Determinant Factors and Policy of Promotion Mix Innovation for Cigarette Products in Indonesia

Abstract

This research was intended to identify and analyze the factors influencing cigarette consumption, and the impacts of regulations on cigarette promotion by Indonesian government on cigarette consumption as well as to identify and analyze the effectiveness of innovation policy of cigarette promotion that will be developed. The research used quantitative method, and the analysis tool used was Structural Equation Model (SEM). The research was conducted in several cities in Indonesia such as Jakarta, Sarabaya, Malang and Kudus involving 300 respondents. The research results showed that cigarette consumption was influenced by promotion mix; that is, sales promotion, sales people, public relation, direct marketing except advertising. The policies of cigarette promotion innovation to be developed would be effective.

Keywords: innovation, promotional mix, cigarette products, Indonesian cigarette industry