Influence of Marketing on Tobacco Consumption Behavior in

Rural and Urban Areas of the Southwestern Region of Nigeria

Oluwole O. Iyiola

DISSERTATION.COM

Boca Raton

Influence of Marketing on Tobacco Consumption Behavior in Rural and Urban Areas of the Southwestern Region of Nigeria

Copyright © 2008 Oluwole O. Iyiola All rights reserved. No part of this book may be reproduced or transmitted in any form or by any

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Dissertation.com

Boca Raton, Florida USA • 2008

ISBN-10: 1-59942-698-6

ISBN-13: 978-1-59942-698-3

iv

Abstract

Tobacco industries has always shown much interest in marketing their line of

products and have been very successful in portraying smoking as a socially acceptable

behavior to billions of people throughout the world. Studies have shown in developed

nations that tobacco marketing leads to the onset of smoking among adolescents; in

Nigeria no such study has been done. The purpose of this research is to assess the

potential influence of tobacco marketing on tobacco consumption among rural and urban

residents in the southwestern region of Nigeria.

The survey was designed by the researcher in which thirty-six items, self-

administered paper instrument using a cross-sectional design was administered to six

hundred people in southwestern Nigeria. The study involved 436 males (72.7%) and 164

females (27.3%). Of these, 336 came from rural areas and 264 came from urban areas

respectively. Some 337 respondents (56.2%), indicated that they were influenced by

tobacco marketing to smoke, while 263 (43.8%) indicated that they were not influenced.

Chi square statistic was used to test the null hypotheses. The result shows a positive

significant relationship that supports the notion that tobacco marketing has a positive

influence on tobacco consumption in the study areas. This study also revealed that more

males in the urban area are being influenced more by tobacco marketing to smoke.

vi

LIST OF TABLES

Page

Table 1: Demographic and psychosocial ......................................................................104

Table 2: Cronbach�s Alpha Reliability Statistics ..........................................................107

Table 3: Cross-tabulation output for Hypothesis One ...................................................110

Table 4: Chi Square Test Result on Hypothesis One ....................................................111

Table 5: Cross-tabulation output for Hypothesis Two ..................................................112

Table 6: Chi Square Test Result on Hypothesis Two....................................................113

Table 7: Cross-tabulation output for Hypothesis Three ................................................115

Table 8: Chi Square Test Result on Hypothesis Three..................................................116

Table 9: Cross-tabulation output for Hypothesis Four ..................................................118

Table 10: Chi Square Test Result on Hypothesis Four .................................................120

Table 11: Cross-tabulation output for Hypothesis Five.................................................121

Table 12: Chi Square Test Result on Hypothesis Five ..................................................122

Table 13: Cross-tabulation output for Hypothesis Six ..................................................123

Table 14: Chi Square Test Result on Hypothesis Six....................................................125

Table 15: Cross-tabulation output for Hypothesis Seven ..............................................127

Table 16: Chi Square Test Result on Hypothesis Seven ...............................................129

Table 17: Cross-tabulation output for Hypothesis Eight ...............................................130

Table 18: Chi Square Test Result on Hypothesis Eight ................................................132

Table 19: Cross-tabulation output for Hypothesis Nine ................................................134

Table 20: Chi Square Test Result on Hypothesis Nine .................................................137

Table 21: Summary of Hypothesis Testing ..................................................................137

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Table 22: Cross-tabulation influence of advertisement on consumption .......................140

Table 23: Chi-Square output on urban and rural areas ..................................................141

Table 24: Cross-tabulation rural area only advertising and consumption ......................141

Table 25: Chi-Square rural area only advertising and consumption ..............................142

Table 26: Influence of advertising on urban area tobacco consumption ........................143

Table 27: Chi-Square urban area on advertising and consumption................................144

Table 28: Cross-tabulation of urban area, advertising and consumption .......................144

Table 29: Chi-Square of urban area, advertising and consumption ...............................146

viii

LIST OF FIGURES

Page

Figure 1 .........................................................................................................................21

Figure 2 .........................................................................................................................57

Figure 3 .........................................................................................................................75

Figure 4 .........................................................................................................................86

ix

TABLE OF CONTENTS

Page

Abstract ......................................................................................................................... iii

Copyright ......................................................................................................................vii

List of Tables.................................................................................................................vii

List of Figures ................................................................................................................ix

Table of Contents ............................................................................................................x

Dedication ....................................................................................................................xv

Acknowledgements ......................................................................................................xvi

CHAPTER ONE: THE PROBLEM.................................................................................1

Problem Background .......................................................................................................6

Purpose of Study .............................................................................................................9

The Role of Marketing .........................................................................................15

Marketing Theory.................................................................................................19

Impact of marketing tobacco in Nigeria ................................................................21

Tobacco Companies in Nigeria.............................................................................23

Marketing Communication...................................................................................25

Limitations and Delimitations........................................................................................29

Research Questions .......................................................................................................30

x

TABLE OF CONTENTS (Cont)

Page

Hypotheses Development ..............................................................................................30

Definition of Terms .......................................................................................................31

Importance of Study ......................................................................................................32

Conclusion ....................................................................................................................33

CHAPTER TWO: REVIEW OF THE LITERATURE...................................................35

Introduction...................................................................................................................35

Short history of Nigeria .................................................................................................35

The Southwestern Region of Nigeria .............................................................................37

Literature Review ..........................................................................................................37

Why people smoke ........................................................................................................41

Marketing Tobacco........................................................................................................44

Economics of Advertising..............................................................................................49

Effects of tobacco advertising ........................................................................................51

Corporate Sponsorship...................................................................................................53

Why Regulations ...........................................................................................................57

Corporate Social Responsibility.....................................................................................62

Tobacco industry activities in developing countries .......................................................67

xi

TABLE OF CONTENTS (Cont)

Page

Corruption in Nigeria.....................................................................................................69

Black Market .................................................................................................................70

Addictions .....................................................................................................................73

Theory of Choice...........................................................................................................75

Should Consumers be Socially Responsible? .................................................................77

Consumer Behavior .......................................................................................................78

Compulsive Behavior ....................................................................................................81

Smoking Reduction Efforts............................................................................................84

Nicotine Replacement Therapy (NRT)...........................................................................85

Religion and Tobacco ....................................................................................................86

Conclusion ....................................................................................................................90

CHAPTER THREE: METHODOLOGY .......................................................................91

Research Design ............................................................................................................91

Instrumentation..............................................................................................................92

Procedures.....................................................................................................................93

Data Collection..............................................................................................................94

xii

TABLE OF CONTENTS (Cont)

Page

Data Management..........................................................................................................95

Data Safety....................................................................................................................95

Data Analysis ................................................................................................................95

Hypotheses ....................................................................................................................96

Conclusion ..................................................................................................................101

CHAPTER FOUR: FINDINGS ...................................................................................102

Restatement of the Purpose.................................................................................102

A Look at the Data .............................................................................................102

Research Question .......................................................................................................106

Internal Validity Test ...................................................................................................107

External Reliability......................................................................................................107

Statistical Analysis ......................................................................................................108

Research Questions Analysis .......................................................................................139

Conclusion ..................................................................................................................145

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS.......147

Introduction.................................................................................................................147

Analysis of Findings....................................................................................................147

Conclusion ..................................................................................................................150

Study Recommendations .............................................................................................152

xiii

TABLE OF CONTENTS (Cont)

Page

Recommendations for future research..........................................................................153

List of References........................................................................................................155

Appendices..................................................................................................................187

Appendix A: Letter to Respondents ...........................................................................187

Appendix B: Questionnaire.........................................................................................188

Appendix C: Map of Nigeria......................................................................................191

Appendix D: British America Tobacco facility in Nigeria .........................................192

Appendix E: Smoking prevalence for African countries..............................................193

Appendix F: Shares of cigarette production in African Region....................................194

Appendix G: Cigarette consumption in selected African nations .................................195

Appendix H: Tobacco production line ........................................................................196

Appendix I: Sample of effective warning labels ........................................................197

Appendix J: Advertisement Samples..........................................................................198

Appendix K: British America Tobacco local brands in Nigeria ..................................201

Appendix L: Tobacco Farms in Nigeria .....................................................................202

xiv

Dedication

This is dedicated to God Almighty, who gave me the power to complete this

project. Also to my family members whose love and acceptance have helped turn this

once lifelong dream into a shared reality. To my wife of twenty-two years (and still

counting strong), thank you for the true love you have shown me. The completion of this

education landmark would not be possible without the acceptance and love of my

children � Oluseyi, Olusola, and Olajumoke. Thank you all.

xv

Acknowledgements

The researcher is greatly indebted to a number of people and would like to

acknowledge their acceptance and guidance which have helped make this research

possible. Dr. Cal Berkey, Dr. Gordana Pesakovic, and Dr. Pesi Amaria, the committee

members who supervised this project, were among the most respective and helpful that

could be found anywhere. Dr. Berkey, the committee chairperson, worked tirelessly and

certainly went over-and-above the call of duty in too many ways to describe here. My

committee members required of me my best effort, and that was why I asked them to

work with me in the first place. From the beginning, I knew that I must meet their high

standards, and I have benefited greatly from their guidance and advice.

I would also like to thank Prof. Joseph Aiyeku, Prof. Segun Oyesiku, Dr. Jerry

Kolo, Dr. Larry Holmes, Dr. Rufus Ajayi, and Dr. Debo Ogungbade for their support and

encouragement. Special thanks to my sister-in-law, Mrs. Tawa Oyinloye, and my dear

family friends, Mr. and Dr. (Mrs.) Ayo Akinlade, whose relentless efforts in getting

things accomplished in Nigeria were immeasurable. Special thanks go to my friend

Olufemi Akintunde for his encouragement and support. To Ms. Gonzalez my editor,

thank you for all your assistance in editing this document.

Now to my family, I love all of you and thank each and every one for all your

support. I need to thank my mother - Chief (Mrs.) A. O. Iyiola, my late father- Pa. J C.

Iyiola, for their support of my education efforts throughout the years. Special thanks to

my big brothers, Archdeacon Jide Iyiola for his financial support and Dr. Ayodele Iyiola

for his support.

xvi

To my wife Adebimpe Iyiola and my children Oluseyi, Olusola, and Olajumoke

Iyiola, I am eternally thankful for your support and encouragement. I also thank my

friends, Mr. and Mrs. Kehinde Somoye for all their efforts and encouragement in making

sure this project is completed. I thank my Pastor and his wife -Pastor and Pastor (Mrs.) K.

B. Sanusi, for all their prayers.

Above all, I thank God the Father, God the Son, and God the Holy Spirit for

giving me the wisdom, knowledge, and understanding to achieve my ultimate educational

goal in life and guiding me through my academic journey. PRAISE THE LORD.

1

CHAPTER ONE: THE PROBLEM

Introduction

Tobacco was first introduced to Africa in 1560 when the Portuguese and

Spanish merchants shipped the leaves to East Africa from where it spread to

Central and West Africa. By the 1650�s, European settlers were already growing

tobacco in South Africa. Tobacco leaves are primarily used in making cigars,

cigarettes, snuffs, and other products. Tobacco products contain small quantities

of nicotine in them (Mackay & Eriksen, 2002).

The tobacco industry is one of the more widespread industries globally on

earth. Cigarettes are the most widely traded product in the world, and more than a

trillion �sticks� are traded internationally each year (Schapiro, 2002). The tobacco

industry, however; is surrounded by numerous controversies, ranging from

nicotine contents in their products, to the issue of consumer addiction to smoking,

and the loss of lives attributed to smoking via different types of cancers and other

vascular diseases. According to Brown (2006),

Nicotine is highly addictive, and while no one has studied the effect

of the increases on smokers, the higher levels theoretically could

make new smokers more easily addicted as well as make it harder

for established smokers to quit. (p.1)

The tobacco industry has been able to successfully appeal to youth and

adolescents to consume their products specifically through the instrument of

marketing. Notably, British American Tobacco Company and Philip Morris were

found to have utilized a combination of marketing strategies and mass advertising

2

to infiltrate the market with their products and they were found to have provided

financing terms that were favorable for distributors in exchange for an advantage

in the market.

Smoking tobacco has been found to be the worldwide chief cause of

preventable death, per the World Health Organization (WHO). This same

organization reports a daily total of approximately 13,500 deaths stemming from

tobacco-related illness and an annual 4.9 million people dying from deaths related

to the use of tobacco products. This annual tobacco-related death rate is projected

to increase, with an estimate of around ten million people dying from tobacco-

related disease by 2030. Tobacco-related deaths include several different types of

illness, including lung disease, cancer, and cardio-vascular disease. Without any

intervention, it is anticipated that the increase in deaths from smoking and

tobacco-related illnesses will continue its path and it is projected that by the end

of the twenty-first century, there could be as many as one billion people dying

from tobacco-related illnesses globally (Peto & Lopez, 2000). About 2.43 million

deaths related to the use of tobacco occurred in developed countries in 2000 and

in the same year, there were 2.41 million tobacco-related deaths in countries

classified as �developing� (Ezzati & Lopez, 2003). The WHO reported that the

impact on developing countries of smoking could be particularly devastating

when compared to developed countries. The same organization also indicated that

the proportion of people dying of tobacco-related illnesses would increase in

developing countries as opposed to developed countries, with 70% of tobacco-

related deaths occurring in developing countries by the year 2030. In spite of the

3

seriousness and lethality of the global epidemic of tobacco use and the

consequences to global health, especially in developing nations, the majority of

research regarding tobacco products has been limited to developed countries

(WHO, 2004).

The theory of the economy relies mainly on the principle of the rational

agent. The rational expectations theory in macro-economy and the rational

consumer and game theories in micro-economy assume the common knowledge

of rationality. An economist�s ability to model human behavior hangs on the

general assumption that economic agents will behave in a predictable way. There

is abundance evidence that shows that consumer decisions about tobacco

consumption obey the law of demand, whereby, when prices of tobacco products

go up, the amount consumed falls (Ross & Chaloupka, 2002). The general

assumption is that humans will act in their best interests. Despite this assumption,

consumers under observation are making choices that do not promote their

welfare or best interest.

The consumption of cigarettes, alcohol, and drugs will have adverse

effects on human life. In addition, the consumption of these products could lead to

addiction as once the product is consumed on a regular basis, it will become very

hard to stop consuming the product as the side effects build up. Ironically, the side

effects of these products are common knowledge. In view of this, consumer

myopic theory is proposed, (i.e. consumers are blind to the future). This analysis

further provides evidence on a theory that examines addiction and equally

maintaining consumer rationality. Consumers, when making a choice, consider all

4

available information in order to make a choice that they believe will maximize

utility. This theory is called rational addiction and was initially proposed by

Stigler and Backer (1977). A paper presented by Becker and Murphy (1988),

revealing the dynamic optimization model followed this line of thinking. The first

empirical work providing details on derived demand equations for cigarette

consumption was proposed (Chaloupka, 1991). This dissertation focuses on the

influence of marketing on tobacco consumption behavior in the southwestern

region of Nigeria, by comparing consumption rates in urban and rural areas.

According to the U.S. Department of Health and Human Services

(USDHHS), there are now more than 70,000 scientific articles that link smoking

with a pervasive range of health problems (USDHHS, 1994). Studies performed

in China recently relating to epidemiological issues summarize the magnitude of

the tobacco epidemic (Zhang, Wang, Zhao, & Vartiainen, 2000; Richard,

Zhengming, & Jillia, 1996; & Lam, He, Li, Li, He, & Liang, 1997). The

consumption of tobacco products, including cigarettes, has been found to be the

world�s primary preventable cause of death, and it is estimated that globally 5

million deaths occurred in 2003, with the majority of these deaths occurring in

poor countries and with poor populations (Ezzati & Lopez, 2000). As of today,

there are approximately 1.3 billion smokers worldwide and by 2025 it is estimated

that there will be 1.7 billion smokers if the current trend continues (Guindon &

Boisclair, 2003). Despite the increasing evidence that tobacco use is associated

with various diseases, many governments still fail to act because of fears that

tobacco control interventions might hurt their country�s economic development

5

In recent years, cigarette makers are faced with intense criticism and

pressure as industry documents began to emerge indicating that the companies

knew more about the hazards and addictiveness of smoking than they had

revealed to the public. Some of these documents were used in the recent smokers�

lawsuit in Florida, in which a record $145 billion in punitive damages was

awarded against the industry. Much less information has to come to light about

the industry�s activities overseas.

Efforts by the WHO to combat smoking around the globe are being

undermined by the tobacco industry that has been waging a sophisticated, secret

campaign for years against the claims of the agency. Kaufman (2000) indicated

that other United Nations-affiliated agencies are being pit against WHO to

discredit the world health agency and have its budgets cut, and also by supposedly

hiring an independent expert to grossly distort findings from research that had

previously been conducted into the effects of tobacco. Kaufman (2000), gives the

example that in 1993 WHO learned that its funding from the Japanese fund would

be cut to $300,000 from its original $600,000 for the 1994-1995 year and then, in

1995, the fund was completely eliminated and the money was shifted to the

leprosy program run by the WHO.

A study by the World Bank indicated that with 11% of the world�s

population, Africa accounted for 2% of the world�s total cigarette consumption.

Average consumption of cigarettes per person 15 years and older in 1999 was

only 16 packs. Despite the many countries that make up the continent and the

large population encompassing these countries, little is known about this region in

6

terms of tobacco usage. Smoking prevalence is not very different among African

countries, ranging from 9% in Nigeria to 49% in Kenya. Overall, about 21% of

adult populations in the region are smokers, and the average annual consumption

for these smokers was 16 packs in 1999 (World Bank, 2001).

Problem Background

Tobacco companies were found to be very successful in promotion and

marketing strategies in developing countries. Cigarettes are the one most highly

promoted and advertised product in America (Tye, Warner, & Glantz, 1987).

Between 1975 and 1983, the total spent on cigarette promotion increased from

$490 million to $1.9 billion (FTC, 1986). Major health organizations have

proposed the total elimination of advertising and promotion of tobacco products.

They argue that this would decrease consumption, thereby reducing tobacco-

induced disease and death. Studies showed that the majority of smokers begin at a

young age, with around 60 percent starting before they turned 13 years old

(Johnston, O'Malley, & Bachman, 1995), and a total of 90 percent starting before

the age of 20 (CDC, PHS, 1986). Studies have further shown that advertising

increases the rate of tobacco consumption (Borden, 1942; Telser, 1962; Simon,

1968; Peles, 1971).

Statistics such as those noted above become even more sobering when one

sees that in order to simply maintain the size of the current smoking population,

there would need to be more than 5,000 young people, including children and

teenagers) to start smoking each day. The market segment of middle-aged male

smokers has been shrinking as health-conscious adults, particularly those with

7

higher education levels, have quit smoking in large numbers. The market

segments of young females and some minorities, on the other hand, have been

recognized as growth sectors by the industry, and account for a large proportion

of advertising and promotion expenses (Sobczynski, 1983; Englander, 1986).

Advertising and promotional expenditures could influence individual

tobacco company profits by redistributing market share or by preventing the

erosion of market share to competitors. They could also increase total industry

sales, thereby increasing the potential profitability of all tobacco companies

regardless of their market share positions. Industry sales could increase by the

attraction of new smokers, the retention of smokers who might otherwise quit, or

by increasing the daily consumption by existing smokers. It is largely accepted by

empirical evidence, including econometric studies and examples of promotional

expenditures being serially correlated with changed demand within the target

market, that the total consumption of tobacco products is increased by cigarette

and tobacco product promotion and advertising (Cox, 1984; Warner, Ernster,

Holbrook, Lewit, Pertschuk, Steinfeld, et al., 1986).

These studies do not consider non-advertising promotional activities like

event sponsorship and product �give-aways�, the use of which has been

increasing at a much faster rate than advertising in recent years. Nor do they

consider the constantly changing advertising themes used by cigarette advertisers

as they strive to reposition their brands to tap new market segments. If, despite

these methodological difficulties, econometric studies detected a measurable

influence of advertising on increased demand, it can be inferred that there is a

8

certain degree of advertising elasticity in the demand for cigarettes, and that the

more advertising there is, the more cigarettes will be smoked. One of the major

reasons given for ending tobacco advertising and promotion is that they increase

tobacco use by young people. Many of the lifestyles glamorized in cigarette

advertising today, like motorcycle and automobile racing, surfers and beach

parties, as well as hang-gliders and mountain climbers, are those most aspired to

by adolescents. The control of tobacco promotion and advertising is a pivotal

policy area in the effort to prevent adolescent smoking (Biener & Siegel, 2001).

According to Pierce, Choi, Gilpin, Farkas, and Berry (1998), it has been

found that adolescents classified as �non smokers� who are exposed to cigarette

or tobacco product advertisements to the point that they can identify specific

advertisement are the most likely to become smokers. Exposure to tobacco

promotional campaigns and ownership of promotional items such as clothing with

cigarette brand logos are associated with greater susceptibility to and actual use of

tobacco (Altman, Levine, Coeytano, Slade, & Jaffe, 1996). As a result of these

findings and other evidence linking tobacco marketing activities to youth smoking

initiation, there has been widespread support among public health advocates for

legislated controls on tobacco advertising and promotion (Lu, Mackay, Niu, &

Peto, 2000). Therefore, environmental policy pertaining to controls on tobacco

marketing in the remaining sectors of the world is in significant transition

(Braveman & Aaro, 2004).

9

According to one researcher,

The battle over the advertising and marketing of tobacco products

ranks as one of the main fronts in the war between the tobacco

industry and the public health community over the last 20 years,

around the world. (Connolly, 2002, p. 64)

Depending on the organization, perceptions of the marketing functions

may differ. Fast moving consumer goods (FMCG) companies, dependent on

building relationships with consumers and securing their loyalty, tend to place

great value and expectation on the marketing team and brand building and

innovation are high on the Chief Executive Officer�s (CEO) agenda. Since

marketing is an engine of growth, it must prioritize innovation. Innovation, as an

extension of marketing, is necessary to create organic growth and must be

inextricably linked to brand strategies. This requires a hard-nosed, venture

capitalist perspective, where consumers pay as much attention to the economics of

the business.

The extent to which tobacco advertising influences tobacco use or

consumption has been studied in industrialized nations, including the United

States. There are very limited studies on the same issue; however, in developing

nations, such as Nigeria.

Purpose of the Study

The use of tobacco products and in particular, cigarette smoking (CS)

remains a significant health risk factor worldwide, contributing to the death and

illnesses rates of cardiovascular and respiratory systems worldwide (Ambrose, &