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Marketing Research Report No. 189 ED STATES DEPARTMENT OF AGRICULTURE Agricultural Marketing Service Washington, D. C. 1,53-9 C~ ~~ RI

in the United States in- Relation to Income Marketing Research Report No.189 July 1957 UNITED STATES DEPARTMENT OF AGRICULTURE Agricultural Marketing Service Washington, D. C. TOBACCO /SMOKING 61 4ad CTR HN t~~03~=: 62

LIST OF CHARTS Fig-ire 1. Male cigarette smokers, by incoce class ...................... 2. Female cigarette smokers, by income class .................... Cigar smokers, by income class ................................ k. Pipe smokers, by inconle class ................................. 5. Cigarette smokers, males (form of smoking) .................... 4 5 17 6. Cigar smokers (forza of smoking) ............................... 19 21 to age and income ........................................... 27 9. Proportion of males smoking cigarettes regularly in relation to incoae, by age ........................................... 2S 7. Pipe smokers (form of smoking) ................................ 8. Proportion of males smoking cigarettes regularly in relation 10. Proportion of c.ales smoking cigars regjlarly in relation to age and income .............................................. 37 11. Proport :on of males s.:.okir.g pipes regularly in relation to e.ge and 'nco©e .............................................. L.2 12. Cigarettes smoked daily per rale.regular snoker, by income class ....................................................... 6C 13. Ciga^s smoked da:ly per regllar s--oker, by inc=e class ....... 75 14. Pipefuls smoked daily per regular smoker, by income class ..... 81 15. Cigarette cor.sumption by males who smoke regularly in relat:cn to income and age ........................................... 88 16. United States smokers, February 1955 ............... .......... 93 1i. Regions of the United States ................................... 202 iv CTR:/ 1543 c T R' N H

P.Ttff'ACE This report is a direct outgrowth of a survey r..ade early in 1955 by the Burea.u of the Census for the United States Public Health Service. The results of the survey were pub- lished in late 1956 in a monograph, Tobacco Smokin6 Patterns in the United States. The study reported here supplements the monograph by providing information on smoking character- istics in relation to income. in ad.dition, other i=portant aspects have been included. These are: (1) A discussion of different forms of smoking; (2) estimates of the smoking population; (3) more detailed information on rates of smok- ing; and (4) reconciliation of survey data with nationa1 aggregate consuerption. Throughout our study, eWphasis was placed on the effect- of income on smoking characteristics. Whereas the Fsblic Health Service monograph raay be used to answer such a question as "Hov does aae affect a person's smoking habits?," our report gives the answer to such a question as "How do age and inco¢se affect a person's s=oki :g habits?" Thn nonograph shoxs '.he effect of rea:c:.al. lcca- tion, urban-rural,residence, and occupation on sWokina habits. But our study, as reported here, considers the effect of each in conj unction vith inccne. Ile arz'_•rze ;,he effect of these factors on saokiag status (regu?a: or occasional), the product siwked, and rates of sW;.kina. Concentration of analysis is on current smokers--both regs- lar smokers and occasional sno'r.e_ s. No arelysis is =--de of nonsnloker s--either those who have never saoked or tyose who formerly smoked but who, at the tine of the suz^vey, had discontinued s::oking. Readers who are interested in such information tirill find the data in appendix tables o1-G0. Most of the statistical calcuiations were made by „•ulia Ibris.h or under the supervision of Nartha N. Condee. The suggestions of Richard J. Foote were helpful in preparing this material for publication. ii GTR}I 1541 ~` ~~~ ~d~~~ C~~'~ ~ ~~~ ~

COKM%TS pa -: List of charts ........................................................ ........ iv List of text tables ............................................................. v $ighlights ....................................................:.................. . Source of data .................................................................. 9 Analysis and presentation of data ............................................... 11 Torms of smok.ing ................................................................ 13 Principal forms of stsoking .................................................... 14 Classification of male smokers,by form of smoking ............................ 15 product saoked by regul.ar aad occuional smkers .............................. 22 3aoiciag status (by incoae, s.ge, region, residence, occupation, iadustry) ........ 25 Regular smokers ............................................................... 25 Occasional smokers ............................................................ :+c Rates of s:moking (by inccne, age, region, residence, occ::pation) ................. 59 Cigarettes, male smokers ...................................................... 59 Cignrettes, feina.le smokers .................................................... 68 Cigars ............................................. .......................... 7: Pipes ......................................... ............................... Pp Income elasticity of dcsad for cigs.rettes ...................................... 36 Reconciliation of cocputed consumption vith Intersa: Revenue Service dats ....... 91 Literatu.re cited ................................................................ c9 List of appendix tables ........................................................ 1C1 Appendix A. Tables of survey data ................................................1 07 Appendix B. Tables s::.oving per cent.e.ge d+str itutioc of s=ke: s by r ete of 5=ck=nE and kind of smoker .............................................................10~ A,pendix C. Statistical analyses ................................................17; Appendix D. Methodology .........................................................170 Evs.luation of survey data ..................................................... 190 Reliabillty of data shovn ..................................................... 1gL Ccatparison of income sample aadfull saaple ...................................1y5 Definitions ...................................................................195 Adjtutments in data ...........................................................205 Ccaputational notes .......................................................... 210 lii M:/ 1542 e .. Wc ® 1 i <. C `[p~~~ ~~~ '.~'.~ ~ °~ ~ ~-

LIST CF :: . ::3L?.S - Cc,~1: U-ct Table Page 54. Average daily consumption of male regular cig over, by residence and incoPe, February 195 ar smoke 5 ....... rs, 18 years ar.d ...................... 79 55. Percentage distribution of male regular pipe over, by rate of sx,king, by age and income smokers, , Februa 18 years and ry 1955 ............... 82 56. Percentage distribution of male regular and o 18 yes.rs and over, by age and income, Febru ccasiona ary 1955 l pipe smokers, ....................... 62 57. Average daily conaumption of male regular pip over, by age and income, Febnury 1955 ..... e smoker ........ s, 18 years and ....................... 83 58. Average daily consumption (piperuls) by regul smokers, 18 years and over, by age and by i ar pipe- ncoce, F only and cocbination ebruary 1955 ........... 63 59• Average daily constr--ption of,oale regular pip and over, by region and income, February 19 e smoker 55 ...... s, 18 years ....................... 8» 60. Average daily consucption of male regular pip and over, by residence and incoce, February e smoker 1955 ... s, 18 years ...................... 85 viii 1547 ~ .1 ` :,:G ~I

!Ceeping in mind the duplication, vhich c.ekes the percenteses srovn belo'.+ nonarlditive, these broad snoKing groups ra.-u as follovs, as =easured by number of smokers: Snoking category Percentage of cale population, 18 years and over 1/ Percent Cigarettes regularly 55 Cigars occasionally 16 Pipe occasionally 10 Pipe regularly 8 ,Cigars regularly 6 Cigarettes occasionally 4 ~ Civilian, noninstitutionel Classification of Ma1e Scokers, By Form of Snoking The estimated nuyber s of snokers vithin each of the 26 mutt:ally exclu- sive classifications may be grouped as fo:'_oWs:~/ Males saoking regularly only: 1. Cigarettes only 17.1 2. Cigars only 1.2 3. Pipes only 1.1 4. Cigarettes-cigars .2 5. Cigarettes-pipes .2 6. Cigars-pipes .3 7. Cigarettes-cigars-pipes _.3 Subtotal ?0.~4 V These estimates have been derived frc,a survey self-response bias as explained on pp.206-207. CrR;e Civilian noni^_stitutionB.'_ ~'iLlions data adjusted for the non- 1562 M 'A ~y ~~~R VIN 003 ~zB4

- 10 - in the Public Health Service monograph, Tobacco Smoking Patterns :r. the United States (7) 1/. The survey snaple was the national saarple used by :he Bureau of ` the Census in its Current Population Survey, cond::cted each month to pro- vide information on esploynent and related data. This sample, representat:ve of the noninstitutional*civilian population,• consisted of more than 40;00G per sons in 320 sample areas, covering about 450 counties and independent cities scattered throughout all resions of the country. A special schedule was included in the February 1955 survey to obtain the desired smokinZ informa- tion. V Additional data are drawn from the consumer income supplement to the April 1955 Current Population Survey (14). In this survey the Bureau of the Census gathered income data from about three-fourths of the households in the sazcple, in connec*.ion with estimates of consumer income in 1954. Part of the national sample is rotated froa month to month so that the February and April samples in their entirety did not include the same households. About half of the February and April samples reprtsented identical households. This made possible the cross-classification of smolcina information w:th the income status of individuals. The cross-classification matched smoking and income information for individuals 18 years and over. The Bureau of the Census publication on 1954 consumer income includes indlviduals 14 years and over. The subsample providing both smoking and income data js hereinafter referred to as the "income sample," to distinguish it from the larger saap'_e used in the February 1955 =oking survey, hereinafter referred to as the "full sample." V Throughout this report, underlined numbers in parentheses refer to Literature Cited, p. 99. V See Tobacco Smoking Patterns in the United States (7, pp. 7, 53-55) for a fluther description of the sample, the questionnaire used in the survey, and enumerator's instructions. PA 1557 ~ ~ T~ N~`~~ ~'~ ~.~ ~ z '~ ~. ~.~

FEMALE CIGARETTE SMOKERS, BY INCOME CLASS % . 60 Regular ~ Occasional 40 2 0 ~~ I Y.. IIl ~. r. O Under 1 1 to 2 2 to 3 3 to 4 4+ NO MONEY ALL INCOME ' 1954 PERSONAL INCOME ( $ THOUS. ) (IY/L/AM NOM/NJTI7YTIOMAL IEMALEI. 14 /EARS JMD OVER. DATA SASEO ON IE/RUARY 1171 JVRvEY. U.S.OEVARTWENT Of AGRKULTURE MEG..tH.57(S) AGRICULTURAL VARKETIM(. SERViCE Figure 2.--?Sare thaa a fourth of the feralcs smoke cigs.rettes regL:larly (every day), a:d another 4 perceat smoke ttem oecasiooally (aot every day). Less thaa a fifth of the vmea vhose perso:a: Sacomee are less than $1,000 a year smoke reo,l•-1y, but the Y.oportion Sncreasea to about & third for vomen receiving incooes of $3,000 or mxe. About a fo-.Mh of the voc.ea vho receive ao personal income (largely hooe-makers) smoke cigarettes restairly. The higLest Zroporacrs of occaiiocal ciaarette tnokers, 7 percent, are found aaon g voclen ia the $2,000 to $4,000 bracket. Roughly 1 out of 6 males, 18 years and over, is a pipe saoker, regular or occasional. In pipe smoking, occasional smokers outnunber regular sWokers, but not nearly as imica as they do in cigar eaoking. Occasional pipe Esnokera myy account for a tenth of the dcmestic market for pipe tobacco. Only about a fifth of all pipe smokers (regular and occasional) amoke pipes exclusively. Of the other four-fifths, ha.1S combine regular cigarette smoki.n.g vith pipe smaking. G/ " 15JU ;; cu fs R' NH D ~.~ 3; c~:`~2 cT'

-8- Income appears to have a greater effect on rates of smoking than on the percentage of regular smokers, although differences associated with age and other population characteristics also were noted. The majority of all regular cigarette smokers amoke from 10 to 20 cigarettes daily, gener- ally regardless of age or income level. Fbough men exceed this range to bring the overall daily average to 21-22 cigarettes for male smokers. The daily average for women, based on survey responses, was estimated at about 14 cigarettes, but might actually be closer to 16. Statistical analysis indicates that daily coasumption of male regu- lar smokers of cigarettes rises with income, after allowing for the effect of age, but the rate of increase is greatest among those with lover incomes. In relatton to age, consumption increases up to about 35, rema.ina relatively stable through 45, and then declines after adjusting for the effect of in- ccme. Survey data for female regular smokers did not lend themselves to similar analysis of income effects, although the effect of age suggested a pattern similar to that of men smokers. . Percentage changes in cigarette consumption accompanying given per- centage changes in income were found to be smaLl. The income elasticity of demand for cigarettes by all regular smokers (male and female) is indicated by cross-section analysis to be 0.12. Such a measure implies that, on the average, a 10 percent rise in income is accc=panied by increased c:ga:ette consumption of a little more than 1 percent. This income elasticity of demand for cigarettes is considerably lower than those obtained by dther investigators, principally from time-series analysis. Income elasticities may meaaure changes in total consumption ove.r a period of time, or differ- ences between consumption of different individuals or families at the sa^e time (cross-section analysis). We have no reason to expect that income elasticities obtained from alteraative types of data will be similar, since, in effect, they measure different types of responses. 0 For both men and women cigarette smokers, consumption rates in the Northeast exceed those in other regions; those of smokers who live on fa_:_s are lighter than those of nontarm residents. Among men cigarette sWokers, smoking rates vary little between urban and rural males with 1.ccWes of less than $3,000. Women smokers who are hcr-emakers without personal inccWe of their own average about as many cigarettes daily as those eWployed a:.d receivL-ig wages or other earnings. •j ~ ~i ~ U' { R h ~ • \ { Sd) 0 1:3 D