CHAPTER I INTRODUCTION. smoking causes cancer, heart related diseases, impotent, and serious damage to unborn

Transcription

1 CHAPTER I INTRODUCTION 1.1 Background Smoking has always been a hazardous habit, as it is stated in the cigarette packages, smoking causes cancer, heart related diseases, impotent, and serious damage to unborn fetuses. Smokers everywhere have always been advised to proceed with quitting the habit and the younger population is encouraged to never pick up the habit. Cigarette consumption in Indonesia is very concerning, according to Hodal (2012, sec 2.4). In Indonesia there is no minimum age limit on smoking, which is why videos of smoking baby Ardi Rizal exist on Youtube, and also 2% of Indonesian population started smoking by the age of four, 70% of men aged twenty and over smoke and 5% of the female population smoke, the average starting age of smoking is 19. And the death toll cause by cigarette consumption is astonishing, every year 425,000 deaths in Indonesia are caused by cigarette consumption. Cigarette advertising also dominates Indonesia a picture of young fit and healthy is portrayed living their dreams in cigarette advertising everywhere in Indonesia from television to billboard advertising. And the promotional effort does not stop there, cigarette promotion even reach out to school sports and other events. 1

2 2 What makes smoking even more dangerous is the fact that the habit of cigarette smoking cannot be undone so easily. The reason for this matter is obviously because the fact that cigarette causes addiction in its users, this addiction leads smokers who wishes to quit, returns to picking up the unhealthy lifestyle. In an article in detiknews it is stated that, based on the survey conducted by the Ahli Kesehatan Masyarakat Indonesia in 2007, as many as 1,127 people died to a smoking related disease, smoking related death number in Indonesia ranked third after China and India. And out of the 1,127 people, 67 percent were male (Kurniawan, 2009, sec. 1.3). This survey is still accurate even two years later, as it is stated in the article of Padang Today that mentioned that there is an increasing number of smokers in young adolescents as much as 19 percent compared to And it appears that there is also an increasing number of female smoker, four percent of the total smoker population are female. (Hayati, 2011, sec. 1.3). The number of smoker population in Indonesia is so staggering, an article in Tweet News says that there are more smoking Indonesian than the entire population of people in Malaysia. It is estimated that there are 65 million smoking Indonesian and there are about 27 million Malaysian. This is because an increase of smokers that kept increasing since In 1995 there are 53 percent of male smokers and 1.7 percent of female smokers out of the total population. In 2010 male smoker population are 66 percent of the total population and female 4.2 percent. (Ahsan, 2012, sec. 1. 3). But the addiction causing feature in cigarette is not the only factor that dismisses smokers will to quit smoking and encourages young adults to pick up the lifestyle, it is because cigarette advertising is everywhere, and it is also important to note that cigarette advertising can adapt to government regulations.

3 3 Governments try to solve social problems through public policy initiatives that advocate one behavior over another. One such social problem is smoking, which is annually responsible for approximately 440,000 deaths in the United States (Centers for Disease Control and Prevention in Shiu, 2009), and 4.8 million deaths worldwide as mentioned in (Ezzati and Lopez in Shiu, 2009). The number above is most likely inaccurate, considering the number of smokers in third world countries whose majority does not have access to health insurance or even health care that during death probably does not have an autopsy performed and the cause of death is not recorded therefore not making it into the data, with that in mind, the numbers could easily be more than 5 millions. Anti consumption is in essence against consumption and can manifest through many different actions that are normally directed at products or producers. Reasons such as profit, politics, morals and environmental sustainability may motivate anti-consumption activities as mentioned by Craig-Lees In shiu, In essence, the message that Craig- Lees is trying to deliver is that in order to provoke anti consumption behavior in a cigarette consumer. Actions need to be taken. And this action should be directed toward the products or the producers. Demarketing which is the scope of the study has been defined by Kotler and Levy in Shiu, 2009 as that aspect of marketing that deals with discouraging customers in general or a certain class of customers in particular on either a temporary or permanent basis. Kotler and Levy in Shiu, 2009 stated the original purpose of demarketing were to selectively demarket their products to deal with temporary shortage and excess demand as well as to reduce demand from undesirable segments. Shiu, Hassan and Walsh, 2009 explains that the focus is thus on how firms choose the optimal marketing mix (product,

4 4 price, place, promotion) to manage their long term relationship with the customer. Thus to proceed with Demarketing in order to make consumers cut ties with smoking and cigarette company, the marketing mix must be utilized unconventionally, actions such as providing alternative and surrogate products to cigarette, increase cigarette prices through government taxes, smoking place restriction and marketing campaign against smoking also restrict cigarette promotion through government policies. Product is framed as product replacement and displacement. In essence this demarketing variable aims to assist smokers in quiting by offering free or low-cost replacement products (e.g., nicotine replacement therapies) as well as support services (e.g., telephone quit line and other information services) (Shiu et al, 2009). It is expected through product replacement strategy, there will be a positive reaction towards the initiation to quit smoking by the customers. The demarketing variable price is very much straight forward, mainly delivered via increased taxation and hence sales price (Shiu et al. 2009) similar to most products an increase in price will translate to a decrease in demand and thus consumption. The next step to reduce smokers and change customers perspective towards smoking and initating them to quit smoking is through placement strategies. Prohibition of place of consumption through selective smoking bans such as on public transport, and broader clean-air smoking bans in public places (Shiu et al. 2009). Anti-smoking advertising and warnings highlight the health harms associated with smoking are likely to negatively affect consumers smoking-related attitudes and opinions (Shiu et al, 2009). By giving bad reputation to the advertising of cigarettes (e.g.

5 5 visual warnings of shocking images of cancer patient) would suport the customers decision to quit smoking. 1.2 Problem statement Understanding what demarketing is, and how does demarketing uses the marketing mix to discourage smoking behavior with the help of Government policy. The question will be, how the demarketing marketing mix changes the customer s attitude towards the industry, intention to quit smoking, and smoking itself, the effectiveness of the demarketing would be measured throughout all of the demarketing mix elements, how product, price, place, and promotion elaboration affects the consumers attitude toward industry, attitude toward smoking, and finally their intention to quit smoking. 1.3 Research Question Demarketing utilizes the 4P s of the marketing mix to encourage deconsumption, the hypotheses were wether a shift in the 4P s of the marketing (Product, Price, Place, Promotion), would affect consumers attitude towards the industry, smoking and intention to quit. And if there is a change in attitude towards industry and smoking, would these translate into a possitive attitude towards the intention to quit. RQ1: How does the 4Ps of demarketing affects consumers attitude towards the tobacco industry, smoking, and intention to quit smoking? RQ2: Does attitude towards tobacco industry negatively affects consumer s attitude towards intention to quit smoking?

6 6 RQ3: Does attitude toward smoking negatively affects consumer s attitude towards intention to quit smoking? 1.4 Scope and limitation The research aims to study the extent of sucessfulnes of the demarketing throughout government policies and the marketing mix, the research questions will be distributed to smokers that varies demographic, geographic and psychographically, in hope to gain unbiased result. However the demographic will be limited throughout Jakarta population adjusted to suit the researcher convenience. 1.5 Aims and Benefits By concluding this research, the author aims to achieve the following objectives: 1. To figure out the if there are a relationship between government policies on cigarett bans and number of smokers. 2. To figure out the role of demarketing marketing mix in discouraging smoking behavior. The followings are the benefits of this research: 1. Provide fact to prevent young adults from smoking and encourage smokers to quit smoking 2. Utilizing the marketing mix to do the oposite of what it is commonly used for.

7 7 1.6 Structures To give a better and clear understanding for the author and the examiner, this research will consist of five chapters. Each chapter will cover different things regarding the research. A brief explanation will be discussed below. CHAPTER 1: INTRODUCTION This chapter provide research and topics regarding the effects of demarketing, government policies, bans, and demarketing marketing mix and how it works is portrayed in detail individually (product,price, place, promotion). Also explains the aims and benefits of. CHAPTER 2 THEORETICAL FOUNDATION The second chapter of the research consist academic literatures, theoretical foundation, and previous findings related to the research. CHAPTER 3: RESEARCH METHODOLOGY The third chapter of this research includes research methodology, providing details of the research objective, research questions, research design, data collection method, hypotheses, and data analysis method that will be performed for this research.

8 8 CHAPTER 4: RESULT AND ANALYSIS This chapter will discuss the result and analysis of the findings that is compiled from the collected data and findings through the methodology explained on chapter three. CHAPTER 5: CONCLUSION AND RECOMENDATION The chapter five of the result will be a summarization of the research and a conclusion that is detract from the research, also summary of the research findings, recommendation, and suggestions for future studies.