INBCT 4.2

 

 

ANJA HÄRKÖNEN

MINNA MATTILA

JUHA MUNNUKKA

 

 

 

 

 

“…like using a washing-machine: you will learn it!”

- Ageing consumers and their technology perceptions

 

           ABSTRACT

Population ageing is a global phenomenon. By the year 2050 the number of older persons in the world will exceed the number of young in for the first time in history.  In future ageing consumers will form the largest customer segment which is very heterogeneous. They will be very potential customer also for technological products. This paper examines reasons and barriers for technology perceptions and  usage among ageing Finnish customers.     

          

 

 

 

 

 

 

1. INTRODUCTION

     By the year 2050 the number of older persons (60 years and older) in the world will exceed the number of young (under the age of 15) for the first time in history. Population ageing will have an impact on economic growth, savings, investments and consumption (Seniorwatch 2002). Population ageing is a global phenomenon affecting every citizen of the world. By the year 2010 one out of seven people in the USA is expected to be 65 years of age or older (Oumlil &Williams2000).

     In Europe there is a transformation in the experience and meaning of old age. The retirement is no longer the straightforward entry point to old age and it is increasingly anachronistic as a definition of older age. At the same time, with increased longevity, older people are living longer and healthier old ages and, as a result, the threshold of frailty is being pushed back (Walker & Maltby 1997).

     The growth in the ageing population is likely to affect business in many ways. Companies will have to understand the consumptions needs of older people and how the older market responds to various marketing activities of the firm. Businesses are also likely to be influenced by the ageing workforce and as the population ages many younger workers must provide care for older family members and companies are beginning to feel the pinch of elder-care benefits and employee absenteeism (Moschis et al 1997).

     Older people feel that they are not adequately recgonised as a potential user group of technological products. They feel that new technologies are always connected with young people in the media (Seniorwatch 2002). Many older people will already be familiar with technology and therefore they show demand for technological products and services. Nowadays ageing people have very active lifestyle and it is also worth remembering that they have better financial possibilities for that than the previous generations. There are many new market opportunities because more user-friendly products attract users and can win  market- share(Seniorwatch 2002).

           2. AGEING MARKET

     Maturity represents the longest life-stage among all other traditional marketing segments, even if the mature consumer is specified to be 60+ years old. Nowadays ageing consumers are active, alive and, according to John Nielson and Kathy Curry- among the most creative people of our society (Nielson&Curry 1997).The ageing consumer is definitely a very complicated market and most marketers see this market as a group of vulnerable old people instead of an obvious marketing opportunity. Also advertising shows ageing consumers as ancient and wrinkled and covered with gray hair (Leventhal 1997). 

     The ageing market is not homogeneous. When people aged they become more dissimilar than similar (Moschis 1991). The market can be segmented to 32 segments by using five essential segmentation variables: discretionary income, health, activity level, discretionary time and response to others. (Bone 1991).  Although the ageing market consist of very different segments, there are a few common characteristics. They have a strong desire for information and education. Because of that an increase in product information will be needed to meet the needs of more experienced, educated and sophisticated consumers.  Other is the expectation of the competent service(Dychtwald 1997).

     Using stereotypic profiles of ageing consumers is a very common mistake among marketers. They may believe that ageing consumer has poor health, no interest in romance and adventure and are isolated. It is true that many old people are like that but it is also true that many others do not fit these descriptions. For example, based by 74 interviews of Finnish ageing consumers, the typical Finnish ageing consumer manage well his/her every day life, is willing to get new experiences and is satisfied with his/her economical situation (Härkönen 2002).The ageing consumer market consists of ageing people who exhibit a great deal of variability with the respect to the way they look, think and act (Moschis et al.1997). Nowadays, the ageing consumer is like everyone else; most of them feel like they are some 20 to 25 years younger than they really are (Mattila et al 2002). In addition basic character traits do not change with age, as Richard Leventhal reminds( Levethal 1997). Ageing can be divided in two distinct concepts: the biophysical ageing and psychosocial ageing.  According to George Moschis, biophysical ageing includes changes in sensory and intellectual functioning of the organism, diminished mobility and physical strength, changes in outer appearance, ageing and death of cells. Biophysical ageing produces many outward signs of ageing that we as individuals notice in not only ourselves but in others. The other form of ageing is psychosocial ageing. This implies that an ageing individual is considered old and she or he has to deal with all of the emotional changes that come this new classification and phase of life. Psychosocial changes involve cognitive changes and changes in attitudes, personality and needs. Social changes relate to changes in an individual´s position in society (Kennett et al 1995).

     The common belief is that ageing consumer takes new products with a grain. On the contrary, they will try new products, but they will try them for different reasons than the younger market. Ageing consumers have had a lot of experience and they are not going to try something because it is trendy or it is the “the thing to do”. They are going to try something if it can meet a personal, specific need that they have. The ageing consumer is discerning and very selective. The actions are more important than words to ageing consumers (Leventhal 1997).  David Wolfe has found five key values which form the motivations of the ageing consumer. These values are autonomy and self-suffiency, social and spiritual connectedness, altruism, personal growth and revitalization.  Ageing consumers tend to be motivated by the capacity of a product or service to be a gateway to experiences and not by the attributes and direct functional benefits of the product. (Wolfe 1994).

     Companies must remember that serving the mature market really means respecting a whole new set of criteria that ageing individual use to assess and decide if the product or service is right for them (Nielson&Curry 1997).Most older people accept and enjoy their life stage, and are as willing to spend their life stage and are as willing to spend their money as any other generation, but only if the product and the message are relevant (Carrigan & Szmigin1999). Mature market reads more and especially older age groups they like to interact.  The market may also be cynical. (Leventhal 1997).

           3. AGEING CONSUMERS AND TECHNOLOGY

     When marketers are trying to introduce technological products to mature consumers they have to overcome some extended clichés: “older people reject technology” “technological devices are too difficult to be used by older people”. In fact, there is no evidence that older people dislike the use of novel technology in a larger measure than other people do. The rejection is frequently due to low quality of interface. Automatic teller machines are a good example. In addition there are many studies that show that adequately trained older people are in general able to use technology.  Designers who have had contacts with older people are surprised of the rapid adaptation and the level of efficiency that these users are able to reach in short time when the device adequately fulfills their needs (Abascal & Civit 2001).

     Older people are known to be as interested in technology as any other group, if they are properly informed. It is useful to distinguish the market for mainstream products and services from that for more specific products and services (Seniorwatch 2002). They want to find products and services on the market which they regard as appealing and useful and they will wish to fully participate in society as independent citizens. It has been proven that the involment of elderly people in the product development process creates extensive added value, besides being simple and cheap in its execution (Bosma et al 2000).

     Technology can play an important role of solution of social problems. A better use of technological options in products attractive and useful for ageing consumers can contribute to an improvement of their quality of life and easier social integration (Bosma et al. 2000). Telecommunications offers an enormous potential for older people with communications barriers, which can be broken down by means of the adequate technological devices. Telecommunications have an impact on this group`s integration into an interrelated society. To older people the telephone remains very important to ensure regular social contacts with relatives and friends. The telecommunications network is proving to be a key element in the development of the overall information highway (Gilligan et al 1998).

     It is essential that mature consumers are involved in any consumer-centred adaption of technologies whenever they are used in products and services. If not, the outcome will be that the products and services will not meet the wishes and requirements of seniors who will not accept them. When products do not consider the possibilities and limitations of the ageing, they will be useless for mature consumers. A large market potential will then be left barren. (Bosma  et al.2000).

     There are two conceptions of the vision of technology and ageing ; a consumerist vision and a solidarity-based vision. The first vision is very recent in France, for example. According to it older people are identified as a strongly emerging market, whose specifity and purchasing behaviour need to be better understood. The second vision has been the last 20 the most influential in terms of the structuring of service supply, notably due to the influence of the public authorities (Gilligan et al.1998).

     The age of 70 is a turning point of having an interest in technology. Consumers over 70 have less interest , they have lower education and lower income than younger. Still there is a potential interest in multimedia and its applications. Older women have less interest in technology in comparison in their male counterparts. Older women tend to have a lower educational level and lower level of financial resources. Older men, instead, have had more opportunities and more support in getting to know about new technologies whereas women are less confident and more sceptical toward it. Nevertheless, it is worth noticing that women are more prepared to learn from others such as through a course (Gilligan et al 1998).

     Mature consumers need to be well informed about the advantages of new services for example an internet connection. Then if the mature consumer recognise the benefits and learn to value the services, then the price that has to be paid for access becomes comparatively low(Gilligan et al 1998).  Once technology reaches maturity and its benefits are well understood, mature consumers are as likely to use it as younger people. The key to the successful introduction of a technology for older adults is to make sure it is affordable, easy to use and delivers significant benefits. (Adler 2002).

     Mature consumers seem to be interested in new possibilities for communications, education, leisure activities and home shopping. On the other hand older people feel a certain apprehension in relation to the new technologies, but they know how to make use of equipment corresponding to their real needs, like television and remote controls (Gilligan et al 1998). Organizations interested in communicating with the elderly about innovations should contact them directly rather than rely on publicity on word-of-mouth. Elderly consumers do accept change when the technology meets their needs and it effectively communicated (Gilly  & Zeithaml1985).

     There are five barriers to overcome in marketing technology to elderly people. 1. Product Usage: Innovations may fail to be adopted by the elderly because use of the new product is incompatible with the physiological abilities. Because as people age, there are reductions in vision capacity, touch sensitivity and muscle strength. 2. No Perceived Value: Aged people adopt innovations only if they perceive a clear benefit in the new product. Since the needs of the age groups differ, so do the perceived values of product innovations. For Example: new technologies have made possible many innovations that save time – elderly have time, time saving is not important- they do not adopt innovations. Older people have adopted the innovation of electronic funds transfer banking : it is safe and dependable (Lunsford & Burnett 1992).

     The third barrier is self image: According to research, the elderly market is segmented by self-image. New age elderly are supposed to have a cognitive age younger than their chronological age and their self-image is of someone younger and healthier than they may actually be. This group is more likely to try new products than the elderly in general. New products with great potential to improve the lives of elderly have been rejected because of they were products for old people. The fourth barrier is enduring cultural values: The behavior of elderly consumers is a product of  their enduring values, which are formed over a lifetime of experiences. This generation values a hard work, loyalty and saving. These consumers will be very critical in evaluating new innovations and be hesitant to spend their money self-indulgently. Elderly consumers describe themselves as brand loyal. Once they have made their choices, they remain loyal to the brands that perform as expected (Lunsford & Burnett 1992).

     The fifth and last barrier is different kinds of risks.  Three perceived risks influence the evaluation of a product innovation: physical risk, economic risk and functional risk. The first risk, physical one, refers to the concern that the product may result in harm to life or limb. This risk exists in the elderly consumer´s evaluation of drugs and other health products. The second risk, economic risk, becomes a concern if the consumer perceives the product to be a significant financial investment. The third one, functional risk, is operating when the elderly fear the product will not perform as decisions (Lunsford & Burnett1992).

     Many older people have motor restrictions that can led them to potentially risk situations that increase when they try to carry on an independent way of life.  Mobile communication could help them feel much secure about themselves. Also in situations of illness and home accidents require a quick and reliable communication channel to obtain urgent help. Mobile telephones are a way to reach services that contribute to socialization and the combination of personal communication, security and access to integrative services gives to older people more opportunities to carry out an independent way of life (Abascal & Civit 2001).

     The steady expansion of communications technologies has been major factor in keeping people connected in a mobile, geographically diverse society. E-mail and instant messaging has provided an entirely new option for people to communicate each other. And eventually, the distinction between a wired and wireless phone will disappear, and each individual will be reachable through a single number no matter where she or he is. These capabilities will appeal to older consumers, for they want to share they live with each other, across distance and across generations (Adler 2002).

           4. METHODOLOGY    

      For this study the researcher interviewed 17 ageing consumers over 60 years of age. The youngest informant was 62 years old and the oldest were 78 years old. 13 of interviewees were men and 4 of them were women. Interviews were made in small groups, so ageing people could discuss with each other. The discussion inside group stimulated the informants and the researcher could get more information in this way.

     Group interviews bring together small numbers of people to discuss topics on the research area. The views expressed in a group may well be influenced by the group´s dynamics and so differ from those elicited in individual interview. The task of group interviewer is not conduct a individual interviews simultaneously but facilitate a comprehensive exchange of views in which all participants are able to “speak their minds” and respond to the ideas of others (Walker 1993).

     Group interviews have both advantages and disadvantages. Perhaps the most obvious reason for interviewing in groups is cost and speed (Hedges 1993). The group may also prove to be a heuristic experience for participants and this may be utilized in the context of an action research project (Walker 1993).In a group setting people can be helped and stimulated both by their own interaction with other group members, and by watching and listening to other people interacting. It is also advantageous that groups can stimulate their members and because of that their members can also be used creatively to generate ideas. It is worth remembering that group interviews have also disadvantages. People can feel constrained in what they say in front of their peers and this makes generally less suitable for handling sensitive controversial. Groups tend to take longer than individual interviews, and it could be hard to get given number of voluntary participants (Hedges 1993).

 

           5. RESULTS

     Interviewees were divided up two groups, 60-70 years old and 71-80 old.  Among younger group (60-70 years old) the general perception was more positive than negative. The positive perception seems to depend on technology usage during the working career. “I have worked with technology all my working career, so I have always had a very positive attitude towards technology” (Male, 67 years.) Technology makes many things easier and ageing people appreciate it. “When I was working, I used to write with old Remington…and now I have computer; it is so much easier!” (Male, 69 years.) Also interest to technology seems to last to older age: “I want to know what it is inside the computer. I want to literally go in. I have always been interested in technology.” (Male, 67 years.)

     Younger ageing consumers find that technology has many advantages. Noticing advantages helps creating positive perception toward technology. They find short messages and e-mail very good way to communicate with other people. It is worth noticing that they send short messages to their same aged friends or relatives. “ I send short messages to my friends and to my sister and they send short messages to me. Sometimes we send little naughty messages…they are so fun to send!” (Female, 66 years.) They find e-mail a way to influence on society: “If members of Parliament talk rubbish, I mail them immediately. “ (Male, 67 years.)

     Technology creates also bond between generations. Grandparents and their grandchildren can spend time together with help of technological products like computers. This helps also creation positive perception; younger ageing consumers know that without computer they would not spend so much time with their grandchildren. Younger ageing consumers realize that using technology is essential in modern word. “If we old want to be treated in the same way as the younger, we have to have computers and mobile phones.” (Male, 67 years)

    There were also negative technology perceptions among younger ageing consumers. There were four reasons which influenced negatively their perceptions. The first reason was that because of technology people do not visit so much anymore. And because of that, people talk more with machines than with other people. Other reasons were the high prices of technological products and the difficulty of controlling technology. “ People should talk with people not with machines.” (Male, 69 years) Some of the younger ageing consumer said that they fear technology. Fear is common those ageing who have not used to using any kind of technical machines. Secondly, they feared that they if they not know exactly how the mobile or computer works, they will break it.” I have this terrible fear, that the gadget will get broken because I do not know how to use it” (Female, 66 years.)

     The older (71-80 years) ageing consumers have more positive perceptions to technology. “This computer thing… it is great!” (Male, 78 years.)  In their opinion, technology usage is good for them in many ways: it is good exercise for the brains, “working with technology is a good exercise for brain. It is very important to all of us ageing people. “(Male , 72 ) The perceptions were positive because of the fact that technology keeps them track in modern world and  older ageing consumers are very aware that it is impossible without technology.  “Old people will drop out of  development if they do not learn use mobile phones and computers. That is the fact. “(Male, 76 years.)  

     The older ageing consumer thought that using technology during working live affects negatively their technology perceptions. They want to avoid it because it brings bad memories. Among these people also there were some people who were afraid of using technology. The biggest reason for fearing was connected themselves. They were afraid that they do not learn to use new technology.    

     Relatives and friends have a great influence in technology usage among ageing people. Among both groups, (60-70 years old and among 71-80 years old)the most common way of getting technological devises is through children or because of children. “We purchased fax because of our daughter went to work in China, and it was the easiest way to keep in touch with her. After that children bought us mobile phone and couple of years ago, our youngest daughter bought us a computer.” ( Male , 76 years.) “My child brought their old computer to me and said:  start to learn to use it!” So I started…” (Female, 76 years.)  “ I have had a computer for three years now. My children moved away from home but they left the computer to me.” ( Male, 72 years old.)

     Ambiguous instructions, lack of knowledge, high prices and lack of knowledge of languages are barriers why ageing people do not use technology. These barriers were same in the both groups. The language used in instructions should be simple enough and very specific. It is worth remembering, that technology language is strange to many ageing people. “These technology terms…they are so difficult to understand. When I was working I knew that the plank is plank. But technology-language is whole new language to me.” (Male, 78 years.)  “Am I stupid or what, but I can not understand these instructions! Engineers write them for each other! Nobody has ever learned to send short message by following the instructions!” (Female, 66 years.)

     The lack of knowledge of language is also problem among Finnish ageing consumers.  It is common that instructions are only in English. This reduces also internet usage, because English is most common language used in web pages. “Our generation has not learn languages in the school and this reduces our technology usage. This lack of knowledge of language is a big problem.” (Male, 67 years.)

     Lack of knowledge creates fear toward technology. They fear that they break devices if they do something wrong. This fear seems to be common and strong among ageing individuals. LaForge(1989) has noticed that elderly individuals suffer often from “learned helplessness” (Oumlil &Williams 2000). If something goes wrong ageing might feel themselves helpless and form a negative attitude toward technology. As Wolfe (1994) noted, autonomy is very important to ageing consumer, and they are not going to purchase things, which make them feel that they have lost their autonomy.

     High prices prevent technology usage among ageing people.  The cost factor is recognized as a major barrier for older people in accessing new information and communication technologies. Before using a new application older people will have to be well informed about the benefits that they will derive from it. On the other hand, this consumer group could afford to buy new equipment, but are often hesitant about doing so. Therefore it is not only the cost of the equipment but also a lack of information when purchasing new equipment. (Gilligan et al 1998,25)   “Even hundred euros is big amount of money for retired person.” (Male, 69 years.)

           6. DISCUSSION

     As mentioned before, there are five key-values that form the motivations of ageing consumers. As the results show, all these values, autonomy and self-suffiency, social and spiritual connectedness, altruism, personal growth and revitalization, can be also found in the technology perceptions of Finnish ageing consumers, both the younger and older ageing consumers. But there can be found also a new value that has very strong influence in their motivation. Among interviewees there is strong desire to be treated the same way as the younger generations. They see technology as a good way of achieve equality. They know that they themselves  have to adapt to technological development. “ I have never had nothing to do with technology. But I thought that I have to learn  to use mobile phone and computer now, because maybe later it is impossible. Technology usage is so essential.” (Female, 66 years.)

     According to Gilligan et al.(1998) the age of 70 is a turning point of having an interest in technology. It is worth noticing that among interviewees this fact was other round up. People age of 70 had more positive perceptions toward technology and they were very keen on learning to use technological products. They were concern the fact that ageing is diminished they ability to learning. As results showed, this lowered ability to learn can affect negatively technology perceptions. This also implies that as the Moschis (1991) and also Bone (1991) say the ageing market is not homogenous. An ageing individual can be as interested in technology as 16 years old boy.

  Results from these interviews support the results of Bosma et al. (2000). Among Finnish ageing consumers there seems to be potential market for technological products and services that regard useful. Bosma et al (2000) also suggests that elderly people should involve in the product development process. As results showed, ageing consumers have opinions how products should be develop. Their life experience is a great and precious resource which should not be wasted.

           7. CONCLUSION

     The common cliché : “older people reject technology” was not true among interviewees.

 In general, their attitude toward technology usage is more positive than negative and they also are keen in learning to use technological devices. That is mainly because they want to develop themselves and because they wanted to be treated in the same as the younger generations. Ageing people are very aware of the importance of technology.  They see technology as a natural result of development, “as a child we had bikes, now children have computers”. (Male, 76 years)

       There are some barriers that make technology usage difficult among older Finnish people. The lack of knowledge of language and   ambiguous instructions create biggest difficulties. The lack of knowledge of language is problematic, because it can be founded to difficult to learn new language at first at after that a new technology. In future this problem will be smaller, because the ageing consumers of the future have learned several languages in school.

   The marketers should pay attention to fact that ageing people found instructions too difficult. Because this implies, that other consumer group may have same kind of problems. If instructions were clear enough also ageing people would be able to understand them. At least, it would not hurt any company, if they make instructions which are clear to every consumer.

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