Silver dollars: the development of the US elderly market segment

Abstract

PurposeThe purpose of this paper is to periodize the history of the US senior market segment, a large, lucrative target market.Design/methodology/approachThe paper uses a four‐step adaptation of an existing framework, periodizing the segment's history into three phases: independence phase, mid‐nineteenth century‐1935; growing affluence phase, 1935‐1965; and maturity phase, 1965 to present.FindingsThe senior market began with urbanization resulting from the industrial revolution. The growth of private pensions, two World Wars, a variety of governmental programs such as the GI Bill and Social Security and Medicare Acts, political power resulting from the establishment of groups such as the American Association of Retired Persons, and increasing stress on inclusiveness in marketing accelerated the growth of the market. As baby boomers age, the market is sure to grow in scope and market power.Research limitations/implicationsTime and space limitations require that this paper focus on the senior market only in the USA, and analyze only broad activities, events, and trends.Originality/valueThis paper contributes to the study of marketing history and market segmentation in particular by analyzing the origins and growth of this very large and unique market segment – largely due to the fact that it currently represents about 12 percent of the US population, unique in that all Americans are or likely will be members. It illustrates the confluence of government policy, marketers' never‐ending drive to find new target markets via product differentiation, and the importance of demographic change.