Vision - March 2009 - (Page 27) CEAnewsline CE—Not Just for the Young By Tara Hutton S eniors. Boomers. Silvers. Older Americans. These are all names used to describe a segment of the population in the later years of their lives. This population is sizable both in number and income, making them an important market segment for any industry, including consumer technology. According to the U.S. Census Bureau, the number of U.S. consumers ages 50 and over will increase from 94 million in 2008 to an estimated 119 million in 2020, a 26 percent increase. It is projected that by 2020 they will make up over a third of the entire U.S. population. Further, consumers ages 45–64 have a mean income 26 percent higher than that of the overall population (ages 15 and older). This market segment should not be ignored, especially when it comes to technology. While in some respects they are no different from their younger counterparts, they will have unique demands on technology products due to their lifestyle and physical abilities. For most products, ownership follows a similar pattern CE Products Used in the Past Week For most products, ownership follows a similar pattern Cell Phone 87% 90% 85% 80% 67% 62% 54% 47% 38% 31% 40% 31% 19% 11% 7% CE Products Used in the Past Week Laptop PC MP3 Player Source: CEA Market Research Feature Creep, a Leading Cause of Frustration Reasons consumers give for why CE products frustrate them Too Many Features 57% 64% Feature Creep, a Leading Cause of Frustration Reasons consumers give for why CE products frustrate them Confusing Terminology 52% 43% Buttons Too Small 35% 34% 35% 32% 43% 30% 29% 19% How Extensive is Technology Usage Among Older Americans? According to the recent study, “Greying 18–34 35–49 50’s 60’s 18–34 35–49 50’s 60’s 18–34 35–49 50’s 60’s Gadgets: How Older Americans Shop Source: CEA Market Research for and Use Consumer Electronics” conducted jointly by CEA and TNS Compete, at least once in the past few years. In fact, those in the 50-something, 60-something some retirement centers have even formed and 70-something age segments use many Wii bowling leagues. technologies at or near comparable rates as Older Americans also exhibit strong Interthose of younger age segments. For exam- net usage habits. Seventy-one percent of ple, 80 percent of 60-somethings used a 60-somethings and 52 percent of 70-somecell phone in the past week, nearly equal to things report having used a search engine the usage rates of 18–34 year olds. in the past week, compared to 77 percent of Not all technologies have comparable 18–34 year olds. What are they searching for usage rates among age groups though. online? Nearly half (47 percent) of 60-someFor example, younger demographics are things have used the Internet to research a much more likely to play video games and medical issue/condition in the past month, use portable MP3 players. However, this while 58 percent have researched a hobby. does not mean older age segments should be ruled out as a market opportunity. For Are They Comfortable with Technology? example, looking specifically at gaming, 55 Today’s technologies are undoubtedly percent of 50-somethings and 36 percent becoming more complex, with products of 60-somethings have played video games being released with more features every year. www.ce.org These feature-rich products are meant to add value, but could they potentially deter older Americans from adopting them? While 24 percent of 18–49 year olds feel technology often frustrates them, this sentiment increases with age. Thirtythree percent of 50-somethings, 37 percent of 60-somethings and 45 percent of 70-somethings often are frustrated by technology. So, what specifically discourages them? The top reason is too many features. Sixty percent of older Americans (ages 50+) frustrated by technology indicated that a product having too many features was a main reason. This statistic points to an opportunity for companies to find better ways to address the technology needs of older Americans. Many companies already have introduced technologies into the marketplace designed specifically for older people. Many of these were showcased at the recent Silvers Summit held during the 2009 International CES. The focus was on products and services dedicated to keeping aging consumers engaged, entertained and healthy. Products designed with older Americans in mind include the Jitterbug® and ClarityLife® C900™ cell phones, which are simple to operate, have larger buttons, enhanced volume and other features desired by older Americans. Aside from product design, software such as Dakim’s BrainFitness® and updated versions of classic games such as Scrabble® and Trivial Pursuit® promise to keep aging consumers’ minds in top shape. Rest assured, Americans will continue to use technologies as they age. More than half of older Americans (ages 50+) readily agree technology will help them lead a fuller life. With technologies designed to entertain, learn, shop, communicate and even monitor health, the benefits are numerous. Technology companies can achieve success among this special segment of the market if they are mindful of its unique requirements. • March/April 2009 's 's 's 's 50 's 's 's –3 –3 –3 –4 –4 –4 's 60 50 50 18 60 70 18 60 70 18 35 35 35 70 's 4 4 4 9 9 9 27 http://www.ce.org
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