Distinguishing the spending preferences of seniors

One thousand, four hundred and six seniors were asked about their consumer spending preferences. While some could name a product spending preference, others could not. This study examines the characteristics that best distinguish those elders who are uninterested in spending on consumer products from those who choose product specific preferences. Discriminant function analyses show that age best distinguishes the non-interested group from the others, supporting a previous report by Walker and Schwenk (1991). Income and health status most reliably separate those whose most important spending priority is a recreational product from those most interested in basic needs or housing products. Those whose spending priority is a housing item tend to be home-owners who have lived in their residences for long periods of time. The results confirm that the heterogeneity among seniors documented in other areas (such as health and social characteristics) extends to their consumption preferences. The diversity in spending preferences can be understood in terms of a desire to enhance quality of life.