Seniors and Information Technology: Are We Shrinking The Digital Divide?

ABSTRACT The "digital divide" has been present in the field of information technology (IT) since the inception of the digital computer. Throughout the course of history, one group (or more) has had better access to computer and information technology than another faction. For example: rich versus poor, young versus old, advanced societies versus less developed countries, etc. This disparity has existed for a variety of reasons, among them political, cultural, economic and even class or socioeconomic in nature. This paper examines one particular component of this phenomenon, the "gray divide" pertaining to the use of IT by our elderly, or senior citizens. By utilizing census data and marketing research, we paint a portrait of a vastly underrepresented target market pertaining to IT and IT-related products: our seniors. While the elderly have more assets and disposable income than their younger counterparts, by and large the IT industry is aimed squarely away from this ever-increasing group of consumers. We offer insights into this trend and offer suggestions for future research. INTRODUCTION The information technology phenomenon known as the "digital divide" has been present since the inception of the computer. The divide alludes to the notion of the "haves and have nots" pertaining to ownership, availability, and use of computers and information technology related products and services. This divide can take on many forms: young vs. old, rich vs. poor, developed nations vs. less developed nations, male vs. female, and so on. Ravi and Murthy (2003; 2004) note that the uneven diffusion of internet penetration rates (i.e., the divide) exist in many countries due to technological, political, social, and even cultural reasons. While there is certainly no doubt as to the existence of the divide and the myriad of potential explanations for it, we feel that marketers of IT and IT-related products are missing out on a potential bonanza or windfall of profits by not tailoring their wares to our elderly citizens. This paper examines the current state of the art with relation to the purchasing power of the elderly, IT products and services geared toward (or not toward) them, and the implications of shrinking this digital divide between the young and old. Impetus for the study Many of us take for granted simple computer tasks such as opening a file, cutting and pasting some text, saving a document and e-mailing it forthwith. It is through the wonder of these electronic aides that such global mass communication can progress on a daily basis, as the world becomes more and more digital every day. However, there is a very large and prosperous segment of our society that is all but forgotten in this age of automation and computer calisthenics. This vast subpopulation is known as the elderly, or perhaps more politically correct, seniors or senior citizens. It is indeed ironic that this oft-neglected demographic has, potentially, more assets and disposable income with which to spend on computers and information technology (IT) than any other single group in the USA and around the world. We believe that seniors would both spend more on IT, and use it more often, if they could overcome the many built-in obstacles and issues associated with the effective implementation of these tools in a senior setting. It is important that vendors of these products be aware of their offering's shortcomings if they want to cash in on this potential goldmine of opportunity. BACKGROUND We begin by noting that the elderly population among us continues to represent an increasing proportion of US, as well as worldwide, residents. It is estimated that almost 30% (29.4%) of American citizens are over the age of 50 (U.S. Census Bureau, 2006) and by 2030, one in five Americans (70 million) will be over 65 (U.S. Census Bureau, 2004). Furthermore, the number of people over the age of 65 is increasing worldwide with the fastest growing subgroup those aged 80+ years (Czaja & Lee, 2007). …