Featured Research

from universities, journals, and other organizations

Technology marketers should take consumer life-cycle into account, new study shows

Date:
May 28, 2014
Source:
University of Toronto, Rotman School of Management
Summary:
Marketers should pay attention to where consumers are in their lifecycles when determining how to get them to adopt new technologies. Marketers may have incorrectly assumed that older consumers avoid products such as debit or credit cards because they are technophobic or find them hard to learn. Instead, the paper suggests, these consumers may simply see limited future benefits to changing their current habits because of their shorter remaining lifespans.

If you want grandpa to start using the bank machine instead of standing in line for the teller, the best way to do it is to tell him to "Act now!" with a limited time offer for a banking card, shows new research.

A new study from the University of Toronto's Rotman School of Management suggests marketers should pay attention to where consumers are in their lifecycles when determining how to get them to adopt new technologies.

Marketers may have incorrectly assumed that older consumers avoid products such as debit or credit cards because they are technophobic or find them hard to learn. Instead, the paper suggests, these consumers may simply see limited future benefits to changing their current habits because of their shorter remaining lifespans.

The way to get around that, found the study, is to present a limited time sign-up bonus targeted to older adults. And, it found, not making the offer permanent means slightly younger adults won't put off their own adoption decisions until they're old enough to get the seniors' discount.

Taking the consumer life-cycle into account, "can really change the story," said Andrew Ching, an associate professor of marketing at Rotman. He co-wrote the paper with former PhD student Botao Yang, now an assistant professor of marketing at the University of Southern California.

"When you don't take the life-cycle effect into account we see that, just like what other people think, the older you get, the costs of adopting a new technology are going to increase," said Prof. Ching. "But when you take life-cycle into account, the costs become more or less the same with age."

Researchers used data about Italian banking customers' banking card adoption decisions and usage patterns. They applied that information to a theoretical model to assess the costs and benefits of those decisions for different age groups of consumers.

The model found that the total adoption costs to older consumers are actually lower than might be expected, because of their shorter remaining lifespans. Seniors did face more psychological hurdles but those challenges are not as significant as has previously been believed.

The study was recently published in Management Science.


Story Source:

The above story is based on materials provided by University of Toronto, Rotman School of Management. Note: Materials may be edited for content and length.


Journal Reference:

  1. Botao Yang, Andrew T. Ching. Dynamics of Consumer Adoption of Financial Innovation: The Case of ATM Cards. Management Science, 2014; 60 (4): 903 DOI: 10.1287/mnsc.2013.1792

Cite This Page:

University of Toronto, Rotman School of Management. "Technology marketers should take consumer life-cycle into account, new study shows." ScienceDaily. ScienceDaily, 28 May 2014. <www.sciencedaily.com/releases/2014/05/140528114831.htm>.
University of Toronto, Rotman School of Management. (2014, May 28). Technology marketers should take consumer life-cycle into account, new study shows. ScienceDaily. Retrieved August 20, 2014 from www.sciencedaily.com/releases/2014/05/140528114831.htm
University of Toronto, Rotman School of Management. "Technology marketers should take consumer life-cycle into account, new study shows." ScienceDaily. www.sciencedaily.com/releases/2014/05/140528114831.htm (accessed August 20, 2014).

Share This




More Mind & Brain News

Wednesday, August 20, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Do More Wedding Guests Make A Happier Marriage?

Do More Wedding Guests Make A Happier Marriage?

Newsy (Aug. 20, 2014) — A new study found couples who had at least 150 guests at their weddings were more likely to report being happy in their marriages. Video provided by Newsy
Powered by NewsLook.com
Charter Schools Alter Post-Katrina Landscape

Charter Schools Alter Post-Katrina Landscape

AP (Aug. 20, 2014) — Nine years after Hurricane Katrina, charter schools are the new reality of public education in New Orleans. The state of Louisiana took over most of the city's public schools after the killer storm in 2005. (Aug. 20) Video provided by AP
Powered by NewsLook.com
Researcher Testing on-Field Concussion Scanners

Researcher Testing on-Field Concussion Scanners

AP (Aug. 19, 2014) — Four Texas high school football programs are trying out an experimental system designed to diagnose concussions on the field. The technology is in response to growing concern over head trauma in America's most watched sport. (Aug. 19) Video provided by AP
Powered by NewsLook.com
Kids' Drawings At Age 4 Linked To Intelligence At Age 14

Kids' Drawings At Age 4 Linked To Intelligence At Age 14

Newsy (Aug. 19, 2014) — A study by King's College London says there's a link between how well kids draw at age 4 and how intelligent they are later in life. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins