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The consumer will try the cheaper brand, and if it is close enough in performance to the name brand, the hope is that they'll choose the lower-cost version on purpose next time

Switzerlands failure to tackle the problem has proved a major bone of contention with the European Union which has threatened to stall moves towards closer bilateral ties unless the Swiss clamp down on contraband cigarettes

Higher taxes lead to higher retail prices, which translates into higher costs for consumers including those who smoke traditional tobacco products such as cigars and du tabac pipe instead of cigarettes (which are taxed at a much higher rate)

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