Wednesday, February 29, 2012

Fed: Lump sum gym payments no workout motivator: study


AAP General News (Australia)
04-10-2007
Fed: Lump sum gym payments no workout motivator: study

By Tamara McLean, National Medical Writer

SYDNEY, April 10 AAP - People who fork out for the gym fortnightly rather than annually
will turn up for workouts more often, according to new Australian research.

Behavioural specialists say that members who pay an up-front yearly fee go less frequently
because they don't have a regular reminder of their commitment printed on their bank statements.

A team from the University of Wollongong compared people who paid for a year's gym
membership in advance to those who signed a contract but paid by fortnightly salary deductions.

The results, published in the international journal Marketing Theory, showed annual
payers worked out five times a month on average, compared to eight monthly visits for
those on fortnightly schedules.

This second group were motivated by regular reminders of the real cost of missing a
visit, said Professor Sandra Jones from the university's Centre for Health Behaviour and
Communication Research.

"People look at their payslip and think to themselves - 'I paid $20 this fortnight
and didn't get anything for it,' which motivates them to go to the gym more often and
get their money's worth," Prof Jones said.

"But if they pay in advance it isn't until they get the renewal bill at the end of
the year that they realise how much money they've 'wasted' and by then they are out of
the habit of exercising."

This proves that the method of gym payment can seriously affect people's activity levels
- in this study, at least - by up to 50 per cent.

The findings have important implications for the promotion of physical activity and
support a change in the way gyms operate, the researcher said.

"I am not suggesting that facilities shouldn't charge up-front fees, as these are often
necessary to cover equipment and running costs," Prof Jones said.

"But since we seem to be dealing with a reminder mechanism, up-front payers could be
sent a regular reminder of what the last month has, in effect, cost them and encouraging
them to make full use of their membership."

This would benefit gyms, too, because members who attend more regularly are more likely
to sign up for another year, she said.

These results come a month after the release of shocking US statistics showing gym
customers consistently chose contracts that cost them twice as much as they need to spend.

The analysis of 8,000 memberships estimated that Americans waste $US18.76 billion ($A23
billion) a year paying not to go to the gym while Australians throw away $1.5 billion.

AAP tam/lh/de

KEYWORD: GYMS

2007 AAP Information Services Pty Limited (AAP) or its Licensors.

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