The effects of health, social, and consumption capital on running-related expenditures in China

ABSTRACT

Research question: This study investigates the effects of health, social, and consumption capital on running-related expenditures. It adds to previous research by empirically testing investment in the stock of health on participation-related expenditures.

Research methods: Chinese amateur runners (n=6,693) were surveyed on health capital (i.e. health change since taking up running), social capital (i.e. running group participation), consumption capital (i.e. sport profiles), socio-demographics, and running-related expenditures over a one-year period. Two instrumental variables reflecting life domain satisfaction were included to address the endogeneity of health change.

Results and findings: Results show that variables capturing health, social, and consumption capital significantly affect total running-related expenditures, whereas the effects on expenditure categories vary. After taking endogeneity into account, the results show that health change since taking up running positively affects total running-related expenditures and sport apparel expenses.

Implications: The findings provide empirical support for Downward et al.’s (2009) general economic model of sports consumption by revealing that health, social, and consumption capital are significant drivers of participation-related expenditures. While mass participation, health, and economic objectives may be achieved concurrently, policy makers should carefully balance these objectives. Sport managers and marketers can use mass participant sport events to stimulate continued participation, and this in turn generates health, social, and consumption capital that drives expenditures. Fostering running group participation increases expenditures. Early career runners should be targeted for sport apparel. Cross-promotion among related sports may increase overall sport consumption.

KEYWORDS:

• Instrumental variables
• sport consumption
• running industry
• mass participant sport event
• Heckman analysis

Acknowledgements

This work was supported by Beijing Planning Office of Philosophy and Social Science under Grant (number 18JDYTB002); Beijing Municipal Education Commission under Grant (numbers PXM2018_014206_000018; CIT&TCD20180334). The authors would like to express their sincere gratitude to the associate editor and the two anonymous reviewers for their insightful and constructive comments during the review process.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 In 2016, the Office of the State Council in China officially referred to tourism, culture, sport, health, elderly care, and education as the happiness industries. See: http://www.gov.cn/zhengce/content/2016-11/28/content_5138843.htm

2 Conversions were all based on the exchange rates on December 25, 2017 (the day we closed the survey): €100 to CN¥778.21; US$100 to CN¥655.42.

3 The use of instrumental variables to address this recursive relationship is described in Data Analysis.

4 The questionnaire is available as online supplementary material.

5 The choice of the instrumental variables is described in Data Analysis.

6 In the sub-group analyses, similar models were constructed but the sample was divided into three groups based on running years (less than one year, one to three years, three years or more). The findings showed that although health change did not affect any expenditure in the less-than-one-year group, it significantly affected TOT and APP in other groups. This suggests that those who ran less than one year may not have formed an expectation about running for health improvement at the beginning of the year during which running-related expenditures were measured. Consequently, health change was less relevant to their running-related expenditures. Results are available upon request.

7 Further data analyses revealed that around 70% of the runners across all running year groups were motivated to run for health; those who ran six or more years were least likely to run for performance; and the longer the years of running, the higher runners rated health change since running. The results are available upon request.

8 Further analyses also indicated that total events attended partially mediated the relationship between group membership and TOT/APP/REG. The results are available upon request.

Additional information

Funding

This work was supported by Beijing Planning Office of Philosophy and Social Science [grant number 18JDYTB002]; Beijing Municipal Education Commission [grant numbers PXM2018_014206_000018; CIT&TCD20180334].