1. Contemporary
coffee business
during the
Covid-19 period
in Indonesia
Dini Turipanam Alamanda
Suryana
Lili Adi Wibowo
Amara Febriyenti Gunawan
The 13th SCBTII International Conference on Sustainable Collaboration In Business,
Technology, Information and Innovation
July 27th, 2022 | Telkom University Indonesia
Universitas Pendidikan Indonesia
Universitas Garut
2. Contemporary Coffee Phonemenon
Drinking coffee has
been a habit of
Indonesian people for a
long time
2016
2019 -- 2.950 outlets in
Indonesia
Indonesian coffee
consumption will reach
370 thousand tons
(2021)
Coffee shops are
clustered in office zones
(Sudirman, Jakarta)
Contemporary coffee offers not only
flavor innovation but also an
Instagramable spot.
Third wave”
(specialty coffee era)
3. Pandemic Covid-19
Pandemic impacts the wakening of people's buying power, including
coffee purchase and the lifestyle of drinking coffee in a coffee shop.
Ahmed et al. (2016) stated that people's purchasing power has no
impact on buying interest. Socio-demographic factors include age, life-
cycle, education level, income level that affect buying decisions
Determine the pandemic impact on Indonesian consumers' buying
interest in contemporary coffee products based on socio-demographic
factors.
Research Objective
4. H₁ : Age has a positive impact on consumers' buying interest in contemporary coffee
H₂ : Life-cycle has a positive impact on consumers' buying interest in contemporary coffee
H₃ : Education level has a positive impact on consumers' buying interest in contemporary coffee
H₄ : Income level has a positive impact on consumers' buying interest in contemporary coffee
Literature Review
Purchase interest refers to a consumer's
willingness to buy a specific product or
service, and purchases are critical to a
company's sales growth and market
share (Shim et al., 2021).
Schmidt et al. (2021) show that
variables of age and education level
influenced buying interest.
That is supported by Ahmed et al. (2016)
that discussed socio-demography
dimensions consisting of age, life cycle,
education level, and income level that
significantly positively impact
consumers' buying interest
Like Li et al. (2021), income is the
variable with the highest value in the
interest in buying a product sample.
Almulhim & Abubakar (2021) about
demographic variables, it can be stated that
age, life cycle, income, and education have
an important influence on buying interest.
Age
Life-cycle
Education
Income
Level
Buying interest
5. Research Methodology
June to October 2021
Quantitative
Causal
80% from various
big cities
20% from small
cities
12 popular coffee
shops in
Sudirman, Jakarta
Binary logistic regression
SPSS 23
200 Respondents
Model design Age
Life-cycle
Education
Income
Level
Buying interest
YES
NO
1
0
> 17 years old
17-25 years old
< 25 years old
ready
Not ready
High-school students
Undergraduate students
Graduate students
< 1 million rupiah
≥ 1 million rupiah
Model feasibility using chi-squared Pearson,
Hosmer, and Lemeshow test,
the accuracy of the model classification,
and ROC curve.
7. —Block 0: Beginning Block —Block 1: Method = Enter
Observed
Predicted
Buying Interest
Percentage Correct
No Yes
Step 0 Buying
Interest
No 0 43 ,0
Yes 0 157 100,0
Overall Percentage 78,5
Classification table block 0
B S.E. Wald df Sig. Exp(B)
Step 0 Constant 1,295 ,172 56,612 1 ,000 3,651
Variables in the equation block 0
Score df Sig.
Step 0 Variables X₁ ,716 1 ,398
X₂ 105,701 1 ,000
X₃ 6,813 1 ,009
X₄ ,167 1 ,683
Overall Statistics 106,896 4 ,000
Variables not in the equation block 0
Observed
Predicted
Buying Interest
Percentage Correct
No Yes
Step 1 Buying
Interest
No 37 6 86,0
Yes 14 143 91,1
Overall Percentage 90,0
Classification table block 1
B S.E. Wald Df Sig. Exp(B)
95% C.I. for EXP(B)
Lower Upper
Step 1a
X₁ ,792 ,806 ,966 1 ,326 2,207 ,455 10,710
X₂ 4,165 ,538 59,828 1 ,000 64,380 22,409 184,958
X₃ -,784 ,480 2,670 1 ,102 ,457 ,178 1,169
X₄ -,054 ,573 ,009 1 ,926 ,948 ,308 2,917
Constant -1,121 ,822 1,859 1 ,173 ,326
a. Variable(s) entered on step 1: X₁, X₂, X₃, X₄.
Variables not in the equation block 1
Y= -1,121 + 0,792X₁ + 4,165X₂ -0,784X₃ -0,054 X₄
8. Discussion
Demographic factors
consisting of age and life-cycle
had positive relationships with
consumers’ responses to
buying products
Shao et al. (2022)
Urdea et al. (2021)
Age is one of the important
factors in consumers' buying
decisions
Modern coffee shop managers
can consider efforts to
maintain business in the post-
pandemic era
Facing competition in the
industry and across industries
is undoubtedly not easy
Coffee shop managers can
start a business defense
strategy by determining the
age segment of the customer
By segmenting the market based on
age, modern coffee shop
companies can better understand
the needs and desires of potential
consumers.
Regarding the life cycle, a
young employee or youth
most likely enjoys activities at
a coffee shop
The activity of drinking coffee
has begun to shift, no longer
just inserting delicious coffee
but also being a medium of
interaction and others
The positive growth of the
coffee business, especially
those developed by young
people, is due to the
increasing culture of drinking
coffee among young people
9. Conclusion
78,5% of respondents were interested in
buying contemporary coffee during the
pandemic
socio-demographic variable has a
significant effect on buying interest,
where age and life-cycle positively
correlate with the increase of consumer
buying interest
education level and income level did not
positively correlate with the increase in
consumer buying interest during the
Covid-19 pandemic
10. Recommendation
1. The consumer segment, which do
not have high education and not
have a high income, have mature
in age and have positive attitude
towards the life-cycle is the most
potential buyers of contemporary
coffee
2. The pandemic has created a
digital transformation in the
contemporary coffee business.
3. Synergy with online transportation
services for food delivery needs to
be more focused.
