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Keywords
Consumer choices and practices,
environmental vulnerability, vulnerability,
vulnerable consumers, vulnerability drivers,
older consumers.
Correspondence
Lisbet Berg, National Institute for Consumer
Research, P.O. Box 4682 Nydalen, N-0405
Oslo. E-mail: lisbet.berg@sifo.no
doi: 10.1111/ijcs.12182
Abstract
The aging population is an important consumer policy concern. And one relevant
question to ask is: are there reasons to worry about consumer vulnerability among older
people? The aim of the project was twofold: First, to gain insight into what makes people
vulnerable as consumers, more precisely to reveal significant vulnerability drivers.
Second, if possible, to distinguish particularly vulnerable consumer groups and their
needs for targeted consumer policy measures. The project builds on a qualitative pilot
study among older people, followed by a large nationally representative survey among
people living in Norway, between 18 and 95 years old. Based on the analysis of 2100
telephone interviews, this paper rejects our a priori assumption, that older people
constitutes a vulnerable consumer group. Although older people have several reduced
capabilities that could act as vulnerability drivers, older people appeared to be less likely
than other age groups to make unfortunate decisions in the markets. Older people also
show a much more environmentally friendly consumption pattern than younger
generations. The main individual vulnerability drivers appeared to be; poor economic
awareness and lack of time. The results also indicate that people who lack calculating
skills, as well as people living in households with scarce financial resources, are more
likely than others to make economically unfortunate consumer choices.
Introduction
In the years to come large demographic changes are expected
in Europe. During the next 50 years, driven by changes in birth
rates and longer life expectancies, the ratio between working
and nonworking citizens is expected to decrease from 4:1 to
2:1. According to the prognoses, the aging of Europe will be at
the strongest between 2015 and 2035 (Special Eurobarometer,
2012). One way to reduce societies increased expenditures
caused by an ageing population is to make it easier for older
people to manage their lives at home as long as possible. The
starting point of this article was that a prerequisite for achieving this goal is that older people are capable in their role as
consumers.
Vulnerability related to ageing has been approached in various ways. Papers have given attention to vulnerability related
to older peoples general living conditions, as well as to how
age related trigger events like retirement and disabilities affect
the welfare of older people (for a review see Zaidi, 2014). This
article, however, addresses a specific kind of vulnerability, that
is, vulnerability related to the consumer role.
This vulnerability is understood and operationalized as an
increased probability of making unfortunate consumer choices.
However, it is not obvious what kind of choices that should be
categorized as unfortunate. The actors in the markets have dif284
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Consumer vulnerability
H1:
H2:
H3:
ability
Theoretical framework
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L. Berg
Aging theories
Aging is an inevitable aspect of life, and important for peoples
positions in key social institutions like the family, the school,
the workplace, the community and in the welfare state (Daatland and Solem, 2011). Aging is expected to be accompanied
by changes in an individuals capabilities. On the one hand, we
expect older people to have accumulated age related disabilities
that could impede their consumer activities, and that they might
not have the same incentives as younger people to keep
updated on new products and markets. On the other hand, older
people have more experience than younger people at least on
some consumer matters and they probably have more available time for information retrieval before making their choices.
In the qualitative pilot among older people prior to this study
(Berg, 2013) one impression was that older people had little interest in the renewal of durable goods. One said, . . . I like my old
car, and I like my old trousers, I shall not buy anything! Few
informants had bought, and none of them mastered, the new
smartphones. A participant who had bought himself a smartphone
gave it to his grandchild after a few frustrating days saying that
his . . . fingers [were] too big! They continuously hit three letters
instead of one! Another participant who had a smartphone confessed he only used it to make calls and send SMS messages.
L. Berg
informants commented on the incredible transition from scarcity of almost everything when they were young to todays
almost unlimited assortment of products. Many expressed concern for the lifestyle and preferences of younger generations
who are growing up in todays affluent society. Independent of
class background, our informants opposed to what they considered to be squandering money, especially with regards to wasting food. As one said . . . Wasting food is lack of culture.
One strong assumption drawn from the pilot was that older
people were more conscious of prices and quality than younger
people. Some were ironic about their own frugality and thrift,
laughing over the fact that even with large savings in the bank,
and no heirs, they found it difficult to escape their economical
way of thinking and acting when, for example, choosing
foods. . . Cant help it, thats just how I am!.
Similarly, studies from Norway indicate that older generations,
although they are less interested and engaged in sustainable consumption campaigns, still show a much greener consumer pattern
than younger generations. Based on life course theories, one
explanation why older people show more modest consumption
patterns is that they grew up in a time period when it was important to economize and take care of the resources (St, 2008).
Elder (1999) suggested that historical, cultural and social situations at a young age had large effects on peoples attitudes
and preferences throughout their lives. After the Second World
War, Norway was a poor country with rationing and scarcity
but, with the discovery of North Sea oil, economic growth
started to accelerate in the 1970s. As a consequence, todays
older people have experienced large improvements in welfare
benefits during their life courses. They have witnessed how the
markets and the supply of consumer goods and services have
changed dramatically since they were young (Berg, 2013).
Methods
This projects research design consisted of an explorative qualitative pilot study (Berg, 2013), followed by a large quantitative
Consumer vulnerability
The pilot
The purpose of the qualitative introductory pilot was to uncover
mechanisms related to vulnerability among older people in their
role as consumers. In the selection of participants, we strived
to include singles and couples, women and men, from different
social strata. In the pilot, 18 participants 10 women and 8
men contributed with their reflections and lessons learned
from their long experiences as consumers. They appeared to be
unexpectedly resourceful and reflexive. Their stories challenged
our a priori assumptions, i.e. that older people were vulnerable
as consumers. However, due to the willingness to participate in
such interviews and self-selection mechanisms, it was possible
that they were more capable than average, and not representative of their age groups (Berg, 2013).
The survey
The aim of this survey was to test out and generalize the
hypotheses drawn from the pilot study, as well as to test the
assumptions underpinning this project. Based on the theoretically grounded model (Fig. 1), a questionnaire was constructed
containing questions about respondents practices, experiences
and evaluation of the food, electronics and banking markets in
addition to several questions about consumer relevant
capabilities.
To give special attention to older people, specific methodological approaches were required. First, our sample was
extended to include people older than the common age limit of
80 years thus covering a population between 18 and 100 years.
A precondition for participating in the survey was that the
respondents were living in their private homes (not in institutions). Second, to analyze older cohorts, older people were
oversampled. Third, to secure representativeness among the
older cohorts, a web-based survey was ruled out. Therefore,
this study is based on a telephone survey among people aged
18100 years, divided in seven age groups, each group containing 300 persons.
Stratified by geography and gender, the respondents were
drawn randomly from the telephone directory. To get nationally
representative results, the totals presented in this article are
weighted according to gender, age and geography. Results split
on age groups are weighted by gender within the age group.
When the text refers to a gender within an age group, the
results are not weighted. According to the sampling methods, it
is the age-variable that is manipulated the most by the weighting procedures, especially meaning that, in the nationally representative totals, the youngest age group (1830) is weighted
up, while the oldest age group (80100), is weighted down.
To analyze the material according to Fig. 1, three indices
were constructed; the capability index, the consumer vulnerability index and the environmental vulnerability index. In the
next section, the univariate distributions of the variables within
the indices are presented, before the model and hypotheses are
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Figure 2 Indicators for the reduced capability index. Percent affirmative answers. Weighted by age, gender and geography (N 5 2100). [Color figure
can be viewed in the online issue, which is available at wileyonlinelibrary.com.]
Results
The capability index
Based on 16 different individual capability indicators, covering
various kinds of resources expected to be important for consumer activity, we can draw the following picture of the lack
of capabilities among consumers in Norway.
The reduced capabilities listed in Fig. 2 can be organized
in the six following groups: Health capability difficulties
(reduced vision, allergies, disability, shopping centre anxiety)
that affect the consumer role were relatively widespread. The
most commonly reported capability problem appeared to be
reduced vision, and almost one in four reported that this
could complicate their consumer role performance. This
could mean that many people not only have problems reading
content lists, but also that their reduced vision can hinder the
comparison of prices. Twelve percent said that they have
allergies, over-sensitivity or health problems requiring special
diets. We should mention that young women under 30 were
heavily overrepresented in this group (21% compared with
6% men of the same age). Seven percent reported that they
were physically disabled, meaning that they have problems
moving around in ordinary shops, or getting to the shops.
Shopping centre anxiety also affects 7%, and according to
our material, men contrary to what we expected did not
diagnose themselves with shopping centre anxiety more often
than women.
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Consumer vulnerability
Figure 3 Indicators for the consumer vulnerability index and the environmental vulnerability index. Percent positive answers. Weighted by age,
gender and geography (N 5 2100).
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last months. Such practices are problematic from both consumer and environmental perspectives.
Although fewer than in the food market, but still 36% of
respondents, said they might pay too much for electronic products because they do not compare prices. One in four (25%)
admitted to have thrown usable electronics away during the last
two years, and 17% did not recycle their electronic products.
Norwegian consumer authorities have recommended consumers
to rely on Kjpsloven (Sale of Goods Act 01.07.2002) and not
to buy extended product guarantees. Still, 33% of respondents
said they had bought such guarantees during the last two years.
Despite the different characteristics of the food and electronics markets there is reason to believe that the food market contains more vulnerability drivers than the electronics market.
One explanation could be different price levels, and that consumers are more reflexive when searching for more expensive,
durable goods. With reservations, the banking market could
possibly be ranked between the two consumer goods markets
as 55% of the respondents said that they might pay more interest rates than necessary because they do not care to switch
bank or to renegotiate their conditions.
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Figure 4 clearly shows that capabilities are not evenly distributed in the population. As expected, the older one gets, the
more capabilities one lacks. All independent variables, except
gender, have their own significant effect on the number of
capabilities. As an example, while old, single people from the
working class lack many capabilities, young couples without
children from the middle class are rich in consumer
capabilities.
When we follow the path from number of lacking capabilities on the dependent variables, while controlling for the background variables, there is a weak significant (0.06) effect on
individual consumer vulnerability, and no effect at all on environmental vulnerability. This means that it is the direct paths
from the background variables that affect the vulnerability patterns the most.
The age variable shows the strongest direct effect on both
vulnerability variables. But contrary to the expectations underpinning this project, it is not the old, but primarily young consumers, who are more likely to experience consumer
vulnerability. In addition, according to our material, young people, male consumers and families with small children seem to
follow more environmentally hostile practices than others.
The results presented in Fig. 4 support the first two conditions of our first hypothesis, that (a) older people lack more
capabilities than others; and that (b) people who lack many
capabilities are more vulnerable as consumers than others.
However, our analysis rejects the idea that (c) older people are
more often exposed to consumer vulnerability than others. Our
expectation (if a and if b, then c) was rejected.
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Consumer vulnerability
master the consumer role. They are rich in time and, when they
were young and adaptive, this generation learned to be aware
of economic factors.
We should also note that poor calculating skills a third vulnerability driver is highly overrepresented in the youngest
age group. According to our data, young women are particularly overrepresented in this group (17% compared with 13%
of the young men). The last vulnerability driver, bad household
finances, is also more common for the youngest age group,
probably because many in this age group are students or in
poorly-paid employment.
On some of the capability indicators the variation by age is
quite large, especially on indicators that according to Fig. 5
should be considered as vulnerability inhibitors. Some 57% in
the oldest age group, compared with 3% in the 3050 age
group said they did not use internet banking. The same dramatic age differentiation can be seen among those who say
they lack digital equipment and do not have a computer, tablet
or smartphone.
The impression from Fig. 6 is that the bivariate distribution
supports the basic assumption that older people tend to lack more
capabilities than younger cohorts. The first eight capability variables listed from left to the right, illustrate a significant ageascending relationship. Among older respondents, the more frequent it is not to use internet banks; to lack digital equipment; to
suffer from reduced vision; to be disabled; to need practical help
for everyday purchases; to need practical help when paying bills;
to have a weak social network, and even though it does not
apply to many not to have their own bank card. In addition
except from the youngest age group the older they are, the more
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Figure 6 Reduced capabilities in different age groups. Percent affirmative answers. Weighted by gender within age groups (N 5 2100).
often people report having a very small financial buffer and could
not pay an unexpected bill of 60 euros.
The next four indicators poor calculating skills; need of special foods; poor reading/speaking ability and shopping centre anxiety, show weak or inconsistent age differentiation. The last three
capability-indicators poor economic awareness; lack of time
and bad household finances, show significant an age-descending
relationship: Here, the younger the respondent, the more probable
it is that they report a lack of these capabilities. One should notice
that compared with the small financial buffer variable, bad
household finances shows the opposite pattern. In other words,
very few older people, compared with their buffer sizes, consider
their household financial situation as bad. Perhaps this is a
reflection of the generational effect discussed earlier.
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imply that older people master every consumer market, electronics products for example, or that older people should not be
considered vulnerable in other aspects of their lives. Nor can
we say that all older people are consumers empowered with
time, economic awareness and financial capability.
Implications
These results give reasons for concern about the way that older
people are lagging behind in the rapid digital evolution of consumer markets. New digital equipment and purchasing channels
are to a very limited degree utilized by older people. There is
reason to believe that the digital evolution will continue and
that this pattern of digital deficit will be repeated by future
generations of older people.
However, these results first of all support the argument for
public investment to improve mathematical education, as well
as to improve young peoples financial capabilities (see, for
example, CFEE 2014) and their household knowledge. One
measure could be the strengthening of personal finance and
home economics as obligatory courses in high school.
Acknowledgements
A consortium of representatives from the Ministry of Children,
Equality and Social Inclusion, the Consumer Ombudsman, the
Norwegian Consumer Council, and National Institute for Consumer Research in Oslo has contributed with their insights and
critics in this project. A prior version was presented and discussed
at the International Conference on Consumer Research: Challenges on Consumer Research and Consumer Policy in Europe,
September 2014 in Bonn, Germany. I would also like to thank
my editor and my two anonymous referees for all comments and
language corrections that substantially improved this article.
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