The importance of older consumers to small business survival: Evidence from rural Iowa

This study examines consumers between the ages of 50 and 85 for the purpose of defining potential customers and for devising small retail business str ategies. Older residents in three rural Iowa communities were categorized i nto three clusters on the basis of their community attachment. Demographic and psychographic differences among the clusters were examined for developi ng sound retail strategies converging on rural social and economic conditio ns. Results suggest that the economic activities involved in consumer/retai ler exchange are embedded in the community's social structure. Following an efficiency strategy for decreasing operational costs, rural retailers are encouraged to focus on the active older consumer and to increase their own involvement in community activities. Also advocated is an entrepreneurial s trategy involving diversification of the product or service mix by combinin g retailing with additional sidelines. Older consumers offer opportunities to local small-sized retailers who are alert to the concerns and unmet need s of these residents.