AMB200  Consumer  Behaviour  

Assessment  2:  Report  

 
Uber’s  Logo,  Collected  from  the  Application.  

Tayla  O’Driscoll    
 
 
 
 
 
 
  
1.0.  CONTEXT  AND  PROBLEM/OPPORTUNITY    
Uber  is  a  successful  and  innovative  multi-­‐national  company  that  has  grasped  the  attention  of  
the  millennial  market  (Rempel,  2014).  However,  the  problem  that  Uber  is  now  faced  with  is  
the  limited  market  share  they  hold  over  the  40-­‐60-­‐year-­‐old  demographic.  Even  though  this  
age   group   is   relatively   ‘tech   savvy’   there   is   still   a   disconnect   with   applications   usage   on  
smartphones.  In  order  to  increase  the  market  share,  the  focus  needs  to  be  placed  on  four  
factors;   motivation,   value   proposition,   values   and   recommendations.   Henceforth,   if   all  
elements  within  this  issue  are  addressed  than  the  company  would  be  able  to  gain  the  trust  of  
the  consumers  aged  40-­‐60  year  old’s.    

2.0.  LITERATURE  REVIEW  

The   issue   at   hand   for   Uber   is   connecting   with   a   combination   of   Generation   X   and   Baby  
Boomers,  as  they  have  heavy  influence  on  consumer  trends  and  behaviours  (Previte,  2013).  
Together  they  inhabit  35%  of  Australia’s  population  and  therefore  have  considerable  spending  
power  (Previte,  2013).  Characteristics  defined  through  the  demographics  include;  the  need  
and  obsession  to  maintain  youth  and  a  high  priority  placed  on  leisure  time  (Previte,  2013).  
With  both  characteristics  aligning  itself  to  the  service  for  which  Uber  provides,  the  question  
now   is   why   haven’t   they   responded   as   well   as   the   millennial   generation   have?   Research  
surrounding  smartphone  and  application  usage  suggest  two  main  reasons  as  to  why.  These  
include;  apprehension  to  supply  private  details  online,  media’s  influence  for  a  bad  reputation.      
 
The  first  and  most  significant  barrier  for  Uber  to  overcome  is  that  of  hesitance  due  to  privacy  
policies  with  e-­‐commerce.  Uber  revolves  round  online  payments  (e-­‐commerce)  and  location  
tracking  which  is  two  of  the  most  common  risks  brought  up  by  consumers  (Koskosas,2011).  
Many   consumers   especially   those   within   the   age   group   of   40-­‐60   year   olds   will   hesitate   to  
disclose  such  personal  and  financial  information  in  fear  of  them  using  such  information  in  a  
way  that  breaches  their  privacy  policy  (Chin,  E.  2009).  It  was  released  through  a  study  that  
many  do  not  read  the  privacy  statements  of  a  company  and  would  rather  base  safety  off  of  a  
organisations   reputation   for   protecting   (Desai,   2012).   Consumers   become   warier   around   a  
website   where   the   credit   card   details   are   mandatory   which   Uber   fits   within   that   category  
(Feeney,  2015).  However,  the  privacy  policy  statements  were  not  always  seen  as  reassurance  
in  fact  many  were  warier  when  the  statement  was  longer,  and  a  lot  of  business  and  legal  terms  
put  them  off  (Lim,  2003). Throughout  the  research  for  this  particular  issue  it  was  particularly  
evident  that  trust  is  a  major  factor  in  increasing  consumers  to  buy  your  product.  Once  they  
establish  that  the  service  is  of  good  quality  and  all  transactions  in  between  were  accurately  
undergone,  then  they  are  more  likely  to  become  a  loyal  customer  of  the  brand  (Boritz,  2011).    
 
Another  essential  aspect  for  increasing  the  amount  of  consumers  within  the  age  of  40-­‐60-­‐
year-­‐old   is   the   usage   of   smartphones   and   with   that   applications   on   the   smartphone.   In  
Australia,  the  two  biggest  online  presences  are  the  50  plus  age  group  who  cover  31%  and  
those  aged  35-­‐49  occupy  27.6%  of  the  online  market  (Castleford,  2013).  Subsequently  a  recent  
survey  showed  that  42%  of  40-­‐49  year  olds  and  45%  of  Baby  boomers  use  social  media  on  a  
daily   basis   (The   Advocate,   2014).   With   such   high   numbers   one   would   think   that   these  
consumers   would   have   had   some   exposure   to   the   Uber   application.   Which   leads   to  
questioning  why  they  do  not  use  this  particular  app.  Within  the  same  survey  they  found  that  
most  use  social  apps  that  can  connect  them  to  friends  and  family  and  sharing  items  of  interest,  
meaning  apps  like  Facebook,  LinkedIn,  Twitter,  Instagram  and  WhatsApp  are  on  the  top  for  
the  likes  of  the  40-­‐60  age  demographic  (O’Keefe,  2014).  However,  in  another  conducted  study  
this  particular  age  demographic  76%  of  the  people  prefer  to  use  laptops  for  extensive  and  
minimal  researching,  and  when  they  do  research  a  new  product  they  read  4-­‐5  reviews  before  
making  their  decision  (Bennett-­‐Kapusniak,  2015).  In  the  year  2013,  40%  of  smartphone  users  
made  a  purchase  online  and  49%  of  tablet  users  brought  something  online  (Ipsos,  2013).  All  
of  this  information  is  incredibly  positive  but  also  troubling  for  Uber  as  to  why  the  app  has  not  
yet  caught  their  attention,  possible  solutions  for  fixing  this  issue  will  come  later  in  the  report.    
 
 
 
 
 
3.0.  THEORY/MODEL/FRAMEWORK  
The  theory  for  which  best  explains  the  behaviours  of  the  target  consumer  would  be  that  of  
attitude  formation,  specifically  the  Fishbein  model.  In  all  three  of  the  main  issues  discussed  
previously,  it  was  clear  that  the  attributes  would  call  for  the  consumers  to  attain  an  attitude  
towards   the   objective.   For   the   development   of   attitude   formation   there   are   two   sections;  
emotion   and   cognition.     Emotion   is   the   way   a   consumer   feels   towards   an   attitude   object,  
whereas   cognition   is   the   beliefs   for   which   a   consumer   holds   about   an   attitude   object.   For  
example,  if  when  the  consumer  rode  with  uber  they  had  a  positive  experience  they  will  have  
a  happy  outlook  on  the  product.  And  for  cognition  if  a  consumer  holds  a  negative  belief  of  the  
ride  than  it  will  be  very  hard  to  overturn  into  a  positive  attitude  object.  A  more  in-­‐depth  look  
into  the  attitudes  of  a  consumer  would  mean  to  explore  the  Fishbein’s  model.  It  contains  three  
components  which  piece  together  to  create  the  model  they  include;  the  overall  attitude  about  
the   object,   significant   beliefs   people   have   about   an   object   and   evaluation   of   each   of   the  
important   attributes   (Fishbein,   1975).     See   appendix   1.0   for   diagram.   This   model   helps   to  
break  down  consumer  decision  when  faced  with  alternative  objects.  This  can  make  clear  to  
the   consumer   the   choices   they   can   make   when   it   comes   to   the   competitors,   for   Uber   it’s  
competitors  are  public  transport  and  taxi’s.  attributes  which  they  could  be  compared  to  are  
costs,  efficiency,  time,  quality  of  vehicle,  quality  of  experience.    
 
 

4.0.  RECOMMENDATIONS    
   
In  order  for  growth  of  the  company  to  persist  their  needs  to  be  a  solution  to  the  issue  at  hand,  
which  is  the  lack  of  consumers  aged  40-­‐60  years  old  using  Uber.  An  outline  of  three  possible  
solutions   will   be   projected.   They   include   advertisements   placed   on   television,   an   advert  
focused  solely  on  the  safety  of  the  brand  and  finally  incentives  for  Uber  members  to  sign  up  
their  parents  or  even  their  grandparents.    
 
Many  studies  undergone  showcase  that  the  primary  use  for  the  target  market  at  hand  uses  a  
combination  of  television  and  internet/social  media.  The  Baby  Boomer’s  generation  prefer  
television  and  on  average  will  watch  4  hours  and  2  minutes  a  day,  which  is  twice  as  much  as  
Generation  X  (Previte,  2013).  See  appendix  1.1  for  more  demographics.  Therefore,  the  best  
way  to  make  more  aware  of  the  product  would  be  to  put  a  45  second  ad  on  television  mainly  
around  the  early  hours  of  the  morning  or  the  late  evening  time  slot.  The  advertisement  should  
show   a   combination   of   events   that   they   may   use   the   ride-­‐share   for.   As   an   example   have  
people  in  the  marketed  age  bracket,  having  brunch  at  a  ‘classy’  restaurant  and  then  flip  to  
someone   getting   out   at   the   medical   centre   or   even   on   a   date   night.   It   needs   to   have   an  
emotional  appeal  to  it  and  allows  the  consumer  to  know  the  different  types  of  occasions  and  
that  it  is  a  relatable  product.  Also,  when  creating  advertisements,  it  is  beneficial  to  note  that  
the  more  simplistic  the  better  but  without  a  condescending  tone.  Sandra  O’Neill  of  Marketing  
Division  Australia  claims  that  “older  consumers  respond  well  to  light  hearted  or  humorous  
campaigns   but   reject   cliché   adverts   that   feature   younger   people.”   With   this   advert   an  
emphasis   of   any   occasion   at   any   time   Uber   will   be   there   unlike   the   unreliability   of   the  
competitors  within  the  industry,  and  more  cost  effective  for  the  demographic.    
 
In  the  last  few  years  there  has  been  quite  a  few  incidents  that  have  occurred  surrounding  
the  disruption  of  safety,  whether  it  be  an  international  or  national  problem.  The  hype  that  
came  to  Australia  when  Uber  was  released,  was  followed  with  the  media  sensationalizing  
the  acts  leading  to  a  somewhat  negative  connotation  of  aspects  of  the  brand.  In  terms  of  
attitude  formation  this  can  have  a  lasting  effect  on  the  brand  as  consumers  will  hold  these  
negative  beliefs  when  they  look  at  purchasing  a  ride.  A  way  for  which  this  issue  could  be  
addressed  is  through  a  PR  strategy  of  flipping  the  problem  to  become  a  benefit.  This  can  be  
done  through  the  reassurance  of  the  product  itself,  being  a  safe  and  enjoyable  experience.  
The  advert  could  simply  show  the  process  of  a  hesitant  customer  signing  up  and  then  
booking  their  first  ride,  but  when  they  get  in  they  realise  that  it’s  just  like  riding  in  the  car  
with  their  friends  or  family,  they  come  to  the  conclusion  that  the  media  dramatised  the  
incidents  heavily  to  gain  viewers.  In  that  sense  it  brings  comfort  to  the  viewers  in  the  most  
realistic  way  possible.  In  addition  to  the  advert  a  clear,  concise  an  unequivocally  worded  
privacy  policy  to  enable  another  dimension  of  safety  is  undertaken.  

As  discussed  through  many  articles,  that  explain  why  it  is  that  some  Baby  boomers  are  using  
Uber  all  falls  down  to  that  of  millennial’s.  A  vast  majority  of  people  aged  18-­‐28  years  old  are  
downloading  the  app  onto  their  grandparents  and  parents  phone.  They  explain  how  it  works  
to  them  and  get  them  set  up,  they  are  the  force  behind  the  older  users  of  the  ride-­‐sharing  
company.  This  phenomenon  is  explained  within  the  Forbes  article  were  an  85-­‐year-­‐old  man  
who  moved  across  the  country  and  used  Uber  because  he  didn’t  know  anyone  in  the  city  and  
remembered  his  grandson  put  it  on  his  phone  (Campbell,  2015).  Therefore,  to  enable  a  growth  
within   the   market   share   for   40-­‐60   year   olds   an   incentive   needs   to   be   made   to   both   the  
millennial’s   and   the   combination   of   Generation   X   and   Baby   Boomers.   This   can   be   done  
through  a  process  similar  to  that  of   Twitter  or  Snapchat  when  it  gives  the  option  to  invite  
friends,  but  have  it  programmed  so  that  when  you  invite/sign  up  a  person  between  40-­‐60  
years  old  you  receive  15%  off  of  your  next  $20  ride.  This  will  also  benefit  the  new  member  of  
Uber  as  they  will  receive  their  first  experience  with  the  company  for  free.  This  promotional  
package  would  only  last  for  a  month  to  add  the  cliché  element  of  ‘be  quick  before  the  offer  
ends’.  The  marketing  done  here  will  be  considerably  beneficial  to  the  market  share.  As  once  
the  consumer  knows  what  the  product  is  and  how  it  work’s  they  will  be  able  to  try  this  foreign  
product  to  them  without  the  risk  of  losing  money,  enabling  a  trust  between  the  consumer  and  
the  business  partner.    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.0.  REFERENCES    
 

Bennet-­‐Kapusniak,   R.   (2015).   Baby   Boomers   and   Technology:   Factors   and   Challenges   in  

Utilizing  Mobile  Devices.  The  University  of  Wisconsin.    

Boritz,  J.  No,  G.  (2011).  E-­‐Commerce  and  Privacy:  Exploring  what  we  know  and  opportunities  
for  future  discovery.  Journal  of  Information  Systems.    
 
Campbell,   H.   (2015).   Why   Senior   Citizens   Are   Flocking   to   Uber.   Forbes   Tech.   Accessed   at:  
http://www.forbes.com/sites/harrycampbell/2015/07/23/why-­‐senior-­‐citizens-­‐are-­‐flocking-­‐
to-­‐uber/#665d0e674a97  
 
Castleford  Org.  (2013).  Baby  Boomers  Australia’s  Largest  Group  of  Internet  Users.  Accessed  
at:http://www.castleford.com.au/blog/2013/baby-­‐boomers-­‐australias-­‐largest-­‐group-­‐of-­‐
internet-­‐users  

Chin,  E.  &  Sekar,  V.  (2012).  Measuring  User  Confidence  in  Smartphone  Security  and  Privacy.  
University  of  California.    

Desai,   S.   &   Desai,   J.   &   Phelps,   D.   (2012).   E-­‐commerce   policies   and   Customer   Privacy:   A  
Longitudinal  Study.  McNee  State  University.    

Feeney,  M.  (2015).  Is  Ridesharing  Safe?  Policy  Analysis  

Fishbein,  M.  &  Ajzen,  I.  (1975).  Belief,  attitude,  intention  and  behavior:  An  introduction  to  
theory  and  research.  Reading,  MA:  Addison-­‐Wesle.    

Google  and  Ipsos  (2013).  Reaching  Today’s  Boomers  and  Seniors  Online.  Accessed  at:  
http://info.immersionactive.com/hs-­‐fs/hub/315299/file-­‐2649639140-­‐
pdf/2015_Website_Files/reaching-­‐todays-­‐boomers-­‐and-­‐seniors-­‐online_research-­‐studies.pdf  

Jones,  K.  (2013).    How  to  Cash  in  on  the  Baby  Boomer  Market.  The  Sydney  Morning  Herald.  
Accessed   at:   http://www.smh.com.au/small-­‐business/growing/how-­‐to-­‐cash-­‐in-­‐on-­‐the-­‐baby-­‐
boomer-­‐market-­‐20130721-­‐2qdf8.html  

Koskosas,  I.  (2011).  E-­‐Banking  Security:  A  Communication  perspective.  University  of  Western  
Macedonia.    

Lim,  N.  (2009),  “Consumers’  perceived  risk:  sources  versus  consequences”,  Electronic  
Commerce  Research  and  Applications,  Vol.  2  No.  3,  pp.  216-­‐228.    

McCrindle  Org.  (2013).  Australia:  The  Digital  Media  Nation.  Accessed  at:  
http://www.mccrindle.com.au/researchsummaries/2013/australia-­‐digital-­‐media-­‐
nation_mccrindle-­‐research.pdf  
O’Keefe,  J.  (2014).    Baby  Boomers  and  digital  literacy:  Their  access  to,  and  uses  of,  digital  
devices  and  digital  media.  Pepperdine  University.    

Previte,  J.  &  Russell-­‐Bennet,  R.  &  Solomon,  M.  (2013).  Consumer  Behaviour:  Buying,  Having,  
Being  (3rd  ed.).  Frenchs  Forest,  NSW:  Pearson  Australia.    

Rempel,  J.  (2014).  Product  Evaluations  and  Guides:  A  review  of  Uber.  AccessWorld  Magazine.  
Accessed  at:  http://www.afb.org/afbpress/Pub.asp?DocID=aw150602  

The  Advocate.  (2014).  Getting  a  grasp  on  Social  Media:  Baby  Boomers  secure  using  
Smartphones.  Coffs  Harbour,  QLD  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.0.  APPENDIX  
 

Appendix  1.0.    

 
Diagram  of  the  Fishbein  &  Ajzen:  Theory  of  Reasoned  Action.  

Appendix  1.1  

 
Hours  each  Generation  spends  watching  television  per  day.