Hurdles for sports consumption? The determining factors of household sports expenditures

Erik Thibaut, Steven Vos and Jeroen Scheerder

Sport Management Review, 2014, vol. 17, issue 4, 444-454

Abstract: •The household production theory performs well in explaining sports consumption.•Two-stage approaches are needed to analyze household sports consumption.•Higher educated households more often spend money on sports participation.•Higher educated households do not spend higher amounts of money on sports.•Other influencing factors are family income and sports club membership.The purpose of this article is to explore the determining factors of household expenditures on sports participation. Due to a relatively large amount of zero-expenditures, simple regression methods are not suited. Because of methodological reasons, the two-step Heckman approach is used over the Tobit approach and the Double Hurdle approach. The participation decision (spend money or not) is influenced by sports participation of the parents, family income, education, sports club membership, and sports frequency. Determining factors of the intensity decision (amount of money that is spent on sports participation) are family income, sports participation of parents during their youth, sports club membership, sports frequency, age of youngest child, and household size. Moreover, the results indicate that a two-stage approach is needed because it gives a more in-depth insight in the household spending behavior. For example, higher educated households more often spend money on sports participation. However, this research demonstrates that once higher educated households have decided to spend money on sports participation, the amount of money spent does not differ from lower educated households.

Date: 2014
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DOI: 10.1016/j.smr.2013.12.001

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