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
In
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
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
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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