Insights into the Mature Market

Project Looking Glass: Rediscovering 55+ Generations

MRA Annual Conference 2008

PLG QUALITATIVE STUDY: ETHNOGRAPHIC IMMERSION AT

GARDEN SPOT VILLAGE

WHAT WE KNEW…

What We Knew

• 55+ is larger than Hispanic and African American markets combined

• Over 10 million boomers in AARP• By 2030, the 65+ population will double• Over 75% of the nations wealth• Over a trillion dollars in disposable income• Control 70% of all disposable income• Life expectancy of 55+ continues to rise

WHAT WE OBSERVED

What We Observed

• Two experienced researchers• Collaborative effort between

and

Actionable Insights from Marketing Research

• 31 days-August, 2007• 24/7 living at a retirement community• 850 older adults on campus• One in an apartment, one in a cottage

What We Observed

• Over 20 focus groups• What every 35-year-old needs to know• Fulfillment• Products and services

• Over 20 field trips• Grocery• C-store• Pharmacy• Restaurant

• Daily journals• Daily blog• 100 personal interviews• 125 hours of tape

THE 65+ MARKET

65+ Market

• 65+ as a whole• Patience, thrifty, honor, respect authority

• Shaped by their common past• Depression made them frugal• WWII elicits commitment to sacrifice and “something bigger than themselves”• Korean War on the heels of WWII –take nothing for granted• Cycles—is it based on economics?

• Silent, WWII, Boomers, back to conservatism• Previously treated as ONE generation

• Believe marketers perceive them as “dumb”

65+ Market

•Opportunity in diverse segmentation•Age is not the only divider•Mobility•Marital status•Status quo v. change•Education•Geographic: Rural v. urban•Faith

• Family and Pets • Many do not have the connection they would like

to have with their children, busy boomers

• Changing role of men• Cooking to cleaning—men do • it differently• Arthritis in women affects role

• Service Oriented• Opinions strongly influenced by their peers

– trust the elders

65+ Market

65+ Health

• Health is one of the segmenting factors• Healthy or not• Will be highly definitive among boomers• Natural aging process effects response to

advertising

65+ Health

• Vision• Retina hardens=harder to distinguish color• Pupil reduction=less light enters the eye• Name tags, prices, directions, labels hard

to read

• Hearing• 40% of 65+ have hearing loss• Hearing aids do not solve all issues• Alarms to announcements

65+ Health

• Touch• Package size and “gripability” • Parkinson’s effects 30% of 75-to 84-year olds

(ezilon)• Older adults help each other carry trays, open

doors, move things out of the way

• Reaction Time• Automatic doors, phone prompts• Crossing lights, green to red lights

65+ Health

• Stamina• Housing must be well laid out for older adults• Trollies: retail and in communities• Seating everywhere-even in public restrooms• Parking options, wider hallways, uncrowded

gathering venues, broad aisles in department and grocery stores

• Tables, chairs, eating areas all need to have ample “parking space” for walkers, scooter and wheelchairs

65+ Health

• Stooping and Bending• It’s not getting down, it’s getting up• Product placement• Personal mobility vehicles

65+ Mindset

• 25-TO 45-year olds don’t know the real scoop-older adults are not taking naps

• Don’t fear death, fear how they will die• Embrace loss• Freedom is everything• Driver’s license, physical mobility

• Connections are vital• Sense of faith and community• Not many dreams left to be fulfilled-content

where they are

QUANTITATIVE STUDY: 55+ WEB-BASED LIFESTYLE

SURVEY

DESIGN AND METHODOLOGY

Design and Methodology

• Objective: to understand how the changing physiology and psychology of older adults impacts their day-to-day lives and how to take this information to product manufacturers and service providers in order to improve the quality of life.

• Need: an understanding of the day-to-day needs of seniors in conjunction with what is already known about pre-retirement and retired Baby Boomers, is a critical step in the process of marketing to this audience now and in the future. This will require different approaches to different subsets, rather than treating the entire category as a homogenous population.

• Demographics:55-to 64, 65-to 74-year old, 75+

• Goal total for Phase 1=1,500• 500 retirement community, 1,000 non-

retirement community, age and geographic spread, eventual weighting of the data to those more populated regions

• Initial focus on PA: Home of Varsity and Leap, fifth largest 65+ population in 2005

Design and Methodology

• 69 main survey questions• 5 branch sub-surveys seamlessly

programmed addressing health, living conditions, social, travel and media and technology

• Currently live, hosted on Varsity website www.varsityone.com “take our survey”

• CATI from statistically cut sample/open to CRCC and individual participation

• Current numbers: 400 nationwide• Panel/Omnibus

Design and Methodology

DEMOGRAPHICS

Demographics

Gender

31%

69%

Male

Female

Ethnicity

91%

3% 1% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Caucasian African

American/ Black

Hispanic Other

Demographics

AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KY, MA, MD, ME, MI, MN, MO, MT, NC, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI,

SC, TN, TX, UT, VA, WA, WV, WY

Live In A Retirement Community

78%

22%

No

Yes

Demographics

Age

1%

27%20%

52%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

54 or Younger 55-64 65-74 75+

Demographics

Education Level

3%8%

1% 2%

15%

1%6%

21%31%

12%

0%10%20%30%40%50%60%70%80%90%

100%

Some High

School

High School Some College Associate's

Degree

Technical

School

Bachelor's

Degree

Some

Graduate

School

Master's

Degree

Medical

School

Doctoral

degree

Demographics

Marital Status

35%

9%1%1%

50%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Single/ Never

Married

Married Cohabitating Separated Divorced Widowed

Number of Times Married (if Married)

75%

20%

5%

1 time

2 times

3 or more times

Demographics

Children11%

89%

No

Yes

Number of Children

8%9%9%

26%31%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 2 3 4 5 6 or more

Demographics

Children Still Living9%

91%No

Yes

Grandchildren

16%

84%

No

Yes

Demographics

Distance of Nearest Child

24%

8%17%

51%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<10 miles 11-25 Miles 26-50 Miles 51+ miles

Demographics

Frequency of Communication with Children

2%1%2%3%7%

43%44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Daily Weekly Bi-weekly Monthly Bi-monthly Annually Never

Most Common Form of Communication with Children

2%

67%

0%

28%

4%

0%

10%20%

30%

40%50%

60%

70%

80%90%

100%

E-mail or Instant

Message

In person Letters Telephone No Contact

Demographics

Have Pets

62%

38%

No

Yes

Types of Pets

4%0%

6%2%

64%

52%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cat(s) Dog(s) Fish Bird(s) Reptile(s) Other

MEDICAL / HEALTH RELATED

Medical/Health Related

Type of Health Coverage

3%9%

14%14%

49%

5%

25%25%

0%

10%

20%

30%

40%

50%

HMO

PPO

Tradit

ional

Inde

mnit

y

Medica

re

Medica

id

MediG

ap or

Supp

lemen

tal

None

Othe

r

How Health Coverage is Paid For

3%

13%

24%

7%

14%

39%

0% 20% 40% 60% 80% 100%

I/ We pay out of pocket

Former employer pays

My/ Our current employer pays

Govt/ Medicaid/ Medicare

I/ We pay part and current/ former employerpays part

Other

Medical/Health Related

Long-term Care Insurance

60%

40%

No

Yes

How Long-Term Care Insurance Is Paid For

67%

8% 6%13%

6%

0%10%

20%30%

40%50%60%

70%80%

90%100%

I/ We pay outof pocket

Formeremployer pays

My/ Ourcurrent

employer pays

Govt/Medicaid/Medicare

Other

Medical/Health Related

Life Insurance

36%

64%

No

Yes

How Life Insurance Is Paid For

73%

7% 7% 7% 7%

0%10%

20%30%

40%50%60%

70%80%

90%100%

I/ We pay outof pocket

Formeremployer pays

My/ Ourcurrent

employer pays

Govt/Medicaid/Medicare

Other

Medical/Health Related

Top 7 Diseases/ Illnesses/ Conditions From Aging

49%

43%

41%

25%

18%

16%

11%

0% 10% 20% 30% 40% 50%

Cardiovascular Disease

Cataracts

Diabetes

Menopause

High Cholesterol

High Blood Pressure

Arthritis

Top 6 Symptoms from Diseases/ Illnesses/ Conditions

25%

25%

26%

27%

29%

34%

0% 10% 20% 30% 40% 50%

Hearing loss

Decreased bladder control

Irregular sleep patterns

Fatigue

Vision Impairment

Decreased mobility

Medical/Health Related

Have or Use

11%

12%

13%

88%

1%

3%

4%

6%

6%

6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Visiting Nurse

Non-medical personal assistance

Prosthesis

Wheelchair

Meals on Wheels type service

Home health care

Walker

Hearing Aid

Cane

Eye glasses

Campaign Objectives

Most Important Aspect of Health

51%

3%

46%

Mental Emotional Physical

Most Difficult Aspect of Health to Maintain13%

10%

77%

Mental Emotional Physical

Medical/Health Related

Top Ways to Maintain Health

88%

50%

59%

68%

76%

78%

84%

0% 20% 40% 60% 80% 100%

Take over the counter medications

Take vitamins or supplements

Go to church, place of worship, or spiritual centerregularly

Exercise and keep physically active

Take prescription medications

Visit a general doctor regularly

Eat healthy foods

Sources Used for Health Related Issues

27%

31%

89%

6%

8%

10%

17%

19%

25%

0% 20% 40% 60% 80% 100%

Other

From the radio

I consult family members other than mychildren

From television

I consult my friends

I consult my children

On the internet

From newspapers, magazines, or journals

I talk to my doctor(s)

TRAVEL, LIFESTYLE AND SHOPPING

Travel

Travel

47%

53%

No

Yes

Where Travel

0%

53%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

International Domestic Both

Travel

Travel Frequency

14%

14%

32%

24%

6%

10%

Monthly

Quarterly

2-3 times a year

Once a year

Every other year

Other

Purpose of Travels

75%

17%

52%

4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Visit Family/ Friends

Business

Tourism/ Vacation

Other

Lifestyle

Frequency of Sexual Activity

8%

48%

1%10% 9% 7%

2%

16%

0%

10%20%

30%40%

50%

60%70%

80%90%

100%

Daily Weekly Bi-Weekly

Monthly Bi-Monthly

Rarely Other Never

Lifestyle

Cooking/ Eating at Home

12%

88%

No

Yes

Frequency of Dining Out

5%1% 2%

13%

45%

14%21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Every meal 1 meal aday

3-5 Timesa week

1-2 timesa week

Every otherweek

Rarely Do notdine out

Lifestyle

Top 5 Hobbies/ Actvities

25%

25%

27%

38%

62%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Gardening

Sewing/ Knitting

Games

Music

Reading

Lifestyle

Religious Affiliation

43%

8%

21%

0%

1%

3%

24%

0% 20% 40% 60% 80% 100%

None

Other

Buddhism

Taoism

Judaism

Christianity - Catholic

Christianity - Protestant

Shopping

Actions When Planning To Go Grocery/ Mall Shopping

10%11%12%

27%

63%

86%

0%10%20%30%40%50%60%70%80%90%

100%

Make a list of items topurchase

Check supply of goods Make a list of placesto go

Make arrangementsfor transportation

Make arrangementsfor someone to assistyou in your shopping

Get advice fromfamily or friends on

large purchases

Shopping

Use When Shopping

85%

37%

24%

15% 13%5%

0%10%20%30%40%50%60%70%80%90%

100%

Standard shoppingcart

Credit cards Self check-out/ scan Handicapped parkingspace

Standard shoppingbasket

Electric scooter

Shopping

Top Issues When Shopping

54%

17%

18%

20%

22%

27%

27%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Clutter

Difficulty with the width of the aisles

Hard to read labels

Hard to read price

Crowds

Hard to find items

Hard to reach items (too high or too low)

Shopping

Problems Experienced with Products/ Services

3%8%9%

23%

38%43%

0%10%20%30%40%50%60%70%80%90%

100%

Difficulty openingbottles/ cans

Difficulty openingpackaging

Small font/ hard toread

Difficulty readingnutrition labels

Difficultyunderstandingnutrition labels

Difficultyunderstanding

cooking instructions

Dining Out

Top Issues When Dining Out

11%

12%

13%

14%

23%

0% 5% 10% 15% 20% 25%

Hard to read menus

Poor service

Poor lighting

Poor seating while waiting for table/ booth

Noise levels are too high

FINANCE AND WILLS

Finance and Wills

Household Income

31%

15% 17% 17% 21%19%15%15%18%

33%

0%

10%

20%30%

40%

50%

60%

70%80%

90%

100%

<$20K $20K-$35K $35K-$50K $50K-$75K $75K+

Total Household income before taxes Most earned in any given year

Finance and Wills

Types of Financial Institutions

1%4%

22%32%28%

92%

23%

0%10%20%30%40%50%60%70%80%90%

100%

Accounting

Firm

Bank Credit Union Financial

Advisor/

Asset Mangt

Firm

Stock

Brokerage

None Other

Types of Financial Accounts Owned

2%

96%

41%

68%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

None Checking Retirement Savings Trust

Finance and Wills

Top 5 Investment Vehicles Used

64%

49%

44%

42%

36%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

CD

Mutual Funds

Stocks

IRA/ 401K

Savings Account

Finance and Wills

Direct Deposit

18%

82%

No

Yes

Internet for Banking

73%

23%

No

Yes

Investment Counselor

58%

42%

No

Yes

Finance and Wills

Primary Goal of Investments

1%

1%

5%

12%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Just a hobby

Extra money for entertainment

Other

Inheritance for children

Lifestyle Maintenance

Finance and Wills

Have A Will

16%

84%

No

Yes

Have A Living Will

27%

73%

No

Yes

Given Power of Attorney to Family Member

31%

69%

No

Yes

MEDIA / TECHNOLOGY

Media/Technology

Subscribe to a Newspaper

32%

68%

No

Yes

Listen to the Radio

30%

70%

No

Yes

Watch TV5%

95%

No

Yes

Subscribe to a Magazine

39%

61%

No

Yes

Media/Technology

Frequency of Newspaper

1%

48%

90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Daily Weekend Other

Type of Newspaper

4%

16%

90%

2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

National Regional Local Other

Media/Technology

How Often Listen to the Radio

9%

5%

22%

64%

0% 20% 40% 60% 80% 100%

Every day

3-4 times a week

Weekly

Rarely

Type of Radio

13%

36%

51%

AMFMBoth

Types of Radio Stations Listened To

77%

51%

17%10%

1%

0%

20%

40%

60%

80%

100%

Music Talk Religious Sports Other

Media/Technology

How Often Watch TV

1%2%4%

93%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Every day 3-4 times a week Weekly Rarely

Top 6 TV Stations Watched

37%

44%

68%

69%

74%

79%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

History Channel

CNN

FOX

CBS

NBC

ABC

Media/Technology

Top 6 Types of TV Programming Watched

27%

31%

44%

55%

56%

79%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Cooking

Sports

Drama

Movies

Documentary

News

Media/Technology

Device Usage

5%

7%

18%

8%

63%

48%

55%

68%

62%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Cell Phone

CD Player

Computer

Internet

DVD Player

MP3 Player

PDA

TiVo

None

What Internet Is Used For

50%

50%

63%

87%

10%

18%

29%

29%

31%

39%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100

%

Downloading Music

Other

Other types of research

News

Banking

Education on health related issues

Purchasing products or services

Research on health related issues

Research on products or services

E-mail/ Communication

QUESTIONS