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Casino marketing, problem gamblers or loyal customers?

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  • Prentice, Catherine
  • Wong, IpKin Anthony

Abstract

This paper draws upon the research gap identified in the current gaming literature, investigates the relationships among the commonly practiced customer acquisition and retention strategies in casinos, gambling behaviors, customer loyalty and problem gambling. In particular, the study examines the mediating role of gambling behaviors in the relationship between the strategies and problem gambling or customer loyalty. Gambling behaviors selected for this testing are length of stay, gambling frequency and budget, and average betting. These behaviors and the relevant criteria are consistent with those applied in casinos to assess customer profitability and lifetime value. This investigation involves two studies and was undertaken at 30 major casinos in the gaming capital — Macau. The first study aims to identify customer acquisition and retention strategies in casinos and the second is focused on hypotheses testing. Results from testing the hypotheses using various statistical techniques in the second study confirm some proposed relationships and fail to support others. The findings have significant implications for the relevant literature as well as for practitioners.

Suggested Citation

  • Prentice, Catherine & Wong, IpKin Anthony, 2015. "Casino marketing, problem gamblers or loyal customers?," Journal of Business Research, Elsevier, vol. 68(10), pages 2084-2092.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:10:p:2084-2092
    DOI: 10.1016/j.jbusres.2015.03.006
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    References listed on IDEAS

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    1. Max W. Abbott & Dave Clarke, 2007. "Prospective Problem Gambling Research: Contribution and Potential," International Gambling Studies, Taylor & Francis Journals, vol. 7(1), pages 123-144.
    2. Prentice, Catherine, 2014. "Who stays, who walks, and why in high-intensity service contexts," Journal of Business Research, Elsevier, vol. 67(4), pages 608-614.
    3. Wong, IpKin Anthony & Dioko, Leonardo (Don) A.N., 2013. "Understanding the mediated moderating role of customer expectations in the customer satisfaction model: The case of casinos," Tourism Management, Elsevier, vol. 36(C), pages 188-199.
    4. Desmond Lam & Richard Mizerski, 2009. "An investigation into gambling purchases using the NBD and NBD–Dirichlet models," Marketing Letters, Springer, vol. 20(3), pages 263-276, September.
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    Cited by:

    1. Prentice, Catherine & Dominique-Ferreira, Sergio & Ferreira, Andreia & Wang, Xuequn (Alex), 2022. "The role of memorable experience and emotional intelligence in senior customer loyalty to geriatric hotels," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    2. Prentice, Catherine, 2016. "Leveraging employee emotional intelligence in casino profitability," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 127-134.
    3. Tuguinay, Jovanie A. & Prentice, Catherine & Moyle, Brent, 2022. "The influence of customer experience with automated games and social interaction on customer engagement and loyalty in casinos," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    4. Prentice, Dr Catherine, 2019. "Managing service encounters with emotional intelligence," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 344-351.
    5. Xinjia Huang & Yang Zhang & Chaojun Li, 2022. "Assessing the Compensatory Potentiality of Hot Spring Tourism in the COVID-19 Post-Pandemic Environment," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
    6. Nader T. Tavassoli & Matteo Visentin, 2022. "To buy or how much to buy? Partition dependence in purchase-quantity decisions," Marketing Letters, Springer, vol. 33(2), pages 177-188, June.
    7. Ji, Chunli & Prentice, Catherine, 2021. "Linking transaction-specific satisfaction and customer loyalty – The case of casino resorts," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    8. Sharon Lawn & Candice Oster & Ben Riley & David Smith & Michael Baigent & Mubarak Rahamathulla, 2020. "A Literature Review and Gap Analysis of Emerging Technologies and New Trends in Gambling," IJERPH, MDPI, vol. 17(3), pages 1-20, January.
    9. Prentice, Catherine & Wang, Xuequn & Loureiro, Sandra Maria Correia, 2019. "The influence of brand experience and service quality on customer engagement," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 50-59.

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