Segmenting Demand for Long-Term Care Insurance Among Mature Consumers

Abstract

This article examines the value of using gerontographic segmentation, which is based on the older consumer's needs and life circumstances, to segment the demand for long-term care insurance. Respondents to two national surveys of older consumers were segmented based on age and on gerontographics, and we observed the effectiveness of each in predicting demand for long-term care insurance. The gerontographic segmentation approach proved more effective in predicting the demand for long-term care insurance. In addition, we investigated the media preferences of the different gerontographic segments in order to provide an actionable targeting approach. Although the present research does not provide a demand function or market share prediction for particular products, it suggests the value of using segmentation based on the consumer's life circumstances rather than age.

KEYWORDS:

• gerontographics
• long-term care insurance
• segmentation
• target marketing

Notes

Note. Differences of approximately 5% or greater are significant.

Note. Differences of approximately 5% or greater are significant.

Note. Differences of approximately 5% or greater are significant.

Note. Differences of approximately 5% or greater are significant.