Browse > Article
http://dx.doi.org/10.5762/KAIS.2014.15.1.72

An Analysis of Coffee Demand System in Korea using AIDS  

Li, Ming-Huan (Department of Economics Hoseo University)
Jung, Kun-Oh (Department of Economics Hoseo University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.15, no.1, 2014 , pp. 72-80 More about this Journal
Abstract
This study is to estimate a demand of coffee in Korea. And based on assumed data, this study is to investigate price elasticity, income elasticity and cross-price elasticity of coffee demand. The data used in this study is the household income and expenditure survey micro data (2003~2012) provided by the National Statistical Office. And LA/AIDS model and SUR method were utilized in order to forecast coffee demand. As a result, price elasticity and income elasticity are found to be correspond with economic theory as they were assumed to -0.259, 0.455 respectively. Meanwhile, it indicated characteristic of essential good by showing negative (-) income odds ratio estimate. When it comes to cross-price elasticity of coffee and cigarette, it was found to be a complementary relation as its cross-price elasticity was assumed to -0.121. Besides, it was found that male consume more coffee than female, while people in their age of 50s consumes mostly. In conclusion, this study suggests necessity of reconsidering coffee as important goods when Consumer Price Stabilization Policy is determined, as coffee shows characteristic of essential goods which is inelastic.
Keywords
Cross-price elasticity; Income elasticity; LA/AIDS model; Price elasticity; SUR;
Citations & Related Records
Times Cited By KSCI : 5  (Citation Analysis)
연도 인용수 순위
1 Heejo Bang, Hyunsoo Lee, "A Case Study on the Space Marketing Strategy for Coffee Shops around the University place", Design Convergence Study, Vol. -, No. 25, pp. 3-14, 2010.
2 Hyunseok Yang, "Econometric analysis of Tobacco Demand", Korea University, PhD thesis, 2011.
3 Jiyeon Jung, Hyunmi Kim, Sukbin Cha, "The Differences of Sensitivity to Americano Coffee Price Based on Consumers' Demographic Characteristics and Use Patterns Using Price Sensitivity Measurement", Journal of Tourism and Leisure Research, Vol. 24, No. 5, pp. 241-261, 2012.
4 JoongAng Ilbo, "coffee life, Now is the beginning", 2013, 04, 25. http://pdf.joins.com/article/pdf_article_prv.asp?id=DY01201304250016
5 Sanghee Kim, Minhwa Kim, Jaemin Park, "The Influence of Brand Personality on Satisfaction and Loyalty in Coffee shop Industry: A Focus on the Mediating Effect of Brand Congruency", Journal of Tourism Sciences, Vol. 35, No. 3, pp. 57-83, 2011.
6 Sanghyuck Kim, "The Impact of Household Income on the Coffee and Tea Drinking Expenditure: A Study Focused on Employment Type and Income Bracket", Vol. 36, No. 8, pp. 231-247, 2012.
7 Seongim Choi, "Analyzing Determinant of Demand for Brand caf", Sejong University, Master's Thesis, 2010.
8 Sooncheon Park, "A Study on the Developmental Process of Coffee Market in Korea", Kyonggi University, Master's Thesis, 2008.
9 Soyoung Lee, Kozukue Nobuyuki, Jaesook Han, Yeonsook Cho, "A Study of Recognition and Preference Research of Coffee" Food Service Industry Journal, Vol. S, pp. 25-37, 2006.
10 Sunyoung Shin, Lana Chung, "The Preference and Frequency of Beverages related to Health Factor in University Students", Journal of the Korean Society of Dietary Culture, Vol. 22, No. 4, pp. 420-433, 2007.   과학기술학회마을
11 Suwon Mo, Hyeonsang Jo"Can We Predict the Coffee Consumption Demand?", Korea Industrial Economics Association, Vol. 15, No. 3, pp. 295-304.
12 Wonnyon Kim, Jungha Suh, Yangjung Kim, "The Effect of Price Increase on Tobacco Consumption", Korean journal of population studies, Vol. 29, No. 2, pp. 195-213, 2006.   과학기술학회마을
13 Gijin Kim, Taejong Seoung, "A Comparative Study on the Determinants of Customer Satisfaction Revisit Intention and Word-of-mouth between STARBUCKS and DAVINCI: Focusing on the Transformative SERVQUAL", The Korean Journal of Culinary Research, Vol. 17, No. 1, pp.12-25, 2011.   과학기술학회마을
14 A. Deaton, J. Muellbauer, "An Almost Ideal Demand System", American Economics Review, Vol. 70, No. 3, pp. 312-326, 1980.
15 Byungho Choi, Youngeun Kim, "The Comparative Study on Demand, Customer's Satisfaction and behavioral intention to Global and Domestic Coffee Brand Shop: Focused on 20th, 30th", Food Service Industry Journal, Vol. 6, No. 2, pp. 77-95, 2010.   DOI
16 Dongkeug Kwon, "Effects of Reusing and the Recommendation Depending on the Satisfaction Rate of Coffee Shop Service Quality", The Journal of the Korea Contents Association, Vol. 11, No. 5, pp. 449-465, 2011. DOI: http://dx.doi.org/10.5392/JKCA.2011.11.5.449   과학기술학회마을   DOI   ScienceOn
17 Gwangin Byun, Soyoung Lee, Wooje Cho, "Study on the Importance and Customer Satisfaction of Coffee-shop Type according to the Choice Attributes by University Students: Focused on Daegu", Journal of the East Asian Society of Dietary Life, Vol. 19, No. 4, pp. 503-514, 2009.   과학기술학회마을