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Article
Publication date: 16 October 2009

Sudhir H. Kale and Mark T. Spence

Most of the growth in casino expansion for the foreseeable future will take place in Asia. Western casino operators appreciate the immense opportunities afforded by the…

Abstract

Purpose

Most of the growth in casino expansion for the foreseeable future will take place in Asia. Western casino operators appreciate the immense opportunities afforded by the Asian markets, but judging by their performance abroad some have not adapted in ways necessary to survive and prosper. The purpose of this paper is to expose key differences between Asian and Western gaming jurisdictions. In light of these differences, it is a serious mistake for Western casino executives to follow an ethnocentric approach when planning marketing activities and customer service initiatives for Asian customers. To rectify this situation, a framework is advanced that will assist Western operators to adapt to Asian markets.

Design/methodology/approach

Differences between Asian and Western gamblers in both their game preferences and behaviours are based upon cited data sources and upon the authors' observations during flied trips to various casino jurisdictions. When appropriate, insights gleaned from a series of informal interviews conducted with senior executives in Macau as well as gaming‐related consulting conducted by the authors in both Asia and North America are shared, albeit for legal reasons the sources are confidential. The TROPICS framework presented herein was developed by the lead author and presented to senior gaming executives at the University of Nevada, Reno 2008 executive development program. The seven elements of this framework – now refined – are targeting, retention, organization, people, incentives, culture, and systems.

Findings

This paper concludes that in order to better serve Asian markets, there is an urgent need to empirically assess patron behavior and the attendant casino marketing adaptations that will be required to succeed in these markets.

Practical implications

A series of questions and issues related to each of the seven elements in the TROPICS framework are raised. The proposed framework is equally applicable to firms operating in Western countries as well as those in Asia; however, when put into practice, the outcome will be different marketing strategies adapted to each casino's market structure and macro‐environment. Regardless of context, this systematic approach to strategy formulation will ensure consistency and alignment across various elements of strategy.

Originality/value

The paper identifies the differences between Asian and Western gamblers to assist Western operators to adapt to Asian markets.

Details

Worldwide Hospitality and Tourism Themes, vol. 1 no. 4
Type: Research Article
ISSN: 1755-4217

Keywords

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Article
Publication date: 13 January 2021

Matthew Tingchi Liu, Shiying Dong and Mingxia Zhu

The study aims to integrate the insights gained from the gambling industry into a value creation conceptual framework for analyzing the influence of digital technology…

Abstract

Purpose

The study aims to integrate the insights gained from the gambling industry into a value creation conceptual framework for analyzing the influence of digital technology application. Both primary and secondary data from industry practitioners are examined and discussed.

Design/methodology/approach

In-depth interviews covering top management from six major casinos in Macau were conducted with industry experts, who provided the pioneering feedback on digitalization technology implemented with examples from major casino cities, including Macau, Las Vegas, Monte Carlo, Singapore, Seoul and some others.

Findings

The study provides an overview of the current status of the application of digital technology in the gambling industry and the level of the feasibility, practicability and profitability of this development on the casino floor. Digital technologies are found to augment the gambling industry in aspects of the product, service and operational structure. Research also discovers that benefits and values gained by the casino can be categorized in three dimensions: (1) value perceived by the customer, (2) value obtained from the customer and (3) value gained by the firm.

Originality/value

The research serves as a reference for Macau policymakers regarding regulations on emerging digital technologies in the gambling industry, as well as for casino management seeking to understand new potential business opportunities and future developments in digitalization.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 7
Type: Research Article
ISSN: 1355-5855

Keywords

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Article
Publication date: 4 November 2014

Eunju Suh and Matt Alhaery

This paper aims to, considering the potential to generate additional revenue from cross-gamers, identify variables predicting predominant slot-players’ propensity to play…

Abstract

Purpose

This paper aims to, considering the potential to generate additional revenue from cross-gamers, identify variables predicting predominant slot-players’ propensity to play table games, as well as predominant table-game players’ propensity to play slots (cross-game play). Casino marketers often promote cross-game play through game lessons and coupons for game trial.

Design/methodology/approach

Logistic regression analysis was performed on the player data provided by a destination hotel casino on the Las Vegas Strip. Furthermore, the authors described how to estimate propensity scores, the probability of cross-game play, at the individual level, using a logistic regression equation.

Findings

Comparisons of cross-gamers versus non cross-gamers indicated that the amount of play and gaming values of cross-gamers were much higher than those of slot-only players. The results of a logistic regression analysis show that a player’s cross-gaming propensity can be predicted using gaming-related behavioral data. More specifically, cross-gaming propensities were associated with the frequency and recency of casino trips, the amount of money won or lost in gaming, player values to the casino, the duration of play and the length of a customer–casino relationship.

Research limitations/implications

It is recommended that future research apply the model tested herein to other samples and investigate other predictor variables to develop a better predictive model for cross-game play.

Practical implications

The findings and the model introduced herein could help casino marketers identify players with cross-gaming propensity and develop more targeted strategies for customer-relationship management and database marketing.

Originality/value

This study is the first attempt to estimate the cross-gaming propensity at the individual level and offers detailed guidance on how to use the propensity scores for targeting specific customers.

Details

International Journal of Contemporary Hospitality Management, vol. 26 no. 8
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 13 November 2017

Catherine Prentice, IpKin Anthony Wong and Desmond Lam

This paper, from a marketing and management perspective, aims to review the relevant literature germane to casino studies. The review discusses the major findings from…

Abstract

Purpose

This paper, from a marketing and management perspective, aims to review the relevant literature germane to casino studies. The review discusses the major findings from previous studies, provides a critique and identifies research gaps for future studies. In particular, the research foci presented in this paper rest on the service profit chain (SPC) model. The review involves studies relating to the constructs of the chain model and comprises sections that are categorized based on the internal link between management and employees, interaction between casino service employees and customers and profitability link.

Design/methodology/approach

The approach used in the current study involves a systematic review of the relevant academic literature with a focus on SPC studies in the casino industry, along with critical evaluation and analysis to identify research gaps. Google Scholar, EBSCOHost, Science Direct, Emerald and other academic databases were used to search relevant studies relating to casino and gambling research streams.

Findings

The review identifies several research gaps on the basis of the SPC link. Specifically, internal service quality needs more attention from both the practice and research points of view. Casino employee research should be extended to include personal traits and characteristics that may contribute to employee performance and loyalty. In the interaction between casino service providers and gamblers, more studies should be undertaken on the efficiency and effectiveness of marketing initiatives and promotions. Externally, the paper points out that more appropriate measurement of customer loyalty and casino profitability should be explored.

Research limitations/implications

This review provides references to focusing on key competitive advantages and presents guidelines on improving business growth and profitability for casino managers. The paper also identifies research areas that future studies should attend to.

Originality/value

The paper is the first thorough literature review of gaming research on marketing and management with a focus on the SPC model. This review represents a new era of gaming research, extending the problem gambling research focus into a broader scope embracing other disciplines.

Details

International Journal of Contemporary Hospitality Management, vol. 29 no. 11
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 16 October 2009

Andrew Klebanow

Over the past several years, the term “Player Reinvestment” been used more frequently when describing the money and effort casinos expend in retaining profitable gaming…

Abstract

Purpose

Over the past several years, the term “Player Reinvestment” been used more frequently when describing the money and effort casinos expend in retaining profitable gaming customers. Most often, player reinvestment refers to the suite of benefits and offers that casinos give to various segments of their databases. The purpose of this paper is to examine the concept of player reinvestment.

Design/methodology/approach

The paper draws on the author's experience in the gaming industry as well as studies that have been done by his organization, Gaming Market Advisors.

Findings

This paper provides definitions for the components that make up player reinvestment, and how casinos measure those costs and the benefits that these investments contribute to their revenue streams. Further, the paper shows the range of expenditures that casinos in the US gaming market expend on fostering customer loyalty.

Practical implications

This paper is written by a gaming industry executive for gaming industry managers. It contains conceptual as well as specific information on how to manage a player reinvestment program.

Originality/value

The player clubs in casinos have to be looked at as an investment to bring existing players back to the casino. This paper explains the concept of player reinvestment, an emerging practice in casino management.

Details

Worldwide Hospitality and Tourism Themes, vol. 1 no. 4
Type: Research Article
ISSN: 1755-4217

Keywords

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Article
Publication date: 6 July 2012

IpKin Anthony Wong, Hoi In Veronica Fong and Matthew Tingchi Liu

This paper aims to investigate customers' perceptions of four service quality aspects – service environment, service delivery, game service, and food service – in the…

Abstract

Purpose

This paper aims to investigate customers' perceptions of four service quality aspects – service environment, service delivery, game service, and food service – in the casino setting among Chinese players.

Design/methodology/approach

The study examined the proposed model through a 2(gambler type: leisure versus hardcore)×2(gender: male versus female) multivariate analysis of variance of the four casino service quality aspects.

Findings

Based on a sample of leisure and hardcore casino players, the results show significant differences between the two types of patrons on the four casino service dimensions. In addition, significant gender‐by‐player interaction is revealed.

Research limitations/implications

This study sheds new light on the understanding of the direct and moderating roles of gender and type of casino players on service evaluation in the literature. The research findings should be interpreted with caution as the results are derived from a Vegas‐like casino in Macau among a mass‐market Chinese casino clientele.

Practical implications

The findings extend service research by illuminating perceptual differences in different casino service quality dimensions in the Asian leisure milieu. Casino operators should take customers' gender and player type into account and design service offerings that are more attractive to female and leisure consumers, as they represent a large potential casino clientele.

Originality/value

The findings extend the customer contact model and further the understanding in regard to the service quality perception in the burgeoning casino gambling industry in the Far East.

Details

International Journal of Contemporary Hospitality Management, vol. 24 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 16 October 2009

John Bowen

The purpose of this paper is to investigate the barriers to casino development, asking how they can be minimized, and how might casino resorts drive tourism growth most…

Abstract

Purpose

The purpose of this paper is to investigate the barriers to casino development, asking how they can be minimized, and how might casino resorts drive tourism growth most effectively?

Design/methodology/approach

An extensive review of literature on casino development is reviewed and analyzed.

Findings

This paper supports the proposition that casinos can be used to provide attractions that will benefit tourism destinations.

Practical implications

This paper provides useful insights for tourism planning, governmental management of gaming jurisdictions, and gaming executives on the social costs and benefits of gaming. The paper focuses on how to reduce the social costs and maximize the value created by the economic benefits.

Originality/value

The author proposes a model where future casino development should be required to support other entertainment options, such as live entertainment and restaurants at tourism destinations.

Details

Worldwide Hospitality and Tourism Themes, vol. 1 no. 4
Type: Research Article
ISSN: 1755-4217

Keywords

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Article
Publication date: 8 June 2015

Matthew Tingchi Liu, Tina Tsing Gya Chang, Edmund H. N. Loi and Andrew Chi Hong Chan

The viewpoints from industry briefly review the success in last decade, analyze what challenges and difficulties came across currently and forecast…

Abstract

Purpose

The viewpoints from industry briefly review the success in last decade, analyze what challenges and difficulties came across currently and forecast opportunities/development in next decade of Macau gambling industry. The paper aims to discuss these issues.

Design/methodology/approach

Practitioners from banking and gambling industries offered their cutting-edged analysis and viewpoints with scholars’ observation.

Findings

Macroeconomic and political factors in China are the principal direct cause of Macau’s gambling revenue decline in 2014, implicating the vulnerability and unsustainability associated with the VIP business model of gambling industry. Although Macau continues to face challenges since late 2014, the prospect of Macau gambling industry is still optimistic in the long term, as there are emerging positive catalysts which will boost demand. From casino operators’ perspective, they should continue to try to increase revenue from mass market and non-gambling business by relocating the resource and adding more non-gambling amenities.

Originality/value

This paper provides a fresh perspective, and a new line of thinking with regard to how gambling industry in Macau will develop in next decade since 2015. It therefore potentially directs a new path of research in the area.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 27 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

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Article
Publication date: 7 October 2014

Matthew Tingchi Liu, Ipkin Anthony Wong, Chu Rongwei and Ting-Hsiang Tseng

This study aims to investigate how perceptions associated with corporate social responsibility (CSR) initiatives influence customers’ preference and loyalty in a…

Abstract

Purpose

This study aims to investigate how perceptions associated with corporate social responsibility (CSR) initiatives influence customers’ preference and loyalty in a controversial consumer market. The mediating effect of brand preference between perceived CSR initiatives and customer loyalty is also examined.

Design/methodology/approach

The methodology in the current study involves the use of questionnaire surveys delivered to a convenience sample in the city of Macau in 2012. A total of 616 valid samples were collected among casino players in a high bet limit area in six major casinos. Regression analysis was used to test the hypotheses formulated for carrying the study forward.

Findings

The findings indicated that customers’ brand preference can be enhanced by their perceptions on CSR. Two CSR initiatives (stakeholders and society) significantly increase loyalty intention, although to varying degrees. The impact of CSR on stakeholders has a stronger influence on customers’ brand preference. Another important finding of the current study is the fact that brand preference is a partial mediator of perceived CSR initiatives and customer loyalty.

Research limitations/implications

This study verified the relationship among CSR initiatives perception, brand preference and loyalty intention in the context of the Macau gaming industry. Perceived CSR initiatives enhance customer loyalty. Additionally, this study found a partial mediating effect of brand preference between CSR perception and customer loyalty.

Practical implications

Customer loyalty can be enhanced with companies’ appropriate investments in social responsibilities. Although a socially responsible brand image of a company is not guaranteed to be a competitive advantage that attracts more premium customers, there is a general consensus that it may result in the latter with appropriate CSR strategies involving the greatest attention directed toward improving stakeholders’ interests. From the marketing perspective, retaining premium customers with a higher brand preference level is a key to both long-term competitiveness and profitability.

Originality/value

This study investigates how premium customers’ perceived CSR initiatives of a casino influence their loyalty intention, and also examines how brand preference, as a mediator, influences the relationship between perceived CSR and loyalty intention. Extending the realm of CSR study to understand the linkage between CSR and customer behaviors is also important because multiple theories predict different benefits, and assessing the value of CSR, therefore, requires multiple approaches. Finally, evidence from the research is significant for researchers and practitioners, especially when working on conflicting issues.

Details

International Journal of Contemporary Hospitality Management, vol. 26 no. 7
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 1 February 2013

Sandy C. Chen, Stowe Shoemaker and Dina Marie V. Zemke

Slot machines and other machine gaming generate between 65 percent and 90 percent of a US casino's revenue. This article aims to examine the motivations, behaviors, and…

Abstract

Purpose

Slot machines and other machine gaming generate between 65 percent and 90 percent of a US casino's revenue. This article aims to examine the motivations, behaviors, and preferences of slot machine customers, and to develop market segments.

Design/methodology/approach

The study's objectives include: understanding the demographic, gambling motivation, and gambling behavioral characteristics of slot machine players; identifying important reasons for choosing one slot machine game over another; examining player attitudes and behaviors pertaining to progressive machines; and investigating player desire for theme‐based games. This was accomplished through an online survey of slot machine players.

Findings

Profiles of slot machine players are developed and the slot players are segmented into four clusters that explain motivations and game preferences.

Practical implications

This article fills in some of the gaps in understanding the gambling behavior of slot players. This study can help gaming machine manufacturers design new products and features to serve existing machine gaming customers and to attract new customers. Casino and other gaming operators can use this information not only to select the right types of machines to provide on‐site, but also to develop advertising and promotions to attract and retain new and existing customers for slot machines and other types of gaming machines.

Originality/value

This is the first published study that segments slot machine players from a marketing perspective and identifies their preferences, behaviors, and demographic groupings.

Details

International Journal of Contemporary Hospitality Management, vol. 25 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

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