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Journal : Synergy In Economic

Compensatory Consumption and Urban Coffee Culture in Indonesia: A Qualitative Exploration of Emotional, Social, and Identity Motives Eldon, Mokhamad; Sastra Waskita, Gautama
Synergy in Economic & Business Management Vol. 2 No. 1 (2025): Article in Progress
Publisher : Kreatif Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.2222/f6wmdr39

Abstract

This study examines the growing phenomenon of compensatory consumption within Indonesia’s rapidly expanding urban coffee culture, where consumers increasingly use café experiences to cope with emotional pressures, social expectations, and identity negotiations in modern city life. The research aims to explore the emotional, social, and symbolic motives driving coffee shop visits and how these motives shape consumption behaviors. Using a qualitative exploratory design, data were collected through in-depth interviews and participant observation across several urban specialty coffee shops in Indonesia. The findings reveal that consumers use coffee consumption as a mechanism for stress relief, social bonding, self-expression, and identity construction, positioning cafés as symbolic spaces that offer psychological compensation beyond functional product value. The study contributes to the existing literature by extending compensatory consumption theory to a Southeast Asian context and offers practical implications for coffee entrepreneurs in designing emotionally resonant and identity-centered customer experiences.
Cobb–Douglas Analysis of Technical Efficiency in Banyuwangi Batik Small and Medium Enterprises Mohammad, Ardi Setyawan; Eldon, Mokhamad
Synergy in Economic & Business Management Vol. 2 No. 2 (2025): Strategies for a Dynamic Business Environment
Publisher : Kreatif Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.2222/h02qbm25

Abstract

This study examines the technical efficiency and production elasticity of batik small and medium enterprises (SMEs) in Banyuwangi Regency, Indonesia. Using panel data from 12 active SMEs observed between 2018 and 2023, the Cobb–Douglas production function is estimated through panel regression techniques. Model selection tests indicate that the Random Effect Model is the most appropriate specification. The results reveal that capital and production equipment significantly and positively affect output, whereas labor exhibits a significant negative elasticity, suggesting overutilization and managerial inefficiency. Raw materials show no statistically significant contribution to production performance. The estimated return to scale equals 1.63, indicating increasing returns to scale and implying that proportional input expansion generates more than proportional output growth. The model explains 89% of output variation, demonstrating strong explanatory power. These findings highlight the importance of capital access, technology upgrading, and labor optimization in improving SME productivity. The study provides empirical evidence to support efficiency-oriented policy interventions for traditional creative industries.