Financial Barriers and Pricing Strategies Related to Participation in Sports Activities: T

Description
Physical activity levels in most
affluent countries are low and many people do
not meet the current recommendations. Particularly
for people with a low income, economic strategies seem promising to stimulate taking
part in sports activities. This study investigated
the importance of economic restraints for
taking part in sports activities as well as perception of low-income people toward
different pricing interventions.

716
Journal of Physical Activity and Health, 2009, 6, 716-721
© 2009 Human Kinetics, Inc.
Financial Barriers and Pricing Strategies Related
to Participation in Sports Activities: The Perceptions
of People of Low Income
Ingrid H.M. Steenhuis, Steffie B.C. Nooy, Machiel J.G. Moes, and Albertine J. Schuit
Background: Physical activity levels in most
affuent countries are low and many people do
not meet the current recommendations. Particu-
larly for people with a low income, economic
strategies seem promising to stimulate taking
part in sports activities. This study investigated
the importance of economic restraints for
taking part in sports activities as well as per-
ceptions of low-income people toward different
pricing interventions. Methods: A qualitative
study was conducted, using semistructured,
individual interviews with 27 low-income men
and women. The framework approach was used
to analyze the transcripts of the interviews.
Results: The respondents considered fnances
to be an important barrier for participating in
sports activities, together with some individual
barriers. Promising pricing strategies are a dis-
count on the subscription to the ftness or sports
club, a 1 month free trial, and free entrance to
the swimming pool once a week. Conclusions:
Pricing strategies may be a promising interven-
tion to increase physical activity levels of low-
income people. However, this study indicates
that this should be coupled with an intervention
directed at individual barriers. Some pricing
strategies will be used and appreciated more by
low-income people than other pricing strate-
gies. In addition, pricing strategies should be
tailored to individual needs and preferences.
Keywords: economic environment, costs,
physical activity, socio-economic status
Lack of physical activity is an important risk factor
for coronary heart diseases, for several types of cancer,
and also for overweight and obesity.
1
At present, only half
of the Dutch population is active according to the recom-
mendations, as in many other western societies.
2
This
percentage is even lower for low-income populations.
2
There is still a lack of effective interventions tar-
geted at low-income groups.
3
Environmental strategies
may play an important role in improving physical activ-
ity levels, next to educational approaches.
4
The
ANGELO-framework (Analysis Grid for Environments
Linked to Obesity) has been used to identify possible
environmental determinants and interventions regarding
physical activity in addition to dietary interventions,
since both are important energy-balance related behav-
iors.
4
According to the ANGELO-framework, 4 types of
environment can be distinguished: the physical environ-
ment (eg, existing sport facilities in the neighborhood),
the sociocultural-environment (eg, infuence from
family or friends), the political environment (eg, rules
and laws on physical education), and the economic
environment (eg, costs of sports activities).
5
Economic interventions seem particularly promis-
ing for people with low income, since pricing strategies
might reduce economic barriers to take part in sports
activities. Economic forces are hypothesized to have an
especially strong, but often neglected, infuence on phys-
ical activity, including taking part in sports activities.
6,7

Although pricing strategies have proven to be effective
in other domains (such as smoking and diet),
3,8,9
eco-
nomic interventions to increase participation in sports
activities have received little consideration to date and it
is still unknown how such interventions should be imple-
mented successfully.
4,6,7
Nor is there research investigat-
ing the importance of economic restraints for participa-
tion in sports activities among low income groups.
To assess the potential value of economic interven-
tions targeted at participation in sports activities (for
example playing basketball, going to a ftness club or do
swimming as an exercise) among low-income people, the
frst aim of this preliminary qualitative study was to inves-
tigate economic barriers to participate in sports activities
through the perceptions of low-income people. The
second aim of the study was to identify promising pricing
strategies from the perspective of low-income people.
Steenhuis, Nooy, and Moes are with the Institute of Health Sci-
ences, VU University Amsterdam, Netherlands. Schuit is with
the Dept of Public Health and Forecasts, National Institute for
Public Health and the Environment, Bilthoven, Netherlands.
The Perceptions of People of Low Income 717
Methods
As yet very little is known about the subject, we used a
qualitative design to explore possible relevant issues
regarding pricing and pricing strategies of sports activi-
ties among the target group. The data were collected by
means of semistructured individual interviews. With
this qualitative method, we could gain understanding of
potential economic barriers and the underlying issues.
Further, a qualitative design allowed us to explore atti-
tudes and feelings toward different pricing strategies.
Because of the sensitivity of the subject (ie, talking
about one’s personal fnances is considered a delicate
matter in the Netherlands), we chose for individual
interviews in a familiar environment.
Respondents
Inclusion criteria were 21 years or older and having a
low educational level (only primary education or gen-
eral secondary education and junior secondary voca-
tional education at a lower level). Educational level is
the most frequently used indicator for socioeconomic
status in the Netherlands.
10
In addition, information
about the respondents’ occupation was asked, and this
was classifed according to the Dutch Standard Classif-
cation of Occupations which is based on the Interna-
tional Standard Classifcation of Occupations (ISCO).
11
In total, 27 respondents were interviewed, 19
females and 8 males. Age ranged from 23 to 50, with a
mean age of 39.1 (SD 6.8). Most respondents lived
together with someone else (n = 25) and were of Dutch
ethnicity (n = 25). Almost half of the respondents were
unemployed (n = 13), 9 had an occupation classifed as
low level (eg, cashier in a supermarket), and 5 respon-
dents had an occupation classifed as middle level (eg,
crane driver). The majority of the respondents were cur-
rently not involved in sports activities (n = 24).
Procedure
Respondents were recruited through key-persons (ie, pri-
mary school teachers, employees of municipal services,
general practitioners, physiotherapists) in 2 medium sized
towns in the Netherlands. The key-persons were instructed
to recruit adults with a lower socioeconomic status. In
addition, the general practitioners and physiotherapists
were asked to not only recruit patients who were cur-
rently under treatment for health problems. Obviously,
people with an acute illness were excluded from the
study. Next in the recruitment procedure, socioeconomic
status was checked among the respondents themselves,
using educational level as an indicator for socioeconomic
status. After that, an appointment was made for an inter-
view. The interviews were conducted at the respondents’
home. Respondents received a small reward for their par-
ticipation (ie, free tickets for the swimming pool).
Interview Topics
The ANGELO-framework was used as theoretical
framework for this study. Barriers in the economic, phys-
ical, and sociocultural environment were investigated, as
well as possible interventions in the economic environ-
ment. Although the main focus of this study were the
economic barriers and interventions, barriers in the
physical (eg, available facilities) and sociocultural envi-
ronment (eg, infuence from family and friends) were
included as well to gain insight in the relative importance
of fnancial barriers. For the same reason, respondents
were asked about some possible individual barriers (eg,
time constraints and health issues) to take part in sports
activities, as opposed to environmental barriers. An addi-
tional advantage of including more topics than fnancial
issues alone was that respondents were not prompted
that fnancial issues were the central issue of interest.
Table 1 presents the main interview topics. First,
barriers to participate in sports activities were asked
with an open-ended question, without mentioning the
question categories or sub topics mentioned in Table 1.
Table 1 Interview Topics
Question categories
based on ANGELO
framework
Sub topics within
category
Economic environment • subscription costs
• costs for clothing &
equipment
Physical environment • perceived availability of
sports facilities
Sociocultural environment • norms and support of
family and friends
Individual barriers • time constraints
• exhaustion
• health issues
Economic environment:
interventions
• 50% discount on mem-
bership of ftness or sports
club
• discount during off peak
hours for the ftness club
• free 1 month trial for the
ftness club
• discount on membership
of ftness or sports club for
1 year, under condition of
average weekly participa-
tion
• free entrance to swim-
ming pool during specifc
hour
• discount on sports cloth-
ing and equipment
• free sporting facilities at
work.
718 Steenhuis et al
After that, respondents were asked to comment on sev-
eral possible barriers mentioned by the interviewer,
including the fnancial barriers (both money for sub-
scription to a ftness club or sports club as well as money
for sports clothing or other equipment), and the other
barriers (see before). Again, frst an open-ended ques-
tion was asked about the question category in general. If
certain sub topics were not discussed spontaneously by
the respondent, the topics were introduced by the inter-
viewer. Next, the respondent’s opinion was asked about
a number of different pricing strategies, including a
50% discount on a membership of the ftness or sports
club, a discount during off-peak hours for the ftness
club, a free 1 month trial for the ftness club, a discount
on a membership of the ftness or sports club for a year
under the condition of an average weekly participation,
free entrance to the swimming pool during a specifc
time per week, discount on sports clothing and equip-
ment, and free sporting facilities at work. These prede-
termined strategies were formulated by the research
team and were based on considerations regarding feasi-
bility in the future, alignment with current marketing
practices of ftness clubs (for example discount during
off peak hours) or alignment with new trends in the
Netherlands (for example offering sporting facilities at
work). Finally, respondents were asked their most pre-
ferred pricing strategy and to describe other ideas for
pricing strategies.
Analysis
The interviews were audio taped and full transcripts
were made. The framework approach was used to ana-
lyze the data.
12
The framework approach is especially
suitable for policy-relevant qualitative research. It starts
deductively from a preset theoretical background and
objectives, but also uses inductive analysis to refect the
original discussions.
12
The analysis consisted of several
phases and started with familiarization with the data
through reading the transcripts. After that, a thematic
framework was identifed in 2 steps: a) deductively (by
using the different types of barriers and the different
types of pricing strategies determined on beforehand as
themes); and b) inductively (by identifying additional
themes deriving from the data). Next, the data were
indexed using this thematic framework. The last phase
in analysis consisted of rearranging the data per theme
and interpreting and summarizing it. For indexing and
rearranging the data per theme we made use of ATLAS.
ti software (version 5.2).
Results
Financial Barriers
The results are summarized in Tables 2 and 3. The
majority of the respondents experienced fnancial barri-
ers to participate in sports. This accounts for unem-
Table 2 Barriers to Participate in Sports,
Main Results
Barriers
Sub topics within
category
Economic environment • subscription costs
• fnancial prioritization
of sports activities for
children
• additional costs besides
membership and clothing
& equipment
not able to choose favorite
sport
Physical environment • no perceived barriers
Sociocultural environment • no perceived barriers
Individual barriers • time constraints
• baby-sit during sports
• perceptions of physical
appearance
Table 3 Pricing Strategies, Main Results
Pricing
strategy ++ –
50% discount on
membership of
ftness or sports
club
• motivating • for some
people still too
expensive
Discount during
off peak hours
for the ftness
club
• suitable for
some people
• less freedom to
choose schedule
• fore some
people still too
expensive
Free 1 month
trial for the ft-
ness club
• motivating • quitting after 1
month
Discount on
membership of
ftness or sports
club for 1 year,
under condi-
tion of average
weekly partici-
pation
• motivating
• reasonable con-
ditions
• too pushy
• time span too
long
Free entrance to
swimming pool
during specifc
hour
• attractive
Discount on
sports clothing
and equipment
• attractive • increase of
sports activities
doubtful
Free sporting
facilities at work
• convenient
• motivation by
coworkers
• spending too
much time at
work
• privacy toward
coworkers
The Perceptions of People of Low Income 719
ployed respondents as well as for employed respondents
(regardless level of occupation). Most respondents
already brought up the high costs of sports while
answering the open-ended question about barriers:
“It’s way too expensive. That’s the number one
cause.”
The costs for membership of the ftness or sports
club were a greater problem than the costs for clothing
and equipment. Although costs for clothing and equip-
ment were perceived as rather high, respondents indi-
cated that this was not an important barrier to participate
in sports activities since these costs were incidental and
solvable in a rather cheap way (for example by buying
sports clothing in second hand shops). Roughly, 3
groups of respondents could be distinguished: a group
who could not afford any money to spend on sports
activities; a group who could spend a little money on
sports activities, but not enough to actual pay a member-
ship for a ftness or sports club on a regular basis; and a
group who could afford a membership of a cheap facil-
ity. Among the group unable to afford any money were
no respondents with an occupation classifed as medium
level. Further, unemployed respondents were more or
less equally represented in all 3 groups. In addition,
respondents with children prioritized spending money
for their children instead of sports activities for
themselves.
“However, it’s pricey. If you spend money for your-
self, you cannot spend it for your children.”
In addition, parents indicated that they were willing
to spend money on sports activities for their children.
“Sport is important. If my child practices a sport,
I want to help her. I mean: if she puts in a lot of
energy, I would be willing to spend money on it.”
Besides subscription costs and costs for clothing
and equipment, some respondents mentioned additional
costs resulting from participating in sports activities as a
problem, such as the costs for having a drink afterward.
Furthermore, respondents reported that they did not feel
able to choose their favorite sports activity due to fnan-
cial barriers. Some people did not fnd a cheap alterna-
tive and therefore did not perform any sports; others
chose a cheaper activity such as running.
Other Barriers
Time constraint was also considered to be an important
barrier to participate in sports, both for employed and
unemployed respondents. Taking care of the family and
children was reported to be very time-consuming.
Respondents with children experienced diffculties
organizing a baby sitter while they were doing sports.
Again, they could not afford to pay someone for baby
sitting. In addition, being exhausted after a day of work
was for some respondents a barrier to participate in
sports activities. Another barrier to go to a ftness club
mentioned by some respondents was their physical
appearance. Being overweight, they would feel uneasy
in a ftness club with mostly slim and trained people:
“I would go to the gym to loose weight, because
I am too fat. . . . If I would only be confronted
with string beans over there, I’ll be gone. I’ll feel
uneasy.”
Although some respondents did experience certain
chronic health problems, only few respondents men-
tioned health problems as an important barrier to par-
ticipate in any kind of sports activities. Almost all
respondents perceived that there were enough sports
facilities available within a reasonable distance and they
experienced no barriers regarding sport facilities. In
addition, most respondents did not experience barriers
related to their sociocultural environment to participate
in sports activities. Sometimes, a positive infuence of
the sociocultural environment was reported (motivating
each other by doing a sports activity together), and in
other cases the sociocultural environment was neither
stimulating, nor a barrier. Another aspect appeared to be
fnancial barriers of people in the sociocultural environ-
ments of respondents:
“One of my friends, she doesn’t have enough
money right now. Before, I always went together
with her. I hope she’ll go again to the gym in the
future. I now go with another friend; of course
going together motivates me.”
Pricing Strategies
Respondents welcomed the idea of pricing strategies to
stimulate participation in sports activities. Most respon-
dents actually would like to do more sports and the pric-
ing strategies could help them. Respondents were posi-
tive about a pricing strategy that would consist of a 50%
pricing discount on the subscription to the ftness or
sports club.
“Then it’s affordable, that’s very welcome. In that
case, I would have gone already. “
However, some respondents could not spend any
money on sports and it still remained too expensive for
them after a 50% discount. This was especially true for
some of the unemployed respondents. On the whole,
respondents agreed that such a discount would motivate
them to participate more in sports activities. Different
opinions were observed about a discount for a year under
the condition of an average weekly participation. Around
half of the respondents had a negative opinion on this
pricing strategy, mainly because they perceived this strat-
egy as too pushy and the time span of a year too long.
“I would perceive that as negative pressure, so I
would not participate.”
720 Steenhuis et al
The other half of the respondents had a positive
opinion since they perceived this pricing strategy as moti-
vating and a weekly average participation as reasonable.
The respondents’ opinion on a discount during off-
peak hours was less positive. Again, some respondents
could not afford to spend any money on sports, but also
work during off-peak hours and the freedom to choose
your own schedule were mentioned as reasons to be less
positive about this pricing strategy. However, for some,
mostly unemployed respondents, this was a suitable and
attractive strategy.
Respondents were rather positive about the option
of a 1 month free trial for a ftness club. Most respon-
dents indicated it would motivate them to try the ftness
club 1 month and probably continue afterward.
“I would love that. Then I’ll know if I like it or not.
. . . If I feel comfortable and relaxed, I’ll stay there
after the free trial month.”
However, a few others indicated on beforehand to
quit after the free 1 month trial.
Mixed opinions were expressed by the respondents
about a discount on sports clothing and equipment.
Although such a discount was perceived attractive (if at
least 25% according to the respondents), it is question-
able if respondents would increase their sports activities
because of it.
Mixed opinions were also found regarding free
sport facilities at work. Some of the employed respon-
dents had a positive opinion on this because sport at
work was perceived convenient and respondents felt
motivated by doing sports activities together with their
coworkers. Others were negative because they already
spent a lot of time in their work environment and wanted
to go home straight away after work. Some respondents
also did prefer not to practice sports with their cowork-
ers, because of privacy reasons.
One hour free entrance at the swimming pool every
week would be appreciated by the majority of respon-
dents, and most respondents indicated they actually
would go to the swimming pool.
Other possible strategies brought up by the respon-
dents were free trials of different sports clubs in their
neighborhood, a discount on sports facilities provided
by health insurance companies, free sporting facilities
provided by municipal services for unemployed
people, and ‘group discounts.’ Doing sports activities
with friends was motivating according to respondents,
and this could be rewarded by some sort of ‘group dis-
count.’ Another aspect mentioned by a couple of
respondents was that sports activities for example
organized in community centers, specifc for people
with a lower socioeconomic status, were perceived as
inferior and of less quality compared with regular ft-
ness and sports clubs.
Discussion
Goal of the study was to explore the importance of costs
with respect to participation in sports activities and to
gain insight in preferences for pricing strategies defned
by low-income people.
Finances indeed appeared to be an important bar-
rier for participating in sports activities, as Hill and col-
leagues
7
and Pratt and colleagues
6
already proposed in
their theoretical frameworks. The respondents want free
or low cost opportunities to be physically active. How-
ever, since other, individual barriers are also present,
changing the economic environment alone will not lead
to the necessary behavioral change. Time perceptions
and prioritization of sports activities should also be
changed among the target group, as well as some practi-
cal barriers such as child care during sports activities.
Opposite to the economic environment, the physical and
sociocultural environments were not considered as a
serious barrier to participate in sports activities. There-
fore, it seems that interventions should mainly be tar-
geted at the economic barriers and the individual barri-
ers mentioned before. However, this fnding should be
interpreted with caution, as other studies did found a
relation between physical activity and the physical envi-
ronment.
4
Our study did not examine associations with
actual participation in sports activities.With respect to
pricing strategies, respondents had a positive attitude
toward pricing strategies in general. However, the most
favorable and suitable pricing strategy differed among
respondents. When implementing pricing strategies, it
is advisable to tailor the strategies to individual needs
and preferences, and to offer various alternatives to
choose from. Overall, a discount on the subscription to
the ftness or sports club, a 1 month free trial and free
entrance to the swimming pool once a week seemed to
be most favorable according to the respondents, while
other strategies received mixed judgments. Although a
lot of respondents said they would try several pricing
strategies if offered, it is still unknown how they actual
would react on such an offer. The results refect the
opinions of respondents about the different pricing
strategies. However, it must be noted that the strategies
were formulated on beforehand by the research team,
and were not selected by the respondents themselves,
which can be seen as a limitation of this study.
This was a frst, explorative, qualitative study into
perceptions of low-income people about fnancial barri-
ers and pricing strategies related to physical activity.
Educational level was used as an indicator for socio-
economic status. However, we did not ask level of
income. It could be that respondents, despite their low
educational level, did have a middle income level. Infor-
mation about the occupational level of respondents indi-
cated that this might have been the case for 5 respon-
dents. Because of the small number of people included in
The Perceptions of People of Low Income 721
the study and the non representative sample, results must
be interpreted with caution and should be further investi-
gated. For example, men were underrepresented in our
study. They might be interested in different kinds of
sports activities than women, and therefore prefer other
pricing strategies. A next step could be to conduct a quan-
titative survey among a large representative sample of the
target group with the results of the underlying study as
input for the survey questionnaire. Not only will it be
possible to include underrepresented groups such as men,
but it also will gain further insight in the number of
people experiencing comparable problems to fnance
sports activities and the most popular pricing strategies
among a representative sample of the target group.
Another step could be to experiment on a small scale with
some promising pricing strategies, to assess their effec-
tiveness. Based on the results of the underlying study, it is
recommended to target subscription costs together with
perceived individual barriers in such a small scale experi-
ment. A joined effort of ftness and sport clubs or swim-
ming pools together with governmental organizations
could result in for example a free month trial, followed by
a subsidized membership. Perceived individual barriers
could possibly frst be targeted in an educational program
(for example about ftting in sports activities in daily life,
despite exhaustion or time restraints) followed by offer-
ing more facilities in the future (for example for child
care during sports activities).
Another limitation of the study that has to be taken
into account is the fact that participating in sports activi-
ties only account for a small part in ones total level of
physical activity. Transportation and physical activity
during occupation or daily activities are also important
factors. However, participation in sports activities might
be especially suitable to infuence with pricing strategies,
and therefore we focused on this aspect in current study.
Conclusions
Pricing strategies may be a promising strategy to increase
physical activity levels of low-income people. However,
this study indicates that this strategy should be coupled
with a strategy directed at individual barriers. The choice
of pricing strategy needs some further exploration.
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