Abstract

This study aimed to identify the determinants influencing total coffee demand in coffee market after taking into consideration demographic features, coffee consumption features, and coffee involvement. Questionnaire survey targeted men and women aged 20 and older living in either Seoul or Gyeonggi Province and a total of 700 valid samples have been used in this study. As a way to achieve study objective, the determinants have been estimated by applying the Tobit model. When it came to demographic features, men with high income exerted influence on coffee consumption increase. When it came to occupation, students and education industry had less coffee consumption. In the case of having a coffee extracting machine at home, they had higher coffee consumption at home and at work. Higher coffee involvement had an influence on coffee consumption increase. When it came to the results which analyzed limitation effects, the consumption amount decision had a greater extent of explaining market response compared to market participation decision. The study results imply that policies aiming for enhancing coffee consumption by existing consumers, adding to participation by new consumers, are necessary for fundamental expansion of coffee consumption.

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