Analysis Of Household Consumer Demand On Bulk Cooking Oil in Denpasar City

Abstract

Analysis Of Household Consumer Demand On Bulk Cooking Oil in Denpasar City
Nowadays cooking oil is sold in two forms; one is referred to as bulk cooking oil
‘minyak goreng curah’ and the other is referred to as packaged cooking oil ‘minyak
dalam kemasan’ with a particular trademark. However, the consumers in Denpasar still
prefer the bulk cooking oil to the packaged cooking oil. This present study was intended
to identify the factors contributing to the demand for the bulk cooking oil and the
elasticity of the demand in Denpasar City. The study was conducted at Satrya Market,
Sanglah Market, Kreneng Market, and Badung Market, which were all purposively
determined. The samples were taken using the accidental sampling technique, totaling
40 and were purposively determined. This research uses Cobb-Douglas function with
transformed data. The independent variables were X1 (the price of the bulk cooking oil),
X2 (the price of the packaged cooking oil), X3 (the price of chicken), X4 (the number of
family members), and X5 (the family income). The result of the model was as follows
lnY = -5,876 – 2.184lnX1* + 3.588lnX2* - 0.332lnX3 + 0.311lnX4* + 0.244lnX5*. The
factors which contributed to the demand for the bulk cooking oil were its price, the price
of the packaged cooking oil, the price of chicken, the number of family members, and
the family income. The price of the bulk cooking oil showed elasticity. The cross
elasticity showed that the packaged cooking oil was a substitution commodity and that
chicken was a complementary commodity. The income elasticity showed that the bulk
cooking oil was an inferior commodity.