ABSTRACTBecause of the aging population, demand for retirement and medical care services will continue to escalate during the next century. One of the fastest growing areas in terms of elderly care are assisted-living facilities. However, there is a scarcity of empirical research related to assisted-living facilities (ALF). The objectives of this exploratory study were to determine the factors that impact the purchase decision of an assisted living facility and the relationships among those variables. The study indicated that individuals were more likely to utilize an assisted living facility if they had visited an ALF in the past, had developed a positive attitude toward ALFs and if the elderly person needing health care had experienced major medical problems within the last five years. Differences were found between respondents 55 and over and respondents under 55. The impacts of these findings are discussed with managerial implications of the research.