Seeking Profits by Enhancing Older Consumer Well-Being

Concept of Well-Being

  • Multidisciplinary construct; terms “well-being,” “quality of life (QOL),” and “life satisfaction (SWL)” used interchangeably.
    • Psychology: Erikson’s 8th stage (Integrity vs. Despair); focus on retrospective life evaluation.
    • Sociology: Happiness (emotional, volatile) vs. Life-Satisfaction (cognitive, stable).
    • Gerontology: Successful Aging Perspective (SAP) by Rowe & Kahn—3 overlapping pillars
    • Low probability of disease/disability
    • High cognitive & physical function
    • Active engagement with life (relationships & productivity)
  • Critiques & evolution
    • >100 revisions of SAP; integrated into Life-Course Paradigm (LCP) → earlier-life activities shape later well-being.
    • Sreenivasan & Weinberger (2021): principles for older life enhance well-being across entire life course.
  • Objective vs. Subjective Well-Being
    • Objective: observable conditions (income, health metrics, social ties).
    • Subjective: personal perception of those conditions.
    • Optimal aging requires high levels of both.

Domains of Well-Being

  • Health
    • Physical: chronic ailments (arthritis, hearing loss) erode independence; \;2/3 Boomers & \;3/4 parents fear impairment (CMCS).
    • Mental: Stress taxes immune system; linked to 60{-}90\% of physician visits; depression → highest suicide rates in older adults.
  • Finances
    • Adequacy minimizes fear of burden, enables desired activities, increases personal control, and removes money-related stress.
    • John Hancock 2021: \approx75\% Americans moderately/extremely stressed; finances major culprit.
  • Attitudes & Emotions
    • High self-esteem & optimism relate to better health; optimists feel more control & adopt health-promoting behaviors (Mathur & Moschis 2021).
  • Lifestyle
    • Busy, socially engaged roles → purpose, accomplishment, cognitive stimulation, social support.
    • Multiple non-obligatory roles correlate with better health (info access & support buffering).
  • Consumption
    • Daily product/service performance shapes mood; failures create frustration & stress.
    • Dark-side behaviors: compulsive, impulsive, excessive buying—statistically higher among Boomers vs. older cohort:
    • e.g. Boomers 3× more likely to incur major credit-card debt (37 vs 12%).
    • Responsible & mindful consumption (budgeting, sustainable choices) enhances QOL (Haider et al. 2022).
  • Information & Technology (ICT)
    • Mobile, tablets, PCs facilitate independence, reduce loneliness, enable e-commerce & tele-health.
    • Barriers: credibility of info, usability; digital use can also harm (privacy loss, addiction) → nuanced impact on happiness (UN 2019 Report).

Life-Stage Specificity

  • Life course stages: Childhood → Adolescence → Early Adulthood → Mid-life → Old Age → (proposed) End-of-Life.
  • Determinants & tasks vary by stage (e.g., estate planning relevant only at end-of-life).
  • Smooth transition requires early resource development (health, finances, skills).

Longevity & Quality of Life (QOL)

  • Key definitions
    • Life Span: max human age \approx120\text{ years}.
    • Life Expectancy (US): \approx79\text{ years}; women +3, men −3.
    • Functional Age: physiological capacity; better predictor of QOL than chronological age.
  • Implications
    1. Redefine life stages & marketing segments using functional age & rising life expectancy.
    2. Prioritize QOL over age number in product/service design.
    3. Emphasize individual control—lifestyle > heredity.
  • Two overarching proactive strategies
    1. Decrease risks & reverse aging (health behaviors, safety, stress management).
    2. Build resources (financial, social, cognitive) for current & future stages.

Prescriptions for Longer & Happier Life

Physical & Mental Health

  • Regular, moderate, holistic exercise can deter and even reverse aging (Tufts nursing-home weight-training study; marathoners in 80s).
  • Diet programs should aim at nutrition, not just aesthetics.
  • Mental practices: meditation/relaxation help, but problem-solving & stress-elimination more effective.
  • Age-Belief Intervention (Levy 2022): Positive age stereotypes ↑ activity & resilience; adds 7.5\text{ years} to life expectancy.

Financial Solvency

  • Responsible behaviors: saving, budgeting, retirement planning; avoid compulsive materialism.
  • Financial literacy gaps:
    • John Hancock: only 36\% Boomers seek professional advice.
    • Fidelity 2020: 72\% misjudge market history; underestimate healthcare costs.
  • Life-course financial socialization (Gudmunson & Danes 2011): stage-specific education (401k, mortgages, LTC).

Positive Attitude

  • Tactics to raise self-esteem:
    • Engage in aptitude-aligned activities.
    • Seek affirming social circles.
    • Reframe comparisons; value diverse success metrics.
    • Practice gratitude for education, freedom, health, etc.

Active Lifestyle & ICT Engagement

  • Broad calendars (roles: volunteer, student, caregiver) → cognitive/physical maintenance.
  • Tech mastery boosts control & connectivity; combats loneliness (HRSA 2019).

Mindful Consumption

  • Make informed purchases; understand product use; moderate consumption; prioritize financial planning; avoid ‘dark-side’ habits.

Role of Businesses in Enhancing Consumer Well-Being

  • Traditional research → short-term satisfaction; Transformative Service Research (TSR) targets long-term welfare.
  • Firms must learn well-being determinants across life stages & embed them in strategy.
  • Two strategic categories (Moschis & Pettigrew 2011)
    1. Promote behaviors that increase QOL (preventive health, financial buildup, education, active hobbies).
    2. Help consumers avoid behaviors that impede QOL (compulsive buying, deception, caregiver unpreparedness).

Business Strategies & Recommendations

Helping Consumers Live Longer

  • Market preventive health: normalize exercise like eating/working.
  • Provide disease-pattern info, personalized checklists, regular reminders (insurance/pharma portals).
  • Support emotional health: service providers trained to recognize stress/loneliness; promote stress-relieving products (herbal teas, vacations).
  • Educate coping skills: plan ahead, rehearse worst-case, cognitive reframing, pet therapy.

Improving Financial Well-Being

  • Challenge outdated age-based investment rules; account for individual longevity prospects.
  • CMCS study: heavy use of conservative instruments → lowest financial satisfaction; moderate stock exposure correlated with higher satisfaction.
  • Advisors should factor health status, genetics, goals; provide stage-specific literacy resources; reduce finance-related stress.

Creating Positive Images of Older Persons

  • Avoid negative stereotypes in ads; portray competence, wisdom, creativity.
  • Positive messaging enhances older consumers’ self-perception → greater brand connection & well-being.

Promoting Active Lifestyles

  • Highlight benefits: up to 10\text{ year} lifespan extension; disability period reduced from 6\text{ years} (active) to 0.25\text{ years} (lifelong exercisers).
  • Encourage volunteering, hobbies immune to aging, cognitive games, skill classes.
  • Provide market information to protect against fraud & enhance decision confidence.

Ethical, Philosophical & Practical Implications

  • Ethical marketing: support consumer autonomy, health, and long-term welfare.
  • Philosophically aligns with stakeholder theory—profit via societal value creation.
  • Practical payoff: older consumers show strong brand loyalty; enhancing their longevity & happiness enlarges lifetime customer value.

Summary & Key Takeaways

  • Well-being is multidimensional, combining objective & subjective factors varying by life stage.
  • Core domains: Health, Finances, Attitude, Lifestyle, Consumption, ICT.
  • Longevity & QOL are heavily influenced by controllable behaviors; business can facilitate positive change through TSR.
  • Effective strategies include preventive health promotion, financial education, positive age imagery, and infrastructure for active, mindful living.
  • Profit and consumer welfare are not mutually exclusive; aligning offerings with life-course well-being drivers yields mutual gains.