Research Paper

PART 1

1.1 Background to the Research

British American Tobacco, Philip Morris and Japan tobacco are one of the top tobacco companies in the world. According to BAT annual report (2006), British American Tobacco is the clear market leader among the companies on Bursa Saham in Malaysia. Harry A Lando and others (2010) indicated that tobacco industry always recognized those who quit or die from tobacco related diseases must be replaced by new smokers. Due to the population increased in Malaysia, the tobacco consumption had increased dramatically in Malaysia (New 2003).

A research was conducted by National Health Morbidity (1999), the smoking rate of Malaysian youth aged 15 and above had significantly increased by 18.2 percent. New (2003) has also proven that among the student smokers, the average consumption is 14 cigarettes per day. Even though smoking is detrimental to health and will lead to chronic disease and death (Constaza Pardo, Marion Pineros , Nathan r. Jones and Charles W. Warren 2010), the rate of smoking by students is still increasing from day to day. There must be some reasons that Malaysian students are still smoking. Therefore, this research is to figure out what factors has contributed to this critical issue.

1.4 Identification of Research Gap and Contribution to Knowledge

There are different perspectives by experts in tobacco industry in all around the world. One of the contradictions in opinion can be found is between Chaplouka(1991) and EBSCO(2001). According to Chaplouka(1991), it is reported that youth are relatively insensitive to price changes. However, in EBSCO(2001) has indicated that when price of cigarettes increases, there will be decline in smoking among youths. Therefore, this research is done to determine whether price changes will significant influence the consumption level of smoking in order to clear off the contradiction.

From the outcome of the survey, it is able to contribute useful information to outside...