The Ten Shades of Silver: Segmentation of Older Adults in the Mobile Phone Market

With the closing of the age-related gap in mobile phone uptake and the aging of the population, older adults have increasingly become a desirable target group for mobile phone providers. Although there is abundant literature describing the use of mobile phones among older adults, segmentation studies on this group of consumers remain scant and inconclusive. Drawing on the benefit and behavioral segmentation, this study presents a segmentation model of older adults in the mobile phone market that incorporates a wide variety of consumer behavior, attitudinal, and acceptance variables relevant for the understanding of mobile phone (non-)usage patterns among users of feature phones and smartphones, as well as among mobile phone nonusers. The model is based on a hybrid approach with a two-step cluster analysis using data collected by a telephone survey from a representative sample (n=1,581) of adults aged 55 or older in Slovenia in 2015. The analysis yielded two uniquely profiled clusters within each of the five a priori-determined segments, summing to a total of 10 clusters. The results show that older adults still prefer feature phones. Nevertheless, the mobile phone market has become highly heterogeneous, with clusters of older adults having distinguishable feature phone- and smartphone-use patterns as well as socio-demographic and life-course profiles. Since many of these profiles undermine the notion of older adults as basic mobile phone users, our findings represent a solid foundation for scholars and marketers to further investigate their specific needs in relation to more advanced smartphone and mobile internet usage.