THE INFLUENCE OF PACKAGING, ADDED TAX, AND MEDIA ADVERTISEMENT TOWARDS SMOKERS CIGARETTE PURCHASE DECISION (A CASE STUDY IN JABODETABEK AREA)

Abstract

Indonesia is one of the ASEAN countries with high population and economic growth. As such it is inevitable for its people to become high consumer of cigarette products, with cigarette as one of Indonesia commodity of export, cigarette has become a daily need for the people of Indonesia. The government of Indonesia actively pursue the laws such as adding Goods and Service Tax, limitation of advertisement and, Health Warning Labels on packages, even though all of the government effort seems ineffective. In this research, the researcher will be analyzing the effect of packaging, added tax, and media advertisement toward smokers’ cigarette purchase decision by gathering data’s from questionnaire or even previous research on the problems faced by smokers. This research is a quantitative research, in this research, the researcher accumulates all the statistical data from 185 respondents of verified sources to be able to perform this research on the effect of packaging, added tax and media advertisement faced by smokers. with this research the researcher concluded that from the test the packaging and media advertisement variables have an effect towards smokers’ cigarette purchase decision, while the added tax variable does not have an effect. But, when the variables tested altogether the packaging, added tax, and media advertisement variables have a significant effect towards smokers’ cigarette Purchase decision.