Factors Affecting Consumer Demand for Cayenne Pepper in Denpasar City, Bali Province

Abstract

Factors Affecting Consumer Demand for Cayenne Pepper in Denpasar City,
Bali Province
Cayenne pepper is one of the national leading commodities that is needed by the
community. Denpasar City, which has a high population density and per capita food
expenditure, is a potential market for cayenne pepper production centers in Bali
Province. Consumer demand for cayenne pepper is sometimes uncertain due to the
influence of various factors. This study aims to analyze the factors that influence
consumer demand for cayenne pepper and analyze its demand elasticity in Denpasar
City, Bali Province.This research was carried out in Badung Market, Kreneng Market,
Ketapian Market, and Sanglah Marketwhich were determined intentionally. Sampling
used accidental sampling technique. The number of samples was determined by quota
sampling as many as 50 respondents. This study used the Cobb-Douglas request
function which is transformed into multiple linear forms of natural logarithms (ln).The
results showed that the factors that influence consumer demand for cayenne pepper in
Denpasar City, Bali Province were the number of family members and tastes. Price
elasticity at D = 0 (not interested in cayenne pepper) and D = 1 (interested in cayenne
pepper) shows that the demand for cayenne pepper is perfectly inelastic. Cross elasticity
at D = 0 (not interested in cayenne pepper) and D = 1 (interested in cayenne pepper)
showed that large red chilies, tomatoes, and shallots are items that were not related to
cayenne pepper. Income elasticity at D = 0 (not interested in cayenne pepper) and D = 1
(interested in cayenne pepper) indicates that the demand for cayenne pepper was
inelastic to income.