The Business & Aging Networker

Summer 1999

Computer Technology and Older Adults: European and American Perspectives

by Rosemarie Gilligan

Older adults in both Europe and the United States are a potentially enormous market for computer technology. The potential is fueled by a number of factors, including the unprecedented growth of the older adult population; broader access to user-friendly technology; and a changing attitude among older adults and their adult children about the valuable role such technologies can play in their lives. With well-planned strategies, corporations can enter this growing market, increase PC sales and develop new products and services for this age group.

Age demographics are undergoing significant changes in the United States and in the European Union (EU) countries--Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom. At present, 72 million Americans (27 percent of the population) are over 50 years of age, and 104 million people in EU countries (28 percent of the combined population) are over 55. It is not possible to categorize these older adults--who come from a range of backgrounds--as one homogeneous group.

Home and leisure PC use among adults ages 55-plus is relatively low in Europe, according to Eurobarometer 1997. In Germany, for example, 11.4 percent of older adults use PCs in those settings; in France, the figure is 7.5 percent. Internet users in the 55-plus age group represent 11 percent of all users in the United Kingdom and 5 percent in the Netherlands.

By contrast, 30 percent of adults over age 50 in the United States use a PC at home, according to a recent study by Microsoft and the American Society on Aging. This study also found that ownership drops dramatically with increasing age: Only 16 percent of those 70­79 years old own a computer. According to a 1998 SeniorNet and Charles Schwab study, 16.5 percent of the total U.S. online population is over 50 years of age.

Research reveals several barriers corporations must overcome if they wish to expand PC use by older adults in America and Europe. These include lack of awareness (older adults do not see any potential benefits to the use of PCs); lack of confidence (older adults often fear new technology); lack of trust in the value and integrity of Internet resources; and a lack of equipment designed to meet older adults' needs. Gender also creates challenges in bringing women into the market: Older men are more affluent, better educated and more interested in information technology than their female counterparts.

Other limitations on PC use by older adults are particularly present in the EU Significant language barriers arise in countries other than the U.K., as the majority of Internet services and computer jargon are in English. The costs of equipment and Internet access have been identified as further barriers: In many European countries, older people living on state pensions are classified as one of the lowest-income groups. At the same time, European countries also are home to a large number of well-off older people who can afford to purchase equipment and pay for Internet access.

Overcoming the Barriers

A number of strategies will be required to bring more older adults into the PC marketplace. PC training is vital for those who have had no contact with computers. Offering training and real-life experience with computers and the Internet is one of the most successful ways that businesses can help expand this market.

Working with nonprofit organizations and government agencies is an excellent way for corporations to learn about the needs of older adults and to develop products and services of interest to this age group. The worldwide Microsoft Seniors and Technology program is an example of best practice in this area. It has donated large amounts of software and cash to aging-related nonprofits and has been very successful in promoting PC literacy among elders. (More information on the program is available on the Web at www.microsoft.com/seniors.)

In general, computer services and computers aimed at older adults should be affordable Elders are willing to pay for a service if they feel that it is essential and will improve the quality of their lives. Before they will purchase information technology, therefore, they need to be better informed about the benefits it offers.

For Internet services, tailoring content and design to meet the needs of older adults would be another way to increase the number of elders in the information technology market. The most popular online services for elders are those that offer information on Medicare, pensions, Social Security, employment, retirement, housing, insurance, travel and shopping. One reason that Internet use is low among older adults in Europe is that few services are targeted to address their concerns.

More research must be carried out regarding the computer needs of older adults to make it easier and more enjoyable for them to use information technology. The results of such research must be incorporated into hardware and software, starting at the initial design phase. For example, new to Microsoft's Windows 98 is the Accessibility Wizard, a feature that magnifies fonts up to nine times, making the screen more readable for older users with vision impairments.

Computer training courses that are tailor-made for older adults and that take their background, learning speed and social context into account seem to be the most effective Nonprofit and community organizations that provide PC training or access should be encouraged to open their doors to people of all ages as a way of promoting computer literacy among older adults. To increase Internet use by elders, the industry should further examine Offering access via TV as an alternative to computer ownership.

Commercial Web sites in the United States targeting the 45-plus age group appear to be very successful. This is an area that could be developed in Europe in the future. At present, the sheer number of English speakers in North America makes it more feasible for businesses to address age groups separately, whereas in Europe the wide range of smaller language and cultural groupings presents challenges for such niche marketing. Businesses will have to find ways to overcome that barrier--along with the others discussed above--both to help older adults reap the benefits of the latest technology and to profit from the resulting growth of the market.

Rosemarie Gilligan is a researcher at the European Institute for the Media, Dusseldorf, Germany.

 


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