What relevance does innovation have in the transition of consumers from conventional tobacco to heated tobacco and how does this impact consumption patterns?

: IQOS case study

Abstract

The tobacco industry is known for its restrictive regulations, with innovation having no role in consumer engagement with the brands. However, everything changed with the introduction of heated tobacco products, like IQOS, which marked a shift in the industry as we previously knew it. The focus of this thesis was to see whether different forms of innovation impact the transition from conventional to heated tobacco and whether this transition affects patterns of consumption. A mixed- methods approach was employed, in which the qualitative phase involved 38 interviews with non- smokers, conventional and heated tobacco users and the quantitative phase involved an online survey with 104 valid responses, analysed using descriptive statistics and logistic regression in R. Results show that in product innovation, specifically technological features and device design, is the strongest predictor of transition. However, service and sustainable innovation showed a weaker prediction in the transition. Furthermore, findings indicate that the transition to heated tobacco increased tobacco use, which can raise questions about the idea that this type o tobacco is less harmful. This thesis contributes to the literature, because it explores how innovation can have an impact in consumer engagement and provides insights into how innovating and creating new products influences consumer behaviour and shape patterns of use.

Date of Award	3 Jul 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Miguel Torres Tavares (Supervisor)