION prefers

same brand of cigarettes.

To prove this hypothesis cross tab was done with help of chi

square & phi and Cramer’s

Location was considered as independent.

85.9% have responded & 14.1% have been found missing

South: - Clifton, Defense, Akhter colony & Cantt

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

83

which brand do u smoke * distric Crosstabulation

10 3 16 1 1 1 32

6.1 8.5 10.8 1.6 2.7 2.4 32.0

4.4% 1.3% 7.1% .4% .4% .4% 14.2%

3 16 4 1 4 1 29

5.5 7.7 9.8 1.4 2.4 2.2 29.0

1.3% 7.1% 1.8% .4% 1.8% .4% 12.8%

7 0 7 0 0 1 15

2.9 4.0 5.0 .7 1.3 1.1 15.0

3.1% .0% 3.1% .0% .0% .4% 6.6%

0 1 0 0 0 0 1

.2 .3 .3 .0 .1 .1 1.0

.0% .4% .0% .0% .0% .0% .4%

9 22 27 7 7 7 79

15.0 21.0 26.6 3.8 6.6 5.9 79.0

4.0% 9.7% 11.9% 3.1% 3.1% 3.1% 35.0%

0 1 1 0 0 1 3

.6 .8 1.0 .1 .3 .2 3.0

.0% .4% .4% .0% .0% .4% 1.3%

0 0 1 1 0 1 3

.6 .8 1.0 .1 .3 .2 3.0

.0% .0% .4% .4% .0% .4% 1.3%

6 4 7 1 1 1 20

3.8 5.3 6.7 1.0 1.7 1.5 20.0

2.7% 1.8% 3.1% .4% .4% .4% 8.8%

3 1 7 0 0 0 11

2.1 2.9 3.7 .5 .9 .8 11.0

1.3% .4% 3.1% .0% .0% .0% 4.9%

2 0 0 0 5 1 8

1.5 2.1 2.7 .4 .7 .6 8.0

.9% .0% .0% .0% 2.2% .4% 3.5%

1 1 0 0 0 0 2

.4 .5 .7 .1 .2 .2 2.0

.4% .4% .0% .0% .0% .0% .9%

0 5 0 0 0 0 5

1.0 1.3 1.7 .2 .4 .4 5.0

.0% 2.2% .0% .0% .0% .0% 2.2%

0 0 1 0 0 0 1

.2 .3 .3 .0 .1 .1 1.0

.0% .0% .4% .0% .0% .0% .4%

1 0 1 0 0 0 2

.4 .5 .7 .1 .2 .2 2.0

.4% .0% .4% .0% .0% .0% .9%

1 6 4 0 1 3 15

2.9 4.0 5.0 .7 1.3 1.1 15.0

.4% 2.7% 1.8% .0% .4% 1.3% 6.6%

43 60 76 11 19 17 226

43.0 60.0 76.0 11.0 19.0 17.0 226.0

19.0% 26.5% 33.6% 4.9% 8.4% 7.5% 100.0%

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

benson & hedges

capstan

dunhill

diplomet

goldleaf

goldflake

K2

marlboro

more

morven gold

pine

red & white

555

others

No preference

which

brand

do u

smoke

Total

south north east west malir central

distric

Total

North: - F.B area, Liaqatabad, Nazimabad, New Karachi, Maripur &

Azizabad,

East: - Gulshan, Gul-e-johur, P.E.C.H.S, Tariq road, K.D.A,

Jahangir road & Hill park

West: - Garden & lasbela

Malir: -Lanhdi, Malir & Korangi

Central: - Sadder, Liary & Light house,

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

84

which brand do u smoke

No preference

others555

red & white

pine

morven gold

more

marlboroK2

goldflake

goldleaf

diplomet

dunhill

capstan

benson & hedges

Cou

nt

30

20

10

0

distric

south

north

east

west

malir

central

15 out of 226 respondents to No Preference having 6.6%

Consumers who live in south district prefer = Benson &

hedges 4.4%.with a count of 10 out of 43 responded.

Consumers who live in north district prefer = gold leaf

9.7%.with a count of 20 out of 60 responded.

Consumers who live in east district prefer = gold leaf

11.9%.with a count of 27 out of 76 responded.

Consumers who live in west district prefer = gold leaf

3.1%.with a count of 7 out of 11 responded.

The Brand Preferences of Cigarette in Pakistan

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85

Consumers who live in Malir district prefer = gold leaf

3.1%.with a count of 7 out of 19 responded.

Consumers who live in central district prefer = gold leaf

3.1%.with a count of 7 out of 17 responded.

With level of significance of 0.001, we can not accept H1o

H1o:- Consumers belonging to same location do not prefers

same brand of cigarettes.

We will accept H1a that is

H1a:- Consumers belonging to same location do not prefers

same brand of cigarettes.

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

86

Case Processing Summary

226 85.9% 37 14.1% 263 100.0%

how many cigrettes

per day * what is

your ocupation

N Percent N Percent N Percent

Valid Missing Total

Cases

HYPOTHESIS 6

Consumers belonging to same occupation have same

consumption rate of cigarettes.

H1o:- Consumers belonging to same occupation do not have

same consumption rate of cigarettes.

H1a:- Consumers belonging to same occupation have same

consumption rate of cigarettes.

85.9% have responded & 14.1% have been found missing

To prove this hypothesis cross tab was done with help of chi

square & phi and Cramer’s

Occupation was considered as independent

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

87

how many cigrettes per day * what is your ocupation Crosstabulation

1 2 1 0 1 1 13 2 21

1.6 1.9 2.0 1.9 1.8 2.8 5.2 4.0 21.0

.4% .9% .4% .0% .4% .4% 5.8% .9% 9.3%

6 2 1 5 5 2 15 3 39

2.9 3.5 3.6 3.5 3.3 5.2 9.7 7.4 39.0

2.7% .9% .4% 2.2% 2.2% .9% 6.6% 1.3% 17.3%

4 4 2 5 7 5 11 8 46

3.5 4.1 4.3 4.1 3.9 6.1 11.4 8.8 46.0

1.8% 1.8% .9% 2.2% 3.1% 2.2% 4.9% 3.5% 20.4%

4 10 7 6 3 10 12 11 63

4.7 5.6 5.9 5.6 5.3 8.4 15.6 12.0 63.0

1.8% 4.4% 3.1% 2.7% 1.3% 4.4% 5.3% 4.9% 27.9%

2 2 10 4 3 12 5 19 57

4.3 5.0 5.3 5.0 4.8 7.6 14.1 10.8 57.0

.9% .9% 4.4% 1.8% 1.3% 5.3% 2.2% 8.4% 25.2%

17 20 21 20 19 30 56 43 226

17.0 20.0 21.0 20.0 19.0 30.0 56.0 43.0 226.0

7.5% 8.8% 9.3% 8.8% 8.4% 13.3% 24.8% 19.0% 100.0%

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

Count

Expected Count

% of Total

0-5

6-10

11-15

16-20

25 & above

how many

cigrettes

per day

Total

professional management technical sales financial

business

man student others

what is your ocupation

Total

how many cigrettes per day

25 & abov e16-2011-156-100-5

Co

un

t

20

10

0

what is your ocupati

professional

management

technical

sales

f inancial

business man

student

others

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

88

Consumption of professional = 6-10 cigarettes per day with

2.7 with a count of 6 out of 17 responded.

Consumption of management = 16-20 cigarettes per day with

4.4% with a count of 10 out of 20 responded.

Consumption of technical = 25 & above cigarettes per day

with 3.1% with a count of 7 out of 21 responded.

Consumption of sales = 16-20 cigarettes per day with 2.7%

with a count of 6 out of 20 responded.

Consumption of financial = 11-15 cigarettes per day with 3.1%

with a count of 7 out of 19 responded.

Consumption of business man = 25 & above cigarettes per

day with 5.3% with a count of 12 out of 30 responded.

Consumption of student = 6-10 cigarettes per day with 6.6%

with a count of 15 out of 56 responded.

Consumption of others = 25 & above cigarettes per day with

8.4% with a count of 19 out of 43 responded.

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

89

With level of significance of 0.001, we can not accept H1o

H1o:- Consumers belonging to same occupation do not have

a same consumption rate of cigarettes.

We will accept H1a that is

H1a:- Consumers belonging to same occupation have a same

consumption rate of cigarettes.

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

90

CHAPTER # 5: RESEARCH

FINDINGS

Chap # 5.1 Questionaire

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

91

Questionnaire

Please fill out this form

1. What is your gender?

Female Male

2. Your age

16 - 17 18 – 20 21 - 25 26 – 30 31 –

35

36 – 40 41 – 45 46 - 50 50 & above

3. Do you smoke

If NO so go to Q.9

Yes No Already Quitted

4. how long have you been smoking

1 year - 5 years 6 years - 10 years 11 years &

above

5. how many cigarettes per day

0 - 5 6 - 10 11 - 15 16 – 20 25 & above

6. Your occupation

kindly tick your occupation

Professional Management Technical Sales

Financial Business man Student Other

The Brand Preferences of Cigarette in Pakistan

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7. Tick the brand you smoke

kindly tick only one brand

Benson & hedges Capstan

Dunhill Diplomat

Gold leaf Gold flake

K2

More

Marlboro

Morven gold

Pine Red & white

555 Other

8. Your monthly income\ pocket money

500 - 1500 1600 – 3000 4000 - 5000

6000 - 10,000 11,000 - 20,000 21,000 & above

9. where do you live

The Brand Preferences of Cigarette in Pakistan

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Chapter # 06

Chap # 6.1 Conclusion

Chap # 6.2 Recommendations.

The Brand Preferences of Cigarette in Pakistan

Institute of Business and Technology

94

5.1 CONCLUSION

The Top Three most preferred cigarette brands

1st = Gold leaf

With 79 out 263 respondents smoke it having 35%.

2nd = Benson & hedges

With 32 out of 236 respondents smoke it having 14.2%

3rd =Capstan

With 29 out of 263 respondents smoke it having 12.8%

Target Segments of Gold leaf:-

Age: - 18-20

Income: - 11,000 – 20,000

Consumption: - 25 & above

Occupation: - students

Location: - East

Target Segment of Benson & hedges:-

Age: - 41-45

Income: - 21,000 & above

Consumption: - 16 - 20

Occupation: - Financials

Location: -East

Target Segment of Capstan:-

Age: - 21-25

Income: - 6,000 – 10,000

Consumption: - 16- 20

Occupation: - Others

Location: - North