Dr Ong Fon Sim says the present economic downturn is not likely to significantly change the spending patterns of the elderly
"The survey's major objective was to test and compare differences in spending patterns among elderly consumers based on age, ethnicity, income and gender.
"It also sought to examine the evaluative criteria used by this group when making purchase decisions," said Ong, who is also an Honorary Research Fellow in the Asia Pacific Institute of Aging Studies, Lingnan University in Hong Kong.
She has also set up a Centre for Mature Consumer Studies-Malaysia -- which is affiliated to the Centre for Mature Consumer Studies in Georgia State University, Atlanta -- in UM's Faculty of Business and Accountancy.
A total of 1,233 respondents from eight geographical regions in Peninsular Malaysia participated in the 2005 survey. They were divided into three age groups: 55-64 years, 65-74 years and those aged 75 years and above.
Among the respondents, 57.6 per cent were male and 42.4 per cent female.
The Malays made up 55.6 per cent, followed by the Chinese at 29.4 per cent, Indians (11.8 per cent) and other races (three per cent).
The survey, conducted through door-to-door interviews, posed questions related to spending on 10 main categories of products or services -- food; beverages and tobacco; clothing and footwear; gross rent, fuel and power; furniture, furnishings and household equipment and operations; medical and health care expenses; transport and communication; recreation, entertainment, education and cultural services; food and beverages away from home; and, other miscellaneous goods and services.
For each of the above items, respondents were asked to state their estimated monthly expenditure.
The survey found that the average monthly expenditure on the 10 items was RM1,301.90.
About 64 per cent had monthly household incomes of less than RM2,000, while 19 per cent had incomes of between RM2,000 and RM3,000, and 17 per cent reported incomes of more than RM3,000.
The results showed the elderly spent a large proportion of income on food -- 39 per cent or RM507.74 per month.
Rent, fuel and electricity made up 12.4 per cent, food and beverages away from home (11.4 per cent), transport and communication (10.3 per cent) and medical and health care ( 7.3 per cent).
"The findings showed that the elderly, in general, considered product durability the most important factor in their purchase decisions," said Ong.
"In addition, they were concerned about price, comfort and safety features. Design and brand were the least important factors."
However, she said, the consumers in the 65-74 age group spent a significantly bigger portion of their monthly expenditure on beverages and tobacco compared with those in the 55-64 age group.
She said those in the 55- 64 age group spent 6.8 per cent of their monthly expenditure on medical and health care.
"This is significantly lower than those in the 65-74 age group who spend 8.3 per cent of their monthly expenditure on this.
"On the other hand, those 75 years and above spent 7.8 per cent of their monthly expenditure on health care products."
She said the younger age group of 55 to 64 years old placed more importance on quality, after-sales service and environmentally-friendly products compared with those aged 75 years and more.
It was also found that male consumers spent significantly more on food and beverages away from home and less on medical care and health products compared with females.
"The elderly males spend on average RM158.30 each month on food and beverages away from home, significantly higher than the female's RM134.60.
"The other difference in spending patterns between the genders was their expenditure on medical care and health products, with men spending RM91 and women, RM104.20."
Females, said Ong, also placed more importance on design, while males emphasised on quality, safety features and after-sales service.
"Interestingly, those who just receive care exhibit a lower life satisfaction.
"When they receive and don't give, they are not happy. Their life satisfaction and self-worth are low."
She added that despite the economic downturn, it was unlikely that the monthly expenditure patterns of the elderly would alter significantly.
"This is because the major portion of spending is on food. However, they may now spend lesser on food away from home." [rc]
Copyright © 2007 NST
June 28, 2009
MALAYSIA: Taking a peek into the elderly shoppers' list
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KUALA LUMPUR, Malaysia / The New Straits Times / June 28, 2009
RETIREES or elderly consumers spend more than RM500 a month just on food.
This figure represents 39 per cent of their total monthly expenditure. This was followed by rent, fuel, electricity, food and beverages away from home, transport, communication, medical and health care. All these amounted to more than 80 per cent of their monthly expenditure, leaving little room for other purchases.
These are the results of a survey conducted in 2005, led by Universiti Malaya Faculty of Business and Accountancy deputy dean Associate Professor Dr Ong Fon Sim, on the consumption behaviour of elderly people in Malaysia.
The survey was funded by the Science, Technology and Innovation Ministry under the Intensification of Research in Priority Areas grants.
Dr Ong Fon Sim says the present economic downturn is not likely to significantly change the spending patterns of the elderly
"The survey's major objective was to test and compare differences in spending patterns among elderly consumers based on age, ethnicity, income and gender.
"It also sought to examine the evaluative criteria used by this group when making purchase decisions," said Ong, who is also an Honorary Research Fellow in the Asia Pacific Institute of Aging Studies, Lingnan University in Hong Kong.
She has also set up a Centre for Mature Consumer Studies-Malaysia -- which is affiliated to the Centre for Mature Consumer Studies in Georgia State University, Atlanta -- in UM's Faculty of Business and Accountancy.
A total of 1,233 respondents from eight geographical regions in Peninsular Malaysia participated in the 2005 survey. They were divided into three age groups: 55-64 years, 65-74 years and those aged 75 years and above.
Among the respondents, 57.6 per cent were male and 42.4 per cent female.
The Malays made up 55.6 per cent, followed by the Chinese at 29.4 per cent, Indians (11.8 per cent) and other races (three per cent).
The survey, conducted through door-to-door interviews, posed questions related to spending on 10 main categories of products or services -- food; beverages and tobacco; clothing and footwear; gross rent, fuel and power; furniture, furnishings and household equipment and operations; medical and health care expenses; transport and communication; recreation, entertainment, education and cultural services; food and beverages away from home; and, other miscellaneous goods and services.
For each of the above items, respondents were asked to state their estimated monthly expenditure.
The survey found that the average monthly expenditure on the 10 items was RM1,301.90.
About 64 per cent had monthly household incomes of less than RM2,000, while 19 per cent had incomes of between RM2,000 and RM3,000, and 17 per cent reported incomes of more than RM3,000.
The results showed the elderly spent a large proportion of income on food -- 39 per cent or RM507.74 per month.
Rent, fuel and electricity made up 12.4 per cent, food and beverages away from home (11.4 per cent), transport and communication (10.3 per cent) and medical and health care ( 7.3 per cent).
"The findings showed that the elderly, in general, considered product durability the most important factor in their purchase decisions," said Ong.
"In addition, they were concerned about price, comfort and safety features. Design and brand were the least important factors."
However, she said, the consumers in the 65-74 age group spent a significantly bigger portion of their monthly expenditure on beverages and tobacco compared with those in the 55-64 age group.
She said those in the 55- 64 age group spent 6.8 per cent of their monthly expenditure on medical and health care.
"This is significantly lower than those in the 65-74 age group who spend 8.3 per cent of their monthly expenditure on this.
"On the other hand, those 75 years and above spent 7.8 per cent of their monthly expenditure on health care products."
She said the younger age group of 55 to 64 years old placed more importance on quality, after-sales service and environmentally-friendly products compared with those aged 75 years and more.
It was also found that male consumers spent significantly more on food and beverages away from home and less on medical care and health products compared with females.
"The elderly males spend on average RM158.30 each month on food and beverages away from home, significantly higher than the female's RM134.60.
"The other difference in spending patterns between the genders was their expenditure on medical care and health products, with men spending RM91 and women, RM104.20."
Females, said Ong, also placed more importance on design, while males emphasised on quality, safety features and after-sales service.
"Interestingly, those who just receive care exhibit a lower life satisfaction.
"When they receive and don't give, they are not happy. Their life satisfaction and self-worth are low."
She added that despite the economic downturn, it was unlikely that the monthly expenditure patterns of the elderly would alter significantly.
"This is because the major portion of spending is on food. However, they may now spend lesser on food away from home." [rc]
Copyright © 2007 NST
Dr Ong Fon Sim says the present economic downturn is not likely to significantly change the spending patterns of the elderly
"The survey's major objective was to test and compare differences in spending patterns among elderly consumers based on age, ethnicity, income and gender.
"It also sought to examine the evaluative criteria used by this group when making purchase decisions," said Ong, who is also an Honorary Research Fellow in the Asia Pacific Institute of Aging Studies, Lingnan University in Hong Kong.
She has also set up a Centre for Mature Consumer Studies-Malaysia -- which is affiliated to the Centre for Mature Consumer Studies in Georgia State University, Atlanta -- in UM's Faculty of Business and Accountancy.
A total of 1,233 respondents from eight geographical regions in Peninsular Malaysia participated in the 2005 survey. They were divided into three age groups: 55-64 years, 65-74 years and those aged 75 years and above.
Among the respondents, 57.6 per cent were male and 42.4 per cent female.
The Malays made up 55.6 per cent, followed by the Chinese at 29.4 per cent, Indians (11.8 per cent) and other races (three per cent).
The survey, conducted through door-to-door interviews, posed questions related to spending on 10 main categories of products or services -- food; beverages and tobacco; clothing and footwear; gross rent, fuel and power; furniture, furnishings and household equipment and operations; medical and health care expenses; transport and communication; recreation, entertainment, education and cultural services; food and beverages away from home; and, other miscellaneous goods and services.
For each of the above items, respondents were asked to state their estimated monthly expenditure.
The survey found that the average monthly expenditure on the 10 items was RM1,301.90.
About 64 per cent had monthly household incomes of less than RM2,000, while 19 per cent had incomes of between RM2,000 and RM3,000, and 17 per cent reported incomes of more than RM3,000.
The results showed the elderly spent a large proportion of income on food -- 39 per cent or RM507.74 per month.
Rent, fuel and electricity made up 12.4 per cent, food and beverages away from home (11.4 per cent), transport and communication (10.3 per cent) and medical and health care ( 7.3 per cent).
"The findings showed that the elderly, in general, considered product durability the most important factor in their purchase decisions," said Ong.
"In addition, they were concerned about price, comfort and safety features. Design and brand were the least important factors."
However, she said, the consumers in the 65-74 age group spent a significantly bigger portion of their monthly expenditure on beverages and tobacco compared with those in the 55-64 age group.
She said those in the 55- 64 age group spent 6.8 per cent of their monthly expenditure on medical and health care.
"This is significantly lower than those in the 65-74 age group who spend 8.3 per cent of their monthly expenditure on this.
"On the other hand, those 75 years and above spent 7.8 per cent of their monthly expenditure on health care products."
She said the younger age group of 55 to 64 years old placed more importance on quality, after-sales service and environmentally-friendly products compared with those aged 75 years and more.
It was also found that male consumers spent significantly more on food and beverages away from home and less on medical care and health products compared with females.
"The elderly males spend on average RM158.30 each month on food and beverages away from home, significantly higher than the female's RM134.60.
"The other difference in spending patterns between the genders was their expenditure on medical care and health products, with men spending RM91 and women, RM104.20."
Females, said Ong, also placed more importance on design, while males emphasised on quality, safety features and after-sales service.
"Interestingly, those who just receive care exhibit a lower life satisfaction.
"When they receive and don't give, they are not happy. Their life satisfaction and self-worth are low."
She added that despite the economic downturn, it was unlikely that the monthly expenditure patterns of the elderly would alter significantly.
"This is because the major portion of spending is on food. However, they may now spend lesser on food away from home." [rc]
Copyright © 2007 NST
