The Silver Market Phenomenon (eBook)

Preface and Introduction 6
Structure of the Book: Overview 9
Structure of the Book: Detailed Overview 9
Part I: Innovation, Design and Product Development for the Silver Market 9
Part II: Marketing for the Silver Market 13
Part III: Industry Challenges and Solutions 16
Lessons Learned and the Challenges and Opportunities Ahead 21
Lessons Learned 21
Challenges Ahead 22
Opportunities Ahead 23
References 23
From the World Demographic and Ageing (WDA) Forum 24
Contents 28
Contributors 32
Part I Innovation, Design and Product Development for the Silver Market 36
Chapter 1: Product Development for the Silver Market 37
Introduction 37
Competing in the Silver Market 38
Strategies of Market Development 38
The Need for Autonomy 38
Product Design for Autonomy 41
Need-Driven Versus Age-Specific 43
Summary and Conclusion 45
References 46
Chapter 2: Silver Age Innovators: A New Approach to Old Users 48
Introduction 48
Old People and Innovations 49
Users with Active Needs in the PLUS Furniture Project 51
Expressed Demands To Be Designed 51
Users with Not Yet Activated Needs Looking for Support 52
Demands To Be Realized 53
Missing Markets 53
Users with Latent Needs 54
Evolutionary Innovations 55
Three Types of Needs 56
Summary and Conclusions 58
References 58
Chapter 3: Disabled Persons as Lead Users for Silver Market Customers 60
Introduction 60
User-Centered Design and Lead Users 61
Disabled Persons as Lead Users in Mobile Phone Design 64
User Needs of Disabled Users Versus Ordinary Users 65
Leading-Edge Behavior of Disabled Users 68
Critical Attributes for Visually Impaired Users 70
Critical Attributes for Hearing-Impaired Users 71
Summary and Conclusion 71
Appendix: Overview of the Study 73
Photo-Diary 74
Contextual Inquiry and Open-Ended Discussion 75
References 76
Chapter 4: Integration of the Elderly into the Design Process 78
Introduction 78
How the Discipline of Design Views Itself Within the sentha Project 80
Senior-Friendly Product Design: Going Beyond Stigmatizing Aids 80
Design as an Empirical-Experimental Process 82
Participatory Observation 83
The Dialog: Participative Principle of Our Research 84
Empathy: The Foundation for the Designs in the Sense of the Later User 87
Interdisciplinarity: Stimuli Through the Disciplines Involved in the Research Project 87
Product Development 89
Summary and Conclusion 94
References 95
Chapter 5: Leveraging Disruptive Innovations for the Silver Market 97
Introduction 97
Disruptive Innovations 98
Disruptive Innovations for the Silver Market 101
Low-End Disruption 101
New-Market Disruption 102
Dual-Focus Disruption 103
Examples/Cases 103
Summary and Conclusion 106
References 108
Chapter 6: Gerontechnology for a Super-Aged Society 110
Introduction 110
What Is Gerontechnology? 111
Age-Related Decline 112
Gerontechnology for Home Appliances 113
Gerontechnology for ICT Products 114
Existing Products Aimed at the Elderly in Japan 116
Do Older Adults Really Need ``Elderly-Aimed´´ Products? 116
Needs of Older Adults Identified Through Trial Use of Products 117
Summary and Conclusion 119
References 120
Chapter 7: Designing for Everyone, One Person at a Time 121
Introduction 121
Ability, Not Age 123
Design Is About the Experience, Not the Object 123
Real People 125
Empathic Modeling 128
Discussion 129
Summary and Conclusion 129
References 130
Chapter 8: Universal Design: Innovations for All Ages 131
Introduction 131
The Potential of Universal Design 134
Implementing Universal Design Within the Corporation 137
Define a Suitable Strategy 137
Establish Adequate Processes 139
Design the Products Right 142
Market the Products Appropriately 142
Summary and Conclusion 144
References 146
Chapter 9: Transgenerational Design: A Heart Transplant for Housing 147
Introduction 147
An Emerging Design Challenge 148
Why Transgenerational Design 149
A Matter of Terminology 149
The Transgenerational Paradigm 151
The Transgenerational House: A Case Study 152
Project Goals 152
The Design Program 152
The Site 153
The Plan 154
Green Design 154
Tour the Transgenerational House 155
Zone A 156
Zone B 157
Zone C 158
Zone D 159
Summary and Conclusion 160
References 160
Chapter 10: Service Innovation: Towards Designing New Business Models for Aging Societies 162
Introduction 162
Aging Societies and Business Issues 163
Why Service Innovation in Japan Matters 164
Service Economies 164
Aging Markets Worldwide 165
Service Innovation 165
Innovation 165
Services 166
Changing Business Models with Service Innovations 167
Designing and Implementing Service Innovation 168
Seven-Eleven Japan 168
Yamato Transport´s Takkyubin 170
Seven Meal Service 171
Summary and Conclusion 173
References 174
Part II Marketing for the Silver Market 176
Chapter 11: Current Strategies in the Retail Industry for Best-Agers 177
The Retail Trade in the Face of Demographic Change 177
Effects on Location and Types of Business 178
The Consequences for Assortment Structuring and Packaging Design 181
Implementation and Trends 184
Summary and Conclusion 186
References 186
Chapter 12: Silver Pricing: Satisfying Needs Is Not Enough - Balancing Value Delivery and Value Extraction Is Key 188
Introduction 188
Japan´s Silver Market: At First Glance, a Highly Attractive Opportunity 188
It´s Worth a Second Glance: Value Delivery and Value Extraction 191
Understanding Willingness to Pay: The Key to Smart Profit Growth in the Silver Market 192
Price Is the Primary Profit Driver 194
Pricing Process 196
Pricing Strategy 197
Price Analysis 197
Price Decision 197
Price Implementation 198
Monitoring 199
Summary and Conclusion 199
References 200
Chapter 13: Changing Consumer Values and Behavior in Japan: Adaptation of Keio Department Store, Shinjuku 201
Introduction 201
Mechanism and Factors in Changing Values and Lifestyle 202
Transition of Department Stores and the Retail Sector in Japan 203
Early Stage of Department Store Development 204
Dynamic Change in Retail Formats with Economic Growth 204
Falling into Functional Insufficiency 205
Changing Consumer Values and Behavior 206
Case Study: Keio Department Store, Shinjuku 208
Subdividing Senior Customers into Even Smaller Categories 209
Subdivision of Customer Category 210
Targeted Categories and Women´s Apparel Floor Layout: The Second, Third, and Fourth Floors 210
Selections 210
For Quality Communications and Accurate Marketing 212
After Being Dragged into an Economic Recession 213
Discussion 215
Summary and Conclusion 216
Appendix 217
References 218
Chapter 14: Bargain Hunting Belongers and Positive Pioneers: Key Silver Market Segments in the UK 220
Introduction 220
Silver Market Segmentation 221
Positive Pioneers (30%) 222
Bargain Hunting Belongers (38%) 222
Benefits of the Model 223
Managerial Implications and Applications 224
Summary and Conclusion 225
References 226
Chapter 15: Grey Power: Developing Older Customer Strategies 227
Introduction 227
Older Workers 228
Older Workers as Older Customers 230
Internalistic Versus Externalistic Older Customers 232
The Older Customer Challenge 234
Older Customers in Context 235
The Future Household 235
The Intergenerational Agenda: From Savers to Spenders to Debtors 237
Summary and Conclusion 238
References 239
Chapter 16: Catering to Older Consumers´ Customer Service Needs 241
Introduction 241
Functional Changes 242
Social Changes 242
Understanding the Older Consumer 243
Age-Friendly Service Providers 244
Supermarkets 245
Financial Planners 246
Health Sector 247
General Practitioners 248
Hospitals 249
Implications for Service Delivery 250
Summary and Conclusion 251
References 251
Chapter 17: Business Strategies for Enhancing Quality of Life in the Later Years 253
Introduction 253
Factors that Enhance Well-Being in Later Life 254
Choices Affecting Physical and Emotional Health 254
Financial Assets 255
Discretionary Consumption Activities 256
Access to Information 257
How Businesses Can Enhance Consumer Well-Being 257
Helping Younger Customers Prepare for Later Life 258
Enhancing Older Consumers´ Quality of Life 259
Summary and Conclusion 260
References 261
Chapter 18: Silver Advertising: Older People in Japanese TV Ads 262
Introduction 262
The Representation of Older People 263
Male Versus Female Ratio 264
The Role of Older People 265
Product Categories 265
Opinions About Older People in TV Ads 266
Discussion 267
Summary and Conclusion 268
Appendix 269
Content Analysis of TV Commercials 269
Consumer Survey 269
References 270
Chapter 19: Advertising Agencies: The Most Calcified Part of the Process 271
Introduction 271
A Very Brief History of Advertising Creatives in the United States 272
Advertising Today: Is It Only the Experienced, Older Creatives that Agencies Need to Bring into the Fold? 277
Three Successful Campaigns, And A Possible Backlash 279
Boomer Brains 283
Summary and Conclusion 283
References 284
Chapter 20: The Importance of Web 2.0 to the 50-Plus 285
Introduction 285
What Is Web 2.0? 286
The Differences Between Web 1.0 and Web 2.0 286
Is Web 2.0 Age-Neutral? 286
Social Networking 289
How Is Social Networking Likely To Develop? 292
Web Video 293
Why the Rules of Web Video Have Changed 293
Web Video Is Age-Neutral 294
The Challenges of Web Video for Organizations 295
How Is Web Video Likely To Develop? 295
Summary and Conclusion 296
References 297
Part III Industry Challenges and Solutions 298
Chapter 21: The Business of Aging: Ten Successful Strategies for a Diverse Market 299
Introduction 299
Strategy 1: Become a ``Finder of FUDI´´ (Feelings of Uneasiness, Dissatisfaction, Inconvenience): New FUDI Can Be Found With Sa 303
Strategy 2: Become a ``Need-Focused Merchandiser´´: The Ways of Service Will Shift from Selling Products to Solving Problems 305
Strategy 3: Become a ``Aging-Friendly Stylist´´: The Priority of the Product Will Shift from Function-Oriented to Style-Oriente 305
Strategy 4: Become a ``Refuge Temple´´ at the Customer´s Home: The Place for Providing Services Will Shift from the Shop to the 306
Strategy 5: Become a ``Private Concierge´´: Use High-Tech to Enable ``Mass Customization´´ and Maintain High Quality 307
Strategy 6: Create a ``Third Place´´ for Retirees, a Replacement for the Workplace: The Number of Retirees Who Have No Places T 308
Strategy 7: Arrange ``Intellectual Camp Experiences´´ in Your Services: ``Experience-Learning´´ Will Be More Appealing for Life 309
Strategy 8: Become a ``Knowledge Net Worker´´: ``Nanocorps,´´ Own-Sized Mini-Companies Will Increase and Need Sales Support 310
Strategy 9: Use ``Intellectual Tie´´ as the Appeal of the Service: Intellectual Stimulation Creates the Chemical Reaction and t 311
Strategy 10: Focus on ``Loose-Tie-Big-Family´´: The Border Between Individuals and Groups Will Become Blurred 312
Summary and Conclusion 314
References 314
Chapter 22: The Age-Neutral Customer Journey 315
Introduction 315
The Options for Business 316
Option 1. Develop New Products and Services To Meet the Needs of an Older Customer 316
Option 2. Adapt Existing Products and Services To Meet the Changing Needs of an Older Customer 316
The Principles of an Age-Neutral Business 317
Aging Consumers - Psychology + Physiology 317
The Customer Journey 319
The Effects of Aging 320
Measuring and Monitoring Age-Neutrality 321
Case Studies 322
Case 1: Hotel 322
Lessons Learned 324
Case 2: Home Cordless Phone 324
Lessons Learned 325
Case 3: Toothbrush 326
Lessons Learned 327
Summary and Conclusion 327
References 328
Chapter 23: The Discovery and Development of the Silver Market in Germany 329
Introduction 329
Demographic Change 330
Income and Consumption of Older People in Germany 331
Income Situation of Older People 332
Consumer and Savings Behaviour of Older People 332
The Silver Economy in Germany 333
Why Is the Silver Economy Important as a New Socio-economic and Politico-economic Field of Activity? 333
Which Areas Comprise the Silver Economy? 335
Activity Field: Tourism 335
Activity Field: Living 337
Excursus: Computer-Aided Independent Living as a Central Future Field of the Silver Economy in Germany 339
Activity Field: Financial Services 340
Summary and Conclusion 342
References 343
Chapter 24: Japan´s Population Aging and Silver Industries 345
Introduction 345
Seniors as Consumers 347
Emerging Silver Industries 348
Housing and Real Estate 348
Food and Food Safety 349
Pets 350
Robotics 351
Senior Care Appliances 352
Funerals 353
Summary and Conclusion 354
References 355
Chapter 25: India: Opportunities and Challenges of Demographic Transition 358
Introduction 358
The Indian Context 360
Demographic Analysis 363
Market Planning 363
Marketing Implications of Demographic Change 364
New Product and Service Development 364
Repositioning and Branding Strategies 366
Summary and Conclusion 367
References 368
Chapter 26: Silver Markets and Business Customers: Opportunities for Industrial Markets? 371
Introduction 371
B2B Business with Products Supporting Employees in Older Age Groups 374
Components for Products That are Sold to Customers: Where These Customers Use, Package, or Otherwise Resell These Products Ulti 374
Products for the Health Care and Elderly Care Market 375
Preventive Medicine 376
Personalized Medicine 376
B2B Products for Helping Companies Cope with Demographic Change 378
Prevention of the Loss of Skills from Retiring Workers 378
Accommodations for Older Workers 380
Working Environment 380
Survival Strategies for Business Operations with Fewer Workers 384
Summary and Conclusion 386
References 387
Chapter 27: Business Opportunities in Personal Transportation: Traffic Safety for Older Adults 389
Introduction 389
Transportation System for Older Adults 390
Assistive Technology for Drivers 391
Electric Wheelchairs 391
Public Transportation 391
Consideration of Transportation Systems for Older Adults 391
Pedestrian Safety 392
Assistive Technology for Older Pedestrians 392
Training System Using Virtual Reality 393
Advantages of Using VR Technology 393
Human Factor of Older Pedestrians 394
Consideration of Strategy of Pedestrian Safety 397
Business Opportunities in the Future Technology 397
Summary and Conclusion 397
References 398
Chapter 28: In-Vehicle Telematic Systems and the Older Driver 400
Introduction 400
The Aging Driver Population 400
The Changing Car 401
Why Are Older Drivers Special? 402
Designing Telematics for Older Drivers 404
The Importance of Long-Term Evaluation 404
User-Centered Design 405
Considering Older Drivers´ Sensory Capabilities 405
The Promise of Telematics for Older Drivers 406
Summary and Conclusion 408
References 409
Chapter 29: The Golden Opportunity of Silver Marketing: The Case of Housing and Financial Services 411
Introduction 412
Financial Services in Japan: Rethinking Customer Needs 413
Marketing Real Estate to Older Consumers 417
Summary and Conclusion 421
References 422
Chapter 30: The End of Mass Media: Aging and the US Newspaper Industry 424
Introduction 424
The US Boomer Market 425
The Fragmenting Media Audience 427
Impact on the Industry 428
Future of Print Journalism 430
Summary and Conclusion 431
References 431
Chapter 31: Material Innovation in the Japanese Silver Market 433
Introduction 433
Market and Product 435
Market 435
Product 436
History of SAP and the Development of Disposable Diapers 437
Background of the Development of AQUALIC CA 438
Development of Sodium Polyacrylate 438
Development of Polymer for Sanitary Napkins 439
Development Process of AQUALIC CA 440
Invention of a New Manufacturing Method 440
Development Cancellation Crisis and an Opportunity for a Large Contract 442
Risks Involved in the Massive Supply Agreement 443
First-Mover Advantage by Developing Evaluation Technologies 444
Becoming the De Facto Standard 446
Summary and Conclusion 447
References 448
Chapter 32: Effective Gerontechnology Use in Elderly Care Work: From Potholes to Innovation Opportunities 449
Introduction 449
Results of Empirical Research on the Use of Safety Alarms 452
Organizational Issues 452
Trust, Skills and Motivation 453
Services Rendered 454
Discussion: How to Avoid Potholes? 454
New Individual Competence Requirements 454
Strength of Orientation 455
Importance of Impact Assessment 456
Other Factors 457
Technology Use: Like Assembling a Mosaic 458
From Potholes to Innovation Opportunities 459
Summary and Conclusion 460
Appendix: Methodology 461
References 462
Chapter 33: Senior Educational Programs to Compensate for Future Student Decline in German Universities 464
Introduction 464
The Third Age 466
Universities of the Third Age 467
Historical Survey 467
Case Box1 468
Senior Educational Services in Germany 469
Case Box2: UTA at the University in Cottbus 471
Strategies to Enlarge the Benefit for German Universities 472
Summary and Conclusion 474
References 475