Age and Product Substitution and Cohort Preferences

Chapter
Part of the The Springer Series on Demographic Methods and Population Analysis book series (PSDE, volume 30)

Abstract

The eleventh chapter examines one of the demographic characteristics of consumer behaviour: product substitution, as people reach retirement age and their social and economic functions change. The chapter reviews behaviour traits that change with age, such as home and work orientation, changes in life styles due to alternative uses of time, physical functioning and capacity to cope with certain pursuits. To this end, it uses an analytical framework to identify given commodities associated with preferences as social and economic functioning changes in retirement, and substitution of some commodity types by others. In addition, this chapter looks at the association between given age cohorts that have experienced similar social and economic experiences and specific generic products that they continue to prefer during their life cycle. It discusses identification problems in cross-sectional and longitudinal surveys and the use of pseudo panels. It uses the concept of pseudo panels to examine age, period and cohort effects. It reviews the characterisation of generational cohorts. It looks at possible cohort effects in relation to a number of specific commodities over two decades using constrained regression models.

Keywords

Consumer Behaviour Household Head Cohort Effect Product Substitution Mortgage Interest 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Abercrombie, N., Hill, S., & Turner, B. S. (2000). The Penguin dictionary of sociology. London: Penguin Books.Google Scholar
  2. Australian Bureau of Statistics (ABS). (2006). Household expenditure survey – summary of results – Australia 2003–04 (reissue). Catalogue No. 65305.0. Canberra.Google Scholar
  3. Australian Bureau of Statistics (ABS). (2007). Household expenditure survey 2003–04. Canberra. Tabulations of detailed items of household expenditure for all and one-person households.Google Scholar
  4. Australian Bureau of Statistics (ABS). (2008). How Australians use their time, 2006. Catalogue No. 4153.0. Canberra.Google Scholar
  5. Australian Institute of Health and Welfare (AIHW). (2008). Australia’s health 2008. Canberra.Google Scholar
  6. Bartley, M., Power, C., Blane, D., Smith, G. D., & Shipley, M. (1994, December). Birth weight and later socioeconomic disadvantage: Evidence from the 1958 British cohort study. British Medical Journal, 309, 1475.CrossRefGoogle Scholar
  7. Bureau of Labor Statistics (BOLS). (2009). Consumer expenditures in 2007. Washington, DC: US Department of Labor.Google Scholar
  8. Bureau of Labor Statistics (BOLS). (2010a). Consumer expenditure survey 1984. Washington, DC: US Department of Labor. http://stats.bls.gov/cex. Accessed 28 July 2007.Google Scholar
  9. Bureau of Labor Statistics (BOLS). (2010b). Consumer expenditure survey 1994. Washington, DC: US Department of Labor. http://stats.bls.gov/cex. Accessed 28 July 2007.Google Scholar
  10. Bureau of Labor Statistics (BOLS). (2010c). Consumer expenditure survey 2004. Washington, DC: US Department of Labor. http://stats.bls.gov/cex. Accessed 28 July 2007.Google Scholar
  11. Bureau of Labor Statistics (BOLS). (2010d). Consumer price index – All urban consumers. Washington, DC: US Department of Labor. cpi_info@BLS.gov. Accessed 22 Sep 2010.Google Scholar
  12. Carlson, E. (2008). The lucky few: Between the greatest generation and the baby boom. New York: Springer.Google Scholar
  13. Department of Health and Human Services (DHHS). (2004). Summary health statistics for the U.S. population: National Health Interview Survey, 2002. Hyattsville, MD: May 2004.Google Scholar
  14. Heaney, J. (2007). Generations X and Y’s internet banking usage in Australia. Journal of Financial Services Marketing, 11, 196–210. doi:101057/palgrave.fsm.4760052.CrossRefGoogle Scholar
  15. Hobbs, F. (2005). Examining American household composition: 1990 and 2000. Census 2000 special Reports CENSR-24. Washington, DC: US Printing Office.Google Scholar
  16. Krantz-Kent, R. (2005, September). Variations in time use at stages of the life cycle. Monthly Labor Review, 38–45.Google Scholar
  17. Lader, D., Short, S., & Gershuny, J. (2006). The time use survey, 2005. London: Office of National Statistics.Google Scholar
  18. Magnus, G. (2009). The age of ageing. How demographics are changing the global economy and the world. Singapore: Wiley (Asia).Google Scholar
  19. Mannheim, K. (1970). The problem of generations. The Psychoanalytical Review, 57, 378–404.Google Scholar
  20. Mason, W. M., & Wolfinger, N. H. (2001). Cohort analysis. CCPR-005-01, April 2001. Los Angeles: University of California. On-line Working Paper Series http://escholarship.org/uc/iem/8wc8v8cv. Accessed 4 Jan 2011.Google Scholar
  21. Moore, K., & Pareek, N. (2010). Marketing: The basics. New York: Rutledge.Google Scholar
  22. Office of National Statistics (ONS). (2008). Family spending: A report on the 2007 Expenditure and Food Survey. London: Palgrave Macmillan.Google Scholar
  23. Paulin, G. D. (2000, May). Expenditure patterns of older Americans, 1984–97. Monthly Labor Review, 3–28.Google Scholar
  24. Pol, L., & Thomas, R. (2002). The demography of health and health care. Boston, MA: Kluwer Academic/Plenum Publishers.Google Scholar
  25. Reitz, J. O., Reynolds, F. D., & Stout, R. G. (1983, February). Analysing changing consumption patterns with cohort analysis. Journal of Marketing Research, xx, 12–20.Google Scholar
  26. Ryder, N. B. (1965). The cohort as a concept in the study of social change. American Sociological Review, 30, 843–861.CrossRefGoogle Scholar
  27. Schuman, H., & Scott, J. (1989). Generations and collective memories. American Sociological Review, 54, 359–381.CrossRefGoogle Scholar
  28. Strauss, W., & Howe, N. (1997). The fourth turning. New York: Broadway Books.Google Scholar
  29. United Nations (UN). (2009). World population prospects: The 2008 Revision Population Data Base. New York. http://esa.un.org/unpp/p2k0data.asp. Accessed 26 June 2009.
  30. United Nations Development Program (UNDP). (2007). Human development report 2007/2008. New York: Palgrave Macmillan.CrossRefGoogle Scholar
  31. Williams, K. C., Page, R. A., Petrosky, A. R., & Hernandez, E. H. (undated). Multi-generational marketing: descriptions, characteristics, lifestyles and attitudes. Journal of Applied Business and Economics, 11(2). http://www.na.businesspress.com.JABE/Jabe112/WilliamsWebb.pdf.
  32. World Health Organization. (1997). The world health report 1997. Geneva: World Health Organization.Google Scholar

Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  • Jo M. Martins
    • 1
  • Farhat Yusuf
    • 1
  • David A. Swanson
    • 2
  1. 1.Department of Marketing and ManagementMacquarie UniversitySydneyAustralia
  2. 2.Department of SociologyUniversity of California RiversideRiversideUSA

Personalised recommendations