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How patrons value casino promotional offers: A conjoint study

Author

Listed:
  • Mark Legg

    (Boston University, USA)

  • Murat Hancer

    (University of Central Florida, USA)

Abstract

Casinos rely extensively on free slot play (FSP) offers for incentivizing patron visitation. However, there has been a lack of understanding its influence on driving patron visitation and patrons’ valuation of FSP compared to other casino promotional offers. This study conducted a conjoint analysis on patrons’ valuations of FSP compared to other promotional offerings at a casino resort. Moreover, this study investigated the roles inter-casino competition and visitation frequency have on patrons’ perceived valuation of FSP through a hierarchical Bayes model. The results show that competition plays a significant negative role on patrons’ valuation of FSP, while competition held insignificant influence on patrons’ valuation of food and beverage (F&B) comp offers. Additionally, patrons who visited the casino more frequently valued FSP greater, while less active patrons valued F&B comp offers more. Using the study’s results, casinos can increase their margins through increased efficiencies with their promotional offering mix.

Suggested Citation

  • Mark Legg & Murat Hancer, 2020. "How patrons value casino promotional offers: A conjoint study," Tourism Economics, , vol. 26(4), pages 640-657, June.
    • Handle: RePEc:sae:toueco:v:26:y:2020:i:4:p:640-657
    DOI: 10.1177/1354816619858892
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    References listed on IDEAS

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    Cited by:

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    2. Mark Legg & Apostolos Ampountolas, 2024. "How music listening preferences play a role in casino showroom offers," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(3), pages 611-623, September.

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