Financial service preferences and patronage motives of older consumers

The 2000 US Census reported that nearly one in eight American is 65 years of age or older. This suggests that financial institutions in the US and in other developed countries have an excellent market opportunity if they stay abreast of the preferences of the elderly population. Responding to these changes involves an understanding of demographic trends and an understanding of the growing diversity within the older population. Using a national random survey of 1,727 adults, this paper explores a segmentation approach based on factors directly related to the older consumers' needs and lifestyles, which in turn are influenced by changing life conditions. The cluster analysis suggests four gerontographic segments that best describe the financial service preferences and motives of the mature consumer market. These segments are explained and managerial implications are highlighted.