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Tobacco companies may also pursue both strategies in the same country, increasing the price gap between premium and budget products Introducing new brands , variants, segments or products, like cheaper brands to keep prices low Using price discrimination and promotions such as selling the same product at different prices to different customers Price smoothing: Introducing the tax increase gradually, over time, so consumers are less likely to notice and decide to cut down or quit Adopt shrinkflation: Disguising the price increase by reducing the number of cigarettes in a pack or reducing their size Changing product attributes or production processes such as introducing cigarette-like cigarillos if they are taxed at a lower rate Tobacco taxes are critical to reducing the burden of tobacco use but only work if consumers feel the impact in the form of higher prices

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Retrieved February 1, 2021

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