Recently, Professor Mike Chao and co-authors published groundbreaking research, titled “Power Distance Belief Decreases Risky Recreation Consumption via Sensation Seeking,” in the Journal of Vacation Marketing.

This study sheds light on the rapidly expanding global market for adventure-based activities—such as bungee jumping, skydiving, and scuba diving—which are characterized by risk and stimulation. According to data from Statista (2023), the global market size for adventure activities surpassed $280 billion in 2021, with an anticipated annual growth rate of 15% through 2030. Notably, regional market development varies significantly—Europe accounts for approximately 40% of the market share, whereas the Asia-Pacific region remains comparatively limited. This disparity prompts critical inquiry into the role of cultural differences in shaping individuals’ preferences for adventure activities.

The research adopts "Power Distance Belief (PDB)"—a key cultural dimension—as a focal point to systematically explore how cultural factors influence individual consumption behaviors in adventure activities. PDB reflects the degree to which individuals accept and expect societal inequalities in power distribution. Findings indicate that individuals with high PDB tend to conform to social structures and rules, prioritizing stability and order, thus participating less in adventure activities; conversely, those with low PDB are more inclined to seek novelty and stimulation, making them more likely to engage in adventurous pursuits.

Further investigation reveals the underlying psychological mechanism—sensation seeking. High PDB individuals, driven by a desire for social stability, generally exhibit stronger risk-aversion tendencies and lower sensation-seeking propensity, which diminishes their demand for novel and stimulating experiences, thereby reducing their likelihood of participating in risky endeavors.

The study demonstrates that the adventurous inclinations of high PDB individuals are not fixed. When individuals perceive high socioeconomic mobility and believe that personal effort can improve their economic status, high PDB individuals gain confidence and motivation to take risks, leading to increased participation in adventure activities. Conversely, perceptions of economic stagnation tend to suppress their adventurous tendencies.

Validated through a comprehensive survey and five experimental tests across various types of adventure activities, the research demonstrates high theoretical rigor and practical relevance. The findings extend academic understanding of how cultural values influence consumer behavior and offer valuable insights for the adventure activity industry—businesses can tailor marketing communication and experiential strategies based on consumers' cultural traits and psychological motivations, fostering more targeted and effective engagement.

Mike Chao

PhD
Professor of Marketing
Academic Director of GDBA Program (Asia Track)

Dr. Mike Chao is a seasoned academic and accomplished marketing expert with a diverse and extensive background in higher education and research. He earned his Ph.D. in International Business and Marketing from Saint Louis University, where his dissertation focused on the impact of international and product diversification on multinational corporations’ (MNCs’) performance. He also holds an MBA from University of Missouri - Columbia.

Dr. Chao has an impressive publication record, with research articles published in leading academic journals such as Journal of Consumer Psychology, Journal of International Marketing, and European Journal of Marketing. His work often explores topics at the intersection of consumer behavior and branding, with a strong emphasis on the effects of cultural factors on marketing strategies. In addition to his journal articles, Dr. Chao has contributed book chapters and delivered presentations at prominent international conferences, establishing himself as a thought leader in his field.

Over the course of his academic career, Dr. Chao has held esteemed positions at various institutions. At Baruch College, City University of New York, he served as an Assistant Professor in International Marketing, enriching students' learning experiences with his industry insights. Later, at William Paterson University, he served as an Associate and Tenured Full Professor of Marketing, where he contributed to curriculum development and led the operations of the Russ Berrie Institute for Professional Sales as the Institute Director. Currently, Dr. Chao is a Professor of Marketing at emlyon business school, where he continues to inspire future business leaders with his expertise in marketing strategy, academic consumer behavior research, and global market trends.