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

Abstract

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.