Article

Measuring the effectiveness of casino promotions

June 2002
International Journal of Hospitality Management 21(2):189-202

Authors:

University of Houston

There is a lack of published research on the effectiveness of promotions in the leisure services industries. The substantial costs of promotions along with the lack of research prompted this study of casino promotions over a 6-month period. Data are examined via simultaneous regression analysis to determine the effectiveness of large-scale promotions. Promotional periods fail to significantly influence slot volume. The magnitude of prize money is positively related to slot volume, but fails to generate an economically significant impact. The methodology and results of this study will help the managers of leisure service businesses evaluate the effectiveness of their promotions.

Improving Casino Performance Through Enhanced Loyalty Programs

Article

Apr 2015

With increased competition and decreased revenues in the gaming industry, casinos have developed and modified their loyalty programs to attract new customers and build customer loyalty. However, often loyalty programs are not evaluated for their effectiveness. Using data from a Las Vegas casino resort, the effectiveness of a new casino loyalty program on gaming volume was examined. The study used time series multiple regression analysis with Autoregressive and Moving Average (ARMA) terms to analyze the effect of the new program on slot coin-in and table game drop. The results indicated that the loyalty program variable significantly increased slot coin-in at a rate of $302,455 per day, but did not significantly affect table game drop. With the findings and model developed in this study, operators can examine whether loyalty programs are producing the desired effects and develop strategies to improve their effectiveness.

Sales and Promotions in Registered Clubs: Management and Patron Perspective

Article

Full-text available

Nov 2014

Gianpiero Battista

This exploratory study investigated the perceived value of sales promotions for managers and members of six registered clubs on the Far North Coast of New South Wales (NSW), Australia. The study focused on non-gaming machine related sales promotions and explored their influence on members’ decision making process in relation to length of stay, expenditure and frequency of club visitation. A mixed methods approach was used comprising semi-structured interviews with six club managers, and questionnaires administered to 120 members of six clubs. It was found that most members felt encouraged to spend more money, stay longer and visit the venue more often because of promotional activities on offer. This was especially the case for interactive promotional activities. Sales promotions were perceived by club managers to be effective tool for increasing patronage, membership and revenue. A model of the role of sales promotions based on study findings is also presented.

Estimating the indirect contribution of sports books: Sports wagering as a driver of other in-house revenues

Article

The long-term impact of a loyalty program: An evaluation from a Las Vegas casino hotel

Article

Myongjee Yoo

Estimating the impact of showroom entertainment on the hourly gaming volume of a Las Vegas hotel-casino

Article

Jan 2010

Eunju Suh

Along with the emergence of mega casino-resorts in the gaming industry, researchers have attempted to estimate the indirect gaming contributions of non-gaming casino amenities such as showroom entertainment and restaurants. However, the daily data of aggregate gaming volumes analyzed in previous gaming research did not allow exploring transient gaming volumes associated with casino amenities during a much narrower range of time periods (i.e., hourly). The current investigation addresses this limitation by proposing a model to examine the relationship between showroom headcounts and hourly slot gaming volumes for the hours falling adjacent to the show’s performance time. Considering a major investment in showroom entertainment at many casinos, the current study will help casino operators evaluate the showroom’s slot gaming contribution.

Estimating the Impact of Free-Play Coupon Value on Players’ Slot Gaming Volumes

Article

May 2012

Eunju Suh

This study reports the results of a field experiment that assessed the relationship between free-play coupon value and a player’s slot gaming volume. Selected players in the customer database of a Las Vegas hotel casino received either a

50 or a

100 free-play incentive. Results indicated little effect of coupon value on a player’s slot volume. Indeed, the analysis found that complimentary rooms had a greater effect on coin-in, and complimentary food and beverage had the greatest effect of all. These findings imply that offering a relatively high incentive may not necessarily be more effective than providing a comparable lower incentive value in increasing a player’s slot gaming volume. Instead, casino managers should consider the overall profit picture from a given incentive and assess whether particular players are more responsive to complimentary amenities, such as room, food and beverage.

Uncovering the Service Profit Chain in the Casino Industry

Article

Feb 2017
Int J Contemp Hospit Manag

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.

Exploring Casino Special Events: An Empirical Analysis for Determining Which Themed Celebrations and Tournaments Have An Indirect Effect on Increasing Slot Volumes

Article

Full-text available

Oct 2015

This empirical study sheds light on the indirect effects of slot-player special events on casino revenues. Slot departments provide the largest gaming percentage profit for U.S. casinos, almost twice that of table-game departments, making it crucial to cultivate robust slot operations. Casino special events, which include culture-, recreation-, and sports-themed experiences as well as slot tournaments, are experiential marketing techniques used to sustain slot-player relationships and/or increase casino gaming volumes. This exploratory study uses multiple regression analysis to identify which special events, including the corresponding complimentary rooms, have significant indirect effects on slot machine wagers, providing a model for casino managers to predict their special events’ indirect effects on slot revenues.

Complimentary rewards in Las Vegas casinos: A literature synthesis and recommendations for profitable complimentary reward programs

Article

Katharine S Meczka

Estimating the Indirect Effect of Sports Books on Other In-House Gaming Volumes

Article

Full-text available

Jan 2011

Using data from a repeater market hotel in Las Vegas, Nevada, the relationship between sports book and slot machine revenues is examined. Daily sports book write and daily slot handle are compared over a 250 day period. Though many industry leaders theorize that sports book gamblers also wager in slot banks, the results of this Autoregressive Integrated Moving Average (ARIMA) analysis fail to demonstrate a statistically significant relationship between sports book write and slot coin-in at the 0.05 alpha cutoff. This study advances literature currently available by establishing the lack of such a relationship and disputing the generally accepted assumption that sports books produce a substantial indirect contribution to slot revenues. While the sports book does generate a fairly constant direct profit for the casino, the absolute value of that profit is minimal and the results of the study show there is no indirect profit contribution from sports books to slot machines. Given these results, casino management may want to consider that a sports book is not an optimal use of casino floor space. Introduction It is fairly easy to determine the direct cash flow contribution of a sports book to its casino property. The property's income statements provide a detailed look at the revenues and costs of managing the book. A sports book, however, requires many operational costs, such as large-scale technological upgrades or promotions like trips to major sporting events and high-end car giveaways. There are also potential opportunity costs – the casino could be using the space for more profitable amenities. The casino's decision to operate a sports book may not necessarily be maximizing their potential profit per square foot. It is possible, however, that the indirect benefits of having a sports book may justify the operational costs of such a facility. This study explores the effect of on-site indirect revenue generators by investigating sports books. Practical Significance Many industry leaders purport that sports gamblers take their winnings from the book and use them to play other in-house games and spend them on other property amenities (Lang & Roxborough, 1992; Manteris, 1993; Roxborough, 1996). The casino wants to optimize the allocation of space such that they will maximize their return on assets. Even if the sports book is slightly profitable, it may not be the optimal use of available floor space. While an income statement will report the direct revenue generated by the sports book, it will not provide any information on its indirect gaming contribution. Casino

Customer loyalty marketing research: A comparative approach between hospitality and business journals

Article

Jun 2013
Int J Hospit Manag

Marketing to the next generation of casino patrons

Article

Full-text available

Aug 2021

The expansion of gambling across the United States has made the gaming industry more competitive while the demographics of the gaming industry have evolved. Younger patrons are visiting casinos less frequently than their older counterparts, thus increasing the pressure to market to guests effectively. In this study, we investigate the differences in marketing, gaming, and entertainment preferences under the lens of Generational Cohort Theory (GCT). A survey with a discrete choice design was used to measure each generation’s gaming behaviors and marketing preferences, while a hierarchical Bayes model was used to examine intergenerational differences. The results show that younger cohorts have an increased preference for social-based gambling activities and greater preference for non-gaming offers. Considerations are noted with recommendations for the industry to help cultivate customer loyalty amongst the younger generations, which may ensure firm viability for years to come.

The prevalence of loyalty program use and its association with higher risk gambling in Australia

Article

Full-text available

Nov 2020

Background and aims Loyalty programs are implemented widely by gambling operators to provide customers with additional prizes and benefits for consistent patronage. The aim of this paper was to examine whether loyalty programs were more commonly reported by higher risk gamblers in large population studies conducted in Australia. Method This paper examines the prevalence of loyalty program use and the association with problem gambling in Australia using data from seven out of 13 public gambling prevalence surveys conducted over the last decade. Results Evidence drawn from six of these seven studies showed consistent positive association between loyalty card use and higher risk gambling in venue-based gamblers. At least 40% of problem gamblers reported loyalty card use compared with only around 10% of gamblers in general. Discussion These observations suggest that there is a need to conduct more focused investigations on the utilisation of loyalty programs by higher risk gamblers. Conclusions It will be important to examine whether loyalty programs encourage or extend gambling sessions, but also how they can be used to facilitate responsible gambling initiatives and inform further behavioural research.

How rational thinking style affects sales promotion effectiveness

Article

Jan 2020
Int J Hospit Manag

Despite the widespread use of “buy one get one free” (BOGOF) and “multi-unit price” (MUP, e.g., buy two get 50% off, 2 for

Y/2) promotions in the hospitality industry, no prior research has compared their effectiveness. The current study examines consumers’ purchase intention as a function of (a) BOGOF vs. MUP promotions and (b) rational thinking style, which reflects the level of capability and enjoyment of thinking analytically and logically. The results indicate that people low in rational thinking style exhibited a higher purchase intention toward BOGOF (vs. MUP) promotions while their counterparts high in rational thinking style were indifferent across the two promotion types. Further, this study identifies an important boundary condition. When the amount of savings (e.g., buy 2, save

Y/2) is salient in the MUP promotion, consumers low in rational thinking style are equally attracted to both types of offers. Theoretical and managerial implications are discussed.

Interest in inducements: A psychophysiological study on sports betting advertising

Article

Nov 2019
INT J PSYCHOPHYSIOL

Recent research has shown an association between the viewing of wagering advertising, which often presents inducements to gamble, and maladaptive sports-betting behaviours; however, the mechanisms underlying the development of the intention to gamble remains relatively understudied. Eye-tracking and tonic electrodermal activity was recorded from 59 participants (including 49 regular gamblers and 10 non-gamblers), while they watched a series of advertisements. Following each advertisement, participants were asked to rate how likely they would be to take up the offer presented, therein. The number of fixations placed on each offer differed according to the type of inducement shown (p < .001), with reduced risk and cash back inducements being looked at more often than better odds and bonus bet inducements by all groups. Increased electrodermal activity while viewing the advertisements was associated with greater severity of gambling-related harm (p < .001), as well as greater ratings of desire for most advertisements. Rating of desire was, likewise, positively associated with gambling-related harm (p < .001). These results may suggest that, while the offers in gambling advertisements may be looked at by most viewers, unless there in an attendant increase in arousal, it is quite unlikely that these inducements will elicit a desire to gamble. For individuals already at risk of gambling problems, exposure to these advertisements, especially those offering what is perceived to be safer betting options that minimise financial losses, may exacerbate existing harms. Such information may prove useful in guiding industry practice, government regulations, therapeutic interventions, and future research on this topic.

How patrons value casino promotional offers: A conjoint study

Article

Jun 2019

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.

The power of e-commerce: Does e-commerce enhance the impact of loyalty programs on hotel operating performance?

Article

Full-text available

Apr 2019
Int J Contemp Hospit Manag

Purpose This paper aims to offer empirical insights on how investing in e-commerce capabilities affects the relationship between loyalty programs and hotel operating performance so as to aid in identifying proper resource allocation strategies. Design/methodology/approach This study extended the model in Hua et al. (2015) by testing the interaction of e-commerce and loyalty programs. Findings The findings illustrate that proper allocation of company financial resources to e-commerce initiatives can help improve the impact of loyalty programs on hotel operating performance. Practical implications The results of this study illustrate that hotel performance can be improved by the synergy between loyalty program and e-commerce initiatives. Thus, hotel managers and owners can use results from this study to improve the efficiency of their asset allocation strategies, with five practical implications offered. Originality/value Theoretically, this study adapted and extended an integrative model of hotel operating performance (Hua et al., 2015) by identifying critical factors that elucidate the variance in firm performance. In addition, the moderating role of e-commerce provides a new conceptualization of information technology. Practically, this study makes several important contributions as well.

Loyalty programmes in the gambling industry: potentials for harm and possibilities for harm-minimization

Article

Full-text available

Jun 2018

Michael Wohl

The field of gambling studies has been remarkably silent on loyalty programmes in the gambling industry. This article reviews the scant empirical literature, with an aim to stimulate discussion and research about the impact of loyalty programme membership on players. Preliminary evidence suggests that disordered gamblers are more apt to join a loyalty programme and be disproportionately rewarded (due to the amount of money they spend gambling) relative to recreational and at-risk gamblers. As such, loyalty programmes in the gambling industry may generate harms in vulnerable individuals. However, loyalty programmes may also be well positioned to facilitate harm-minimization by promoting behavioural tracking that is collected on every member – information that can be provided to players to advance responsible gambling. Additionally, members could be rewarded for engagement with responsible gambling tools, which may increase the currently low rate of tool use. That said, structuring loyalty programmes to reward the use of responsible gambling instruments with time on device or even non-monetary prizes may be incompatible with harm-minimization efforts. There exists a need for empirical research on the antecedents and consequences of loyalty programme membership as well as the possibility that loyalty programmes have some responsibility gambling utility.

From gambling exposure to adaptation: Implications for casino sustainability

Article

Mar 2018
J Retailing Consum Serv

This paper draws upon the adaptation theory and discusses the impact of adaptation effect on casino business growth and sustainability. The study deploys secondary data and provides evidence for likely existence of the adaptation effect. This effect is derived from analyzing visitors’ profiles over 20 years from various sources. On the basis of this analysis, the study proposes various strategies including promoting casino tourism instead of gambling focus to sustain casino business. The current study lays foundation for sustainability research on the casino industry. Findings of this study have implications for researchers and practitioners in the gambling, tourism and hospitality fields.

The Role of Loyalty Programs in Healthcare Service Ecosystems

Article

Full-text available

Aug 2017

Purpose The purpose of this paper is to investigate the role of patient loyalty programs in healthcare environment, generally considered as a way to engage patients and potentially increase the perception of service quality of healthcare systems, but not systematically analyzed at the state of the art. Design/methodology/approach The Service Dominant logic and, in particular, the service ecosystem construct are adopted and integrated with relevant literature references and empirical studies on a sample of patients. Loyalty programs are interpreted as institutions coordinating actors of the healthcare service ecosystem. Findings A conceptual model linking loyalty programs to patients and healthcare providers’ co-creation practices, engagement, satisfaction, trust, and perception of service quality is build and explained based on literature and a case study, finding that loyalty programs can strengthen the adaptability and the well-being of a healthcare service ecosystem. Practical implications This contribution can have a significant impact on the design of new and the evolution of current healthcare service ecosystem, providing interesting insights to practitioners on the topic of loyalty programs, both for their development and their benefits. Originality/value The paper revised previous healthcare service ecosystems and highlights the role of the loyalty program institution at each level and between levels of the ecosystem.

Prevention of Problem Gambling: A Comprehensive Review of the Evidence, and Identified Best Practices

Book

Full-text available

Oct 2012

The past 15 years has seen a considerable amount of interest and effort being put into developing strategies to prevent problem gambling. Unfortunately, the development, implementation, and evaluation of most of these initiatives has been a haphazard process. Most have been put in place because they ‘seemed like good ideas’ and/or were being used in other jurisdictions, rather than having demonstrated scientific efficacy or being derived from a good understanding of effective practices in prevention.The primary purpose of the present document is to help change this state of affairs. More specifically, by: Proposing an etiological framework for understanding how problem gambling develops based on the available evidence and drawing from established models of addictive behaviour. Comprehensively evaluating the effectiveness of the various initiatives that have been used around the world to prevent problem gambling based on their demonstrated efficacy and/or their similarity to initiatives that are empirically effective in preventing other addictive behaviour. Based on this etiological framework and this critical review of the research, identifying current ‘best practices’ for the prevention of problem gambling.

The Structural Features of Sports and Race Betting Inducements: Issues for Harm Minimisation and Consumer Protection

Article

Full-text available

Jun 2017
J GAMBL STUD

Minimal research has been published about inducements for sports and race betting, despite their ready availability and aggressive advertising. This paper aimed to document the range and structural features of these inducements, and analyse their alignment with the harm minimisation and consumer protection goals of responsible gambling. A scan of all inducements offered on the websites of 30 major race and sports betting brands located 223 separate inducements which we categorised into 15 generic types, all offering financial incentives to purchase. These comprised sign-up offers, refer-a-friend offers, happy hours, mobile betting bonuses, multi-bet offers, refund/stake-back offers, matching stakes/deposits, winnings paid for ‘close calls’, bonus or better odds, bonus or better winnings, competitions, reduced commission, free bets to selected punters, cash rebates and other free bets. All inducements were subject to numerous terms and conditions which were complex, difficult to find, and obscured by legalistic language. Play-through conditions of bonus bets were particularly difficult to interpret and failed basic requirements for informed choice. Website advertisements for inducements were prominently promoted but few contained a responsible gambling message. The results were analysed to generate 12 research propositions considered worthy of empirical research to inform much needed regulatory reform in this area.

Introduction: Tourism and Hospitality Marketing Research — Update and Suggestions

Chapter

Full-text available

Dec 2006

THE EFFECT OF LOYALTY PROGRAMS ON THE SERVICE QUALITY IN HEALTHCARE INDUSTRY: American Hospital Case.

Thesis

Full-text available

Sep 2015

The main purpose is to study the current situation in Albania related with the attitudes of Albanian society toward loyalty programs, healthcare loyalty cards usage in healthcare sector. The study aims also measuring the effect of loyalty programs on the service quality in Albanian healthcare sector. This thesis is descriptive quantitative in nature, aiming to develop a better understanding of the effect of loyalty cards on the healthcare service quality. The statistical package SPSS was used for data analysis. Finding indicates that the loyalty programs have positive effect on healthcare service quality. Moreover, loyalty card usage appears to play an important role in increasing the strength of association between loyalty programs and healthcare service quality. Results confirm the varying importance of some socio-demographic variables on the effect of loyalty cards on Albanian healthcare service quality. It has also been found that private hospitals have higher overall loyalty care than public hospitals. Study indicates that loyalty programs implementation is used overall in private hospitals but useless in public hospitals.

A Mathematical approach for optimizing the casino slot floor: A linear programming application

Article

Full-text available

Kasra Ghaharian

Linear programming is a tool that has been successfully applied to various problems across many different industries and businesses. However, it appears that casino operators may have overlooked this useful and proven method. At most casino properties the bulk of gaming revenues are derived from slot machines. It is therefore imperative for casino operators to effectively manage and cultivate the performance of this department. A primary task for the casino operator is planning and deciding the mix of slot machines in order to maximize performance. This paper addresses the age-old task of optimizing the casino slot floor, but it does so as a linear programming problem. The method has been applied to data supplied by a Las Vegas repeater market hotel casino. Two models were developed, and both produced results that improved the performance of the casino slot floor. The research provides casino operators with a systematic method that will help analyze and enhance their slot operations.

Prevention of problem gambling: a comprehensive review of the evidence and identified best practices

Article

Full-text available

Sep 2007

Do Advertising and Promotions for Online Gambling Increase Gambling Consumption? An Exploratory Study

Article

Full-text available

Apr 2014

It remains unclear if gambling advertising and promotion increase demand for, and consumption of, gambling, or only affect market share distributions without increasing total consumption. Although investigated in relation to land-based gambling, studies have not examined how such marketing influences behavioural patterns of Internet gamblers. The aim of this study therefore, was to explore ways in which advertising and promotion of Internet gambling may contribute to increased consumption of gambling. Qualitative interviews were conducted with 50 Internet gamblers drawn from the general population, and 31 treatment-seeking Internet gamblers. In-depth analysis of interview transcripts revealed limited reported effectiveness of advertising and promotions in converting non-gamblers to Internet gamblers. However, general population gamblers reported occasionally gambling more than intended (increased consumption) in response to free bet and deposit offers. A proportion of treatment-seekers reported increased gambling, particularly associated with bonus offers that required matched deposits and gambling before any winnings could be collected. Advertisements and promotions invoked urges to gamble among treatment-seeking gamblers, and appeared to some participants to be designed to target individuals who had taken steps to limit or cease gambling. Findings provide preliminary evidence of Internet gambling promotional activities increasing overall consumption amongst a sub-group of gamblers

Ethical ideologies, perceived gambling value, and gambling commitment: An Asian perspective

Article

Feb 2014
J BUS RES

This study evaluates the relationship between ethical ideology and gambling commitment, and the moderating effect of perceived gambling value. Through a field survey of patrons of a leading Asia's gambling establishment, 382 usable responses were received. Data were analyzed using factor analysis and hierarchical multiple regression. The results show that ethical ideologies and perceived gambling value predict a significant amount of variance in gambling commitment. Specifically, idealism has a negative relationship with number of years of gambling and amount gambled. Relativism associates positively with number of years of gambling and amount gambled. Customer value negatively moderates the relationship between idealism and the two dimensions of commitment, and positively moderates the relationship between relativism and the commitment dimensions. Furthermore, idealism has a negative effect on perceived gambling value, and relativism has a positive effect on perceived gambling value.

The Role of Superstition as a Personal Moderator in the Development of Behavioural Loyalty to and within Casinos

Article

Full-text available

Feb 2010

Daniel Guttentag

Superstition as a personal moderator in the development of commitment and loyalty to and within casinos

Article

Full-text available

Feb 2010

Gambling is a popular leisure activity for people around the world and the global casino industry has expanded rapidly in recent years. Behavioural loyalty among gamblers can be very important to the success of casinos, which will benefit from marketing strategies used to induce loyal patronage. However, it must also be appreciated that extremely loyal behaviour may be an indication of problem gambling, by which this leisure activity becomes detrimental. This article presents 12 propositions related to behavioural loyalty and casino gambling, focusing on superstition's role as a personal moderator influencing the formation of casino gambling loyalties. This conceptualization is based on a pre-existing model that delineates the process by which behavioural loyalty develops in a leisure context. The propositions are divided into six main categories: the basic functions of superstition as a personal moderator, types of superstition, the casino as a setting for the development of superstition, loyalty towards different types of games, socio-demographic and cultural variables, and the prevention of problem gambling. Implications for casino management and the prevention of problem gambling are discussed.

A Journey From Customer Acquisition to Retention: An Integrative Model for Guiding Future Gaming Marketing Research

Article

Dec 2023

Casinos operate in a competitive environment. Relationship marketing has become a central focus of casino marketing practice. However, the literature lacks any clearly identified marketing strategies for customer acquisition and retention. This article employs a systematic literature review method to identify and delineate acquisition and retention strategies for the casino sector. The findings revealed measures and antecedents for customer acquisition, retention, casino consumption, and loyalty. The study draws on these findings to present a conceptual model that categorizes customer acquisition and retention strategies. Suggestions and recommendations are highlighted for practitioners and researchers.

The customer-brand relationship in the gambling industry: positive play predicts attitudinal and behavioral loyalty

Article

Jun 2022

This research draws on the model of positive play (i.e. responsible gambling) to investigate whether positive play beliefs (e.g. accurate understanding about the odds of success on games of chance) and behavior (e.g. setting a limit on gambling expenditures) are associated with attitudinal loyalty and behavioral loyalty. Results from Study 1 indicated that among American casino loyalty program members (N = 188), positive play was predictive of attitudinal loyalty when controlling for disordered gambling symptomatology. In Study 2, using survey and player-account data from 383 members of a Canadian casino loyalty program, we found that positive play was negatively associated with behavioral loyalty, but that this association was eliminated after accounting for disordered gambling symptomatology. These results suggest that fostering positive play may help increase positive perceptions of a casino and its loyalty program without undermining the amount of money a player spends at that casino.

The Effects of System Features, Perceived Risk and Benefit, and Customer Characteristics on Online Bill Paying

Chapter

Jan 2009

Along with the exponential increase in online business transactions, the online payment system has gained in popularity because vendors and creditors realize its growing importance as a foundation to improve their information infrastructure and to achieve “paperless” operating efficiency.However, due to per se different characteristics among customers and Web-systems, both sides’ perspectives and technology factors could cause a significant level of variation in customers’ acceptance of online payment methods.Our research involving 148 subjects who participated in a field survey, examined the impact of a series of possible decision factors, including perceived risk, perceived benefits, vendor’s system features, and customers’ characteristics, on the intention to use an online payment system by customers. The results suggest that vendors/creditors should:one, pay particular attention to improving the security and the ease-of-use of their transaction network; and two, focus on adding necessary option features, such as recurring automatic deductions, so that they can speed up the transformation process and encourage customers to switch to using online payment methods.

Decision Factors for the Adoption of an Online Payment System by Customers

Chapter

Jan 2009

Along with the exponential increase in online business transactions, the online payment system has gained in popularity because vendors and creditors realize its growing importance as a foundation to improve their information infrastructure and to achieve “paperless” operating efficiency. However, due to per se different characteristics among customers and Web-systems, both sides’ perspectives and technology factors could cause a significant level of variation in customers’ acceptance of online payment methods. Our research involving 148 subjects who participated in a field survey examined the impact of a series of possible decision factors including perceived risk, perceived benefits, vendor’s system features, and customers’ characteristics on the intention to use an online payment system by customers. Some significant associations are observed and their implications are discussed.

Do loyalty programs really matter for hotel operational and financial performance?

Article

Mar 2018
Int J Contemp Hospit Manag

Purpose This study aims to use a sample of 2,120 individual hotel properties between 2011 and 2013 to evaluate the impact of loyalty programs on hotel operational and financial performance. Design/methodology/approach This study provides empirical support for the impact of loyalty program based on both cross-sectional and panel data analyses and uses the instrumental variable technique to avoid potential heteroscedasticity, autocorrelation and simultaneity issues. Findings Findings of this study show that loyalty program expenses have a significant and positive impact on all three operational performance indicators of RevPAR, ADR and Occupancy and the financial performance indicator of gross operating profit. Research limitations/implications This study suggests that the benefits of loyalty programs should be understood against the backdrop of a reasonable set of controlled variables such as e-commerce, franchise, advertising, other marketing expenses, hotel size and hotel chain scales. Originality/value Given the conflicting viewpoints about the positive and negative impacts of loyalty programs, and that the literature is scant on empirical validation of the impact of loyalty programs on the overall operational and financial performance of hotel properties, this study is an early attempt to empirically test the impact of loyalty programs on a number of hotel operational and financial performance indicators by using an extensive list of individual hotel properties between 2011 and 2013.

İstanbul a Gelen Yabancı Turistlerin Ürün Tercihlerinde Satış Geliştirme Faaliyetlerinin Etkisi

Article

Jan 2013

Spillover from Complimentary Item-Based Promotions: Evidence from Atlantic City

Article

Jan 2012
J Hospit Tourism Res

Studies to date on the effectiveness of compliment-based promotion by U.S. casinos have frequently found insignificant effect of such promotion on casino revenues. Yet complimentary offers remain the main marketing strategy practiced by the industry. The authors suspect that demand spillover exists among casinos in a market, which causes a spurious relationship. Thus, the current study examines the effects of compliment expenditures on casino demand after accounting for spatial spillover effects. Results of the spatial panel Durbin model analysis suggest that popular complimentary offers, such as rooms, food, and beverages, lead to fierce competition that can be harmful to the entire market. Contrarily, less-used travel reimbursement, bus programs, and free parking help attract new players to the market. Implications for the industry and suggestions for future research are provided with the findings of the study.

Is the gaming industry still recession-proof?: A time series with intervention analysis of gaming volume in Iowa

Article

Sep 2013
Int J Contemp Hospit Manag

Purpose – The purpose of this study is to examine how the recent recession affected Iowa's gaming industry by analyzing gaming volumes before and through the recession. Design/methodology/approach – This study used autoregressive integrated moving average (ARIMA) with intervention analysis to examine Iowa statewide aggregated monthly slot coin-in, table drop, and admission from December 2001 through June 2012. Findings – The results of analyses show that: slot coin-in was not affected by the recession; table drop was slightly affected, but started to recover in late 2010; and monthly admission was not affected by the recession, and showed a significant increase after the recession. The results also indicate that the decrease in table drop in Iowa casinos represented only a very small amount of state gaming revenue in 2008. Therefore, the findings of this study suggest that Iowa's gaming volume was not significantly affected by the recent recession. In other words, Iowa's gaming industry is still recession-proof. Practical implications – Current economic conditions suggest that the threat of a double-dip recession is quite real. The findings of this study are expected to help casino managers in Iowa understand how non-destination casinos behaved differently through the recession and strategically plan for a possible future economic downturn. In fact, the significant increase of monthly admission during the last recession implies that the Iowa gaming industry has actually benefited from the recession by accommodating more patrons. Therefore, to capitalize on the next recession, Iowa's casino operators should consider reducing the number of table games and increasing the number of slot machines to accommodate more slot players and reduce operating costs. Originality/value – Most existing gaming-related research focuses on gaming destinations such as Las Vegas and Atlantic City. No known study on gaming volume in non-destination gaming markets has been identified. By examining Iowa's gaming volume through the recession, this study provides initial empirical evidence of the impact of recession on non-destination gaming markets.

El tipo de incentivo como determinante en el atractivo de la promoción de venta en turismo rural. Efecto moderador del sexo, la edad y la experiencia

Article

Full-text available

Sep 2012

El turismo rural es un sector de gran importancia dentro del turismo español y requiere de la puesta en práctica de instrumentos promocionales que permitan conseguir una mayor atracción de clientes. En este trabajo se pretende investigar el atractivo de distintos tipos de incentivos promocionales (promociones congruentes y no congruentes tanto monetarias como no monetarias), así como el efecto interacción entre la propensión a las promociones, variables demográficas y el efecto experiencia de los individuos con el turismo rural. Los resultados del trabajo ponen de manifiesto una influencia significativa del tipo de promoción sobre su atractivo. Concretamente se ha demostrado que las promociones de ventas congruentes (excursiones y cuidado del medio ambiente) con la actividad de turismo rural son más atractivas que las no congruentes no monetarias (regalos y sorteos). Sin embargo, este mayor atractivo de las herramientas congruentes no se manifiesta en uno de los tipos de promociones no congruentes monetarias (descuentos en precio). También, se ha puesto de manifiesto que la edad y el sexo moderan parcialmente el efecto de la propensión sobre el atractivo promocional y que la experiencia no modera dicho efecto

Examining the effects of various promotion types on slot gaming volumes

Article

Feb 2014
Int J Hospit Manag

This study examines the effects of different types of casino promotions on daily slot volumes, using data from two riverboat casinos located in the Southern and Midwestern regions of the United States. Results suggest that promotions featuring drawings for big prizes, such as large amounts of cash, cars and boats, were more effective in generating incremental slot volumes than those with small prizes. However, drawing frequency and slot volume were not significantly related. Play incentives were positively associated with slot gaming volume, while slot tournaments and player events had no significant effect on slot volume.

The indirect gaming contributions of cash and comped casino dining: Does providing complimentary meals pay off at the slots?

Article

Dec 2012
Int J Hospit Manag

This study examined the relationship between gaming volume and restaurant revenue for paid and comped diners; i.e., diners for whom the meal was provided free, using data from two hotel casinos in different markets. The results of time series regression analysis revealed a significant and positive relationship between restaurant revenue and gaming volume in both markets. However, the gaming contribution of comped diners in terms of estimated incremental gaming revenue was much higher than that of cash diners in both markets. These findings confirm the ability of casino restaurants to attract gaming patrons and suggest that providing complimentary meals may be an effective tool to stimulate visits and generate gaming revenue.

Examining the relationship between poker and the gaming volumes of Las Vegas hotel casinos

Article

Sep 2013
J BUS RES

This study tests a long held anecdotal claim that a poker room draws people into the casino that might otherwise be absent. Using daily data from two major hotel casinos located on the Las Vegas Strip, this study examines the effect of poker on the business volumes of table and slot games. The time series regression analysis produce mixed findings that the significant effect of poker on gaming volumes only appears in a gaming-centric property but not in the other property offering diverse non-gaming attractions besides gaming. The findings of this study call for casino management's careful evaluation of poker's attractiveness as a draw. This study also provides guidelines for evaluating poker's contribution to the slot/table game department's operating profit.

Estimating Untracked Gaming Volumes by Hotel Occupancy Segment

Article

May 2011

Anthony F. Lucas

Many Las Vegas gaming properties also operate hotels with thousands of rooms, which cannot be filled with premium gamblers every night. Given the fierce competition for premium gamblers, hotel-casino executives must pursue other segments as well. To choose segments that optimize earnings, management must compute the total value of a room night for each target segment. Customer spending traverses several departments, including slots, table games, restaurants, and retail. Unfortunately, many of these transactions are not captured at the customer level. Therefore, equations must be derived to estimate critical values, such as the change in unrated slot play resulting from a one-unit increase in the wholesale room segment. Such equations allow executives to fill in crucial gaps in the segment valuation grid. Once the overall profit per room night is computed for each hotel segment, operators can rank segment values. This business intelligence identifies the most and least valuable segments, allowing management to move toward optimizing earnings. Performance data from a Las Vegas Strip hotel-casino are used to illustrate the tenability of models designed to predict critical pieces of this profit puzzle. Unique and important differences in the margins of hotel-casino profit centers are also highlighted.

Fear and Managing in Las VegasAn Analysis of the Effects of September 11, 2001, on Las Vegas Strip Gaming Volume

Article

May 2008

This article provides an analysis of the impacts of the events of September 11, 2001, on certain gaming business volume on the Las Vegas Strip. Almost immediately after these events, management teams commenced with layoffs and project postponements, in anticipation of a long and painful recovery period. The authors' intervention analysis, however, reveals an abrupt decline lasting five months, indicating a relatively rapid recovery. Interestingly, this type of recovery appears to be similar to that which has been observed in other literature examining previous terrorist attacks. In the concluding discussion, the authors highlight the lessons of both history and empirical inquiry in hopes of helping managers understand the dynamics of terrorism impacts on the hospitality industry in general and on the gaming industry in particular.

Estimating the Effects of Micro-Location Variables and Game Characteristics on Slot Machine Volume: A Performance-Potential Model

Article

May 2005
J Hospit Tourism Res

A performance-potential model explains 64% of the variation in the unit-level wagering volume of 166 slot machines located in a Las Vegas Strip casino. This study extends the extant gaming literature by narrowing the definition of a slot machine’s location and advancing new variables theorized to influence slot machine performance. Micro-location variables describing ceiling height, aisle locations, and the placement of a unit within a bank of machines all produce significant increases in unit-level performance. These results also have floor design implications related to increasing real capacity. In addition, slot signs fail to significantly affect coin-in levels, whereas the standard deviation of the pay-table and the top-award value produce significant and negative effects on performance. Casino executives are offered a performance-potential equation as an alternative evaluation tool beyond that of simplistic comparisons to categorical averages. The model specification is influenced by literature from the marketing, environmental psychology, performance-potential, and gaming disciplines.

Measuring The Effect Of Casino-Operated Restaurant Volume On Slot Machine Business Volume: An Exploratory Study

Article

Feb 2003
J Hospit Tourism Res

Using data from three different North American casino markets, models designed to explain the variance in slot machine business volume (coin-in) produced a significant and positive effect for a variable representing casino-operated restaurant business volume (covers). Simultaneous multiple regression analysis was used to test the audited, secondary data for significance at the .05 alpha level. A 200-day period was examined for each casino property. The results of this study contradicted an earlier, counterintuitive finding by Lucas and Brewer that provided the basis for this work. The related literature is scarce, largely anecdotal, and split regarding the nature of the relationship between restaurants' and casinos' volumes. This exploratory study adds valuable empirical results to this limited but growing literature base while highlighting important strategic and managerial implications.

Evaluating slot machine performance: A performance-potential model

Article

Jun 2004
Int J Hospit Manag

Floor location and specific game characteristics are found to affect slot machine performance. Slot machine locations characterized by accessibility, visibility and close proximity to table games areas outperform perimeter locations. A Las Vegas Strip casino supplied results from 250, $1.00 reel slots. Multiple regression analysis was employed to test all hypotheses at the 0.05 alpha level. This study extended the work of Lucas and Roehl (J. Travel Tourism Market. 12 (4) (2002) 75) advancing a performance-potential model as an alternative means of evaluating individual slot machine results. The location-related results support the basic casino floor design suggested by Lucas and Roehl.

An overview of consumer non-problem gaming research

Article

Oct 2009

Purpose The purpose of this paper is to provide an overview of the extant research around the non‐pathological gaming customer and then propose research for future study of this customer. Design/methodology/approach Academic literature combined with the results of primary research is used to examine the incidence of gambling and non‐problem gaming research trends in the hospitality industry. Findings The overview of the publicly available research on the casino gaming consumer leads to a host of suggestions for future research. Practical implications The practical implications include recent developments in gaming consumer profiles, as well as suggested for future research to further understand the non‐problem gaming consumer. Originality/value The paper examines existing literature and is valuable for anyone who wishes to begin studying the gaming consumer. This paper provides direction for future study.

Betting on Casino Tourism in Asia: Singapore's Integrated Resorts

Article

Oct 2006

Joan Henderson

This article deals with the subject of casinos as a tourist attraction and tourism development tool within an Asian context. It focuses on the case of Singapore, where approval has been granted for two new integrated resorts that will include casino facilities, reversing a long-standing ban. The decision, its underlying imperatives, and implications are discussed with reference to wider regional trends. These suggest that the number of casino resorts will increase and feature more prominently in tourism development and marketing strategies. However, concerns are also identified about the limitations of casino tourism and its adverse impacts. Careful planning and management are essential in order to realize potential rewards and mitigate possible damage. These questions and other aspects of casino tourism warrant further study in view of the sector's anticipated expansion and a research agenda for the future is proposed.

Estimating the Impact of Match-Play Promotional Offers on the Blackjack Business Volume of a Las Vegas Hotel Casino

Article

Feb 2004
J Trav Tourism Market

Anthony F. Lucas

A theoretical model advanced by Lucas and Kilby (2002) is modified and empirically tested to estimate the effect of match-play coupons on blackjack business volume. Although widely employed, little is known about the effectiveness of these play incentives. Using data from a Las Vegas Strip hotel casino spanning a 222-day period, a variable representing the dollar-value of match-play coupons redeemed fails to produce a positive effect on blackjack cash drop. Hypothesis testing is conducted via simultaneous multiple regression analysis at the .05 alpha level. Variables representing the day of the week, holidays and special events produce positive effects on blackjack cash drop.

Games People Play: A Comparative Study Of Promotional Game Participants And Gamblers

Article

Full-text available

Oct 2011

This study examines the use of promotional games and contests as a form of hedonic consumption related to other gaming behavior. Discriminant analysis using a combination of demographics and gambling behavior identified age, lottery playing, and education as important predictors of promotional game playing. Compared to non-players, users of promotional games were younger, better educated, more likely to be part of families with children, and more likely to participate in legal gambling activities.

Sales effects of in-store advertising

Article

Full-text available

Jan 1975

Competition, Casino Spending, and Use of Casino Amenities

Article

Full-text available

Dec 1996
J Trav Res

Wesley S. Roehl

Users of some casino amenities, such as gourmet restaurants, coffee shops, and large-and small-scale shows, spend substantially more money gambling than do nonusers of these amenities. As competition increases, information on the role amenities play in attracting guests and keeping them on-site will become more important.

Incorporating Casino Game Preference Market Segment Data Into Marketing Plans

Article

Full-text available

Apr 1982
J Trav Res

Lawrence Dandurand

An understanding of visitor game preference and associated market segment structures may contribute to improved marketing plans and programs. This article presents findings of casino game preferences and correlated structures, and indicates how they may be used in the marketing planning process.

An Investigation of Entertainment Proneness and Its Relationship to Gambling Behavior: The Las Vegas Experience

Article

Full-text available

Jan 1985
J Trav Res

The research results reported in this article indicate significant relationships between entertainment and gambling behavior and indicate variables which can be used to predict the entertainment-proneness of a visitor. In addition the entertainment-prone visitor is described and compared to other visitors.

The Long - Term Impact of Promotion and Advertising on Consumer Brand Choice

Article

Full-text available

May 1997

The authors examine the long-term effects of promotion and advertising on consumers' brand choice behavior. They use 8 1/4 years of panel data for a frequently purchased packaged good to address two questions: (1) Do consumers' responses to marketing mix variables, such as price, change over a long period of time? (2) If yes, are these changes associated with changes in manufacturers'advertising and retailers'promotional policies? Using these results, the authors draw implications for manufacturers' pricing, advertising, and promotion policies. The authors use a two-stage approach, which permits them to assess the medium-term (quarterly) effects of advertising and promotion as well as their long-term (i.e., over an infinite horizon) effects. Their results are consistent with the hypotheses that consumers become more price and promotion sensitive over time because of reduced advertising and increased promotions.

A Benefit Congruency Framework of Sales Promotion Effectiveness

Article

Full-text available

Oct 2000
J MARKETING

The construction of a framework of the multiple consumer benefits of a sales promotion is discussed. Through a series of measurement studies, the authors find that monetary and nonmonetary promotions provide consumers with different levels of 3 hedonic benefits (opportunities for value expression, entertainment and exploration) and 3 utilitarian benefits (savings, higher product quality, and improved shopping convenience). To address the second question, the researchers develop a benefit congruency framework, which argues that a sales promotion's effectiveness is determined by the utilitarian or hedonic nature of the benefits it delivers and the congruence these benefits have with the promoted product. Among other results, 2 choice experiments show that as predicted for high-equity brands monetary promotions are more effective for utilitarian products than for hedonic products.

Semiparametric analysis to estimate the deal effect curve

Article

Full-text available

Jan 2001

The marketing literature suggests several phenomena that may contribute to the nature of the relationship between sales and price discounts. These phenomena can produce complex nonlinearities and interactions in the deal effect curve which are best captured with a flexible approach. Since a fully nonparametric regression model suffers from the ``curse of dimensionality,'' we propose a semiparametric regression model. Store-level sales over time is modeled as a nonparametric function of own- and cross-item price discounts, and a parametric function of other predictors. We compare the predictive validity of the semiparametric model with that of two parametric benchmark models and obtain superior performance. The results for three product categories indicate threshold- and saturation effects for both own- and cross-item temporary price cuts. We also find that the nature of the own-item curve depends on other items' price discounts. Comparisons with restricted model specifications show that both the flexible main-and flexible interaction effects contribute to the superior results for the semiparametric approach. The interaction effects are so complex that it is unlikely for any parametric model to be satisfactory. In a separate analysis, we illustrate how the shape of the deal effect curve depends on own-item promotion signals. We observe a crossover interaction effect: for the item analyzed feature advertising produces a higher sales effect up to 20 percent discount while display achieves higher sales for discounts in excess of 20 percent.

How Promotions Work

Article

Full-text available

Aug 1995

By synthesizing findings across the sales promotion literature, this article helps the reader understand how promotions work. We identify and explain empirical generalizations related to sales promotion; that is, effects that have been found consistently in multiple studies involving different researchers. We also identify issues which have generated conflicting findings in the research, as well as important sales promotion topics that have not yet been studied. This overview of the research and findings from the sales promotion literature is intended to offer direction for future research in the area.

The Discounting of Discounts and Promotion Thresholds

Article

Full-text available

Feb 1992

This study examines consumers' response to retailers' price promotions. It shows that consumers discount the price discounts. It also suggests that the discounting of discounts and changes in purchase intention depend on the discount level, store image, and whether the product advertised is a name brand or a store brand. The study goes one step further to investigate the existence of promotion thresholds. We use experimental data and an econometric methodology to gather empirical evidence that consumers do not change their intentions to buy unless the promotional discount is above a threshold level. This threshold point differs for name brands and store brands. Specifically, we find that the threshold for a name brand is lower than that for a store brand. In other words, stores can attract consumers by offering a small discount on name brands while a larger discount is needed for a similar effect for a store brand. The study also indicates the existence of a promotion saturation point above which the effect of discounts on changes in consumers' purchase intention is minimal. These results confirm consumers' S-shaped response to promotions.

The Long-Term Impact of Promotion and Advertising on Consumer Brand Choice

Article

May 1997

The authors examine the long-term effects of promotion and advertising on consumers’ brand choice behavior. They use 8 1/4 years of panel data for a frequently purchased packaged good to address two questions: (1) Do consumers’ responses to marketing mix variables, such as price, change over a long period of time? (2) If yes, are these changes associated with changes in manufacturers’ advertising and retailers’ promotional policies? Using these results, the authors draw implications for manufacturers’ pricing, advertising, and promotion policies. The authors use a two-stage approach, which permits them to assess the medium-term (quarterly) effects of advertising and promotion as well as their long-term (i.e., over an infinite horizon) effects. Their results are consistent with the hypotheses that consumers become more price and promotion sensitive over time because of reduced advertising and increased promotions.

Evaluating the Multiple Effects of Retail Promotions on Brand Loyal and Brand Switching Segments

Article

Feb 1992

The authors determine the multiple effects of retail promotions on brand loyal and brand switching segments of consumers. Segments are determined by an iterative Bayesian procedure. The variations in within-segment brand shares within a store are related to promotional variables by a logit model estimated by nonlinear least squares. Store share is modeled as a function of store attractiveness, a summary measure of the store's promotional activity on the multiple brands. Finally, category volume is related to overall product category attractiveness in a model that includes both current and lagged effects. The research approach is applied to the IRI ground coffee data. Results include: (1) the market can be characterized by brand loyal segments, each of which buys mostly their favorite brand, and switching segments, each of which switches mainly among different brands of the same type (e.g., drip, percolator), (2) promotional variables have significant effects on within-segment market shares, the effects being different across segments, (3) store share is related significantly to promotional attractiveness of a store, (4) the overall promotional attractiveness of the product category has significant current and lagged effects on category volume, and (5) the lagged effects resulting from consumer purchase acceleration and stockup last longer for brand loyal segments than for switching segments.

Measuring the Dynamic Effects of Promotions on Brand Choice

Article

Feb 1996

Promotions are being used with increasing frequency by manufacturers facing highly competitive markets, which is causing concern among some marketers who feel that frequent promotions can hurt a brand. Nevertheless, there is little empirical evidence to either support or dispel such fears. To fill this gap in the literature, the authors propose a brand choice model that provides an estimate of the dynamic effects of promotions on loyalty to the brand and customers’ sensitivity to the price of the brand, and measures whether promotional purchases reinforce or reduce subsequent response to similar promotions. They estimate a random effects heteroskedastic covariance probit time-varying parameter model on household scanner panel data from the liquid detergent category. Their results indicate that increased purchases using coupons erode brand loyalty and increase price sensitivity. In addition, the authors find that the effect of features and displays on brand choice is reinforced by prior feature and display purchases, respectivly, as well as by feature and display purchases associated with price cuts. Future research directions are also discussed.

Impact of Sales Promotions on when, what, and how Much to Buy

Article

Nov 1988

Sunil Gupta

The effectiveness of a sales promotion can be examined by decomposing the sales “bump” during the promotion period into sales increase due to brand switching, purchase time acceleration, and stockpiling. The author proposes a method for such a decomposition whereby brand sales are considered the result of consumer decisions about when, what, and how much to buy. The impact of marketing variables on these three consumer decisions is captured by an Erlang-2 interpurchase time model, a multinomial logit model of brand choice, and a cumulative logit model of purchase quantity. The models are estimated with IRI scanner panel data for regular ground coffee. The results indicate that more than 84% of the sales increase due to promotion comes from brand switching (a very small part of which may be switching between different sizes of the same brand). Purchase acceleration in time accounts for less than 14% of the sales increase, whereas stockpiling due to promotion is a negligible phenomenon accounting for less than 2% of the sales increase.

Reference Effects of Price and Promotion on Brand Choice Behavior

Article

Aug 1989

When consumers are exposed to pricing and promotional activity by frequently purchased packaged goods, they may develop expectations that are used as points of reference in evaluating future activity. The authors build a model to test for the presence of these reference effects on brand choice behavior. The approach differs from previous research in two ways: (1) the model includes reference effects of promotion in addition to reference effects of price and (2) a threshold model is introduced to capture the formation of the consumer's promotional reference point. The authors calibrate a model of brand choice using IRI scanner panel data on ground coffee. The findings suggest that promotional activity has significant reference effects on consumer response.

Measuring the Effect of Retail Store Promotions on Brand and Store Substitution

Article

May 1988

Using store-level scanner data, the authors investigate the effect of retail store price promotion, featuring, and displays on sales of brands of disposable diapers within a city. A hierarchical, cross-sectional, and time-series modeling procedure is used to identify the competitive structure among retail stores within a test market city. Models are developed for pooled store pairs to investigate the effect of promotion on store substitution. The specification of these models is based on findings from within-store brand substitution models. Within a store, price promotion produced the largest amount of brand substitution, followed by featuring and displays. Similarly, these activities produced store substitution in certain instances. However, which specific promotional variables are significant and the magnitude of the effect are a function of the geographic proximity of the stores.

Outshopping and hedonic consumption

Article

Jan 1991

A Price Expectations Model of Customer Brand Choice

Article

Aug 1990

The authors develop, calibrate, and test a disaggregate model of customer brand choice with customers’ price expectations as the mediating construct. They use a two-stage modeling procedure. The first stage is the determination of how expected prices are formed. In the second stage, brand choice is assumed to depend on the brand's retail price and whether or not that price compares favorably with the brand's expected price. The authors also test the hypothesis of symmetry in customer response to positive deviations (“losses”) and negative deviations (“gains”) of the retail price from the expected price. Analysis of scanner-panel data in the coffee market reveals that the brand choice model in which customers are assumed to respond to retail prices by comparing them with the corresponding expected prices provides a significantly better fit than a traditional brand choice model. Consistent with prospect theory, customers are found to react more strongly to price losses than to price gains. Results from the calibration of the expected price model indicate that expected price is not only dependent on past prices, but is also affected by the frequency with which a brand is promoted, economic conditions, customer characteristics, and the type of store shopped.

Dealing to the Premium Player: Casino Marketing and Management Strategies to Cope with High Risk Situations

Article

Jan 1992

Retail promotional effects on intra- and interbrand sales performance

Article

Jan 1985
J RETAILING

M.M. Moriarty

Impact of Sales Promotions on When, What, and How Much to Buy

Article

Nov 1993

Sunil Gupta

The effectiveness of a sales promotion can be examined by decomposing the sales "bump" during the promotion period into sales increase due to brand switching, purchase time acceleration, and stockpiling. The author proposes a method for such a decomposition whereby brand sales are considered the result of consumer decisions about when, what, and how much to buy. The impact of marketing variables on these three consumer decisions is captured by an Erlang-2 interpurchase time model, a multinomial logit model of brand choice, and a cumulative logit model of purchase quantity. The models are estimated with IRI scanner panel data for regular ground coffee. The results indicate that more than 84% of the sales increase due to promotion comes from brand switching (a very small part of which may be switching between different sizes of the same brand). Purchase acceleration in time accounts for less than 14% of the sales increase, whereas stockpiling due to promotion is a negligible phenomenon accounting for less than 2% of the sales increase.

A Probabilistic Approach to Pricing a Bundle of Products or Services

Article

Nov 1993

The authors propose a probabilistic approach to optimally price a bundle of products or services that maximizes seller's profits. Their focus is on situations in which consumer decision making is on the basis of multiple criteria. For model development and empirical investigation they consider a season ticket bundle for a series of entertainment performances such as sports games and music/dance concerts. In this case, they assume consumer purchase decisions to be a function of two independent resource dimensions, namely, available time to attend performances and reservation price per performance. Using this information, the model suggests the optimal prices of the bundle and/or components (individual performances), and corresponding maximum profits under three alternative strategies: (a) pure components (each performance is priced and offered separately), (b) pure bundling (the performances are priced and offered only as a bundle), and (c) mixed bundling (both the bundle and the individual performances are priced and offered separately). They apply their model to price a planned series of music/dance performances. Results indicate that a mixed bundling strategy is more profitable than pure components or pure bundling strategies provided the relative prices of the bundle and components are carefully chosen. Limitations and possible extensions of the model are discussed.

Evaluating the Multiple Effects of Retail Promotions on Brand Loyal and Brand Switching Segments

Article

Feb 1992

Designing Effective Promotional Games: Opportunities and Problems

Article

Jun 2013

Games such as sweepstakes and contests have become increasingly popular parts of promotional and advertising campaigns. Despite their wide use, very little academic theory or research exists about how consumers perceive and respond to promotional games. This paper presents a conceptual model of why consumers decide to participate in games, and how the process of play and game outcomes influences attitudes, self-perceptions, and behavior. The model provides a theory-based perspective for the design of promotional games that considers both the opportunities and ethical dilemmas that game sponsors face. Managerial implications are provided and hypotheses are suggested for future research.

Market niche analysis in the casino gaming industry

Article

Mar 1990

Lawrence Dandurand

This article discusses the nature of market niche analysis in the casino gaming industry. It presents four approaches for conducting market niche analysis. An an example of one approach, the Las Vegas Visitor Profile Study is used to identify a premium niche in the Las Vegas Slot Target Market. A detailed examination of the premium niche profile provides a description of the typical premium slot player. The description of the typical premium player leads to hypotheses regarding needs (the unique preference set) of the premium player. An analysis of the unique preference set suggests an appropriate enhanced marketing program.

Measuring The Effect Of Casino-Operated Restaurant Volume On Slot Machine Business Volume: An Exploratory Study

Article

Feb 2003
J Hospit Tourism Res

Reference Effects of Price and Promotion on Brand Choice Behavior

Article

Aug 1989

Measuring the Dynamic E ects of Promo-tions on Brand Choice

Article

Feb 1996

Promotions are being used with increasing frequency by manufacturers facing highly competitive markets, which is causing concern among some marketers who feel that frequent promotions can hurt a brand. Nevertheless, there is little empirical evidence to either support or dispel such fears. To fill this gap in the literature, the authors propose a brand choice model that provides an estimate of the dynamic effects of promotions on loyalty to the brand and customers' sensitivity to the price of the brand, and measures whether promotional purchases reinforce or reduce subsequent response to similar promotions. They estimate a random effects heteroskedastic covariance probit time-varying parameter model on household scanner panel data from the liquid detergent category. Their results indicate that increased purchases using coupons erode brand loyalty and increase price sensitivity. In addition, the authors find that the effect of features and displays on brand choice is reinforced by prior feature and display purchases, respectivly, as well as by feature and display purchases associated with price cuts. Future research directions are also discussed.

Measuring the E ect of Retail Store Promotions on Brand and Store Substitution

Article

May 1988

Consumer Price and Promotion Expectations: An Experimental Study

Article

Feb 1992

The authors report results from a controlled experiment designed to investigate the impact of a brand's price promotion frequency and the depth of promotional price discounts on the price consumers expect to pay for that brand. A key feature of the work is that expected prices elicited directly from respondents in the experiment are used in the analysis, as opposed to the latent or surrogate measures of expected prices used in previous studies. As hypothesized, both the promotion frequency and the depth of price discounts are found to have a significant impact on price expectations. Evidence also supports a region of relative price insensitivity around the expected price, such that only price changes outside that region have a significant impact on consumer brand choice. Further, the authors find that consumer expectations of both price and promotional activities should be considered in explaining consumer brand choice behavior. Specifically, the presence of a promotional deal when one is not expected or the absence of a promotional deal when one is expected may have a significant impact on consumer brand choice. Finally, as in the case of price expectations, consumer response to promotion expectations is found to be asymmetric in that losses loom larger than gains.

A Price Expectations Model of Consumer Brand Choice

Article

Aug 1990

The authors develop, calibrate, and test a disaggregate model of customer brand choice with customers' price expectations as the mediating construct. They use a two-stage modeling procedure. The first stage is the determination of how expected prices are formed. In the second stage, brand choice is assumed to depend on the brand's retail price and whether or not that price compares favorably with the brand's expected price. The authors also test the hypothesis of symmetry in customer response to positive deviations ("losses") and negative deviations ("gains") of the retail price from the expected price. Analysis of scanner-panel data in the coffee market reveals that the brand choice model in which customers are assumed to respond to retail prices by comparing them with the corresponding expected prices provides a significantly better fit than a traditional brand choice model. Consistent with prospect theory, customers are found to react more strongly to price losses than to price gains. Results from the calibration of the expected price model indicate that expected price is not only dependent on past prices, but is also affected by the frequency with which a brand is promoted, economic conditions, customer characteristics, and the type of store shopped.

Managing the Slot Operations of a Hotel Casino in the Las Vegas Locals’ Market

Article

Aug 2001
J Hospit Tourism Res

This exploratory study was designed to identify and explain the sources of variation in the daily slot handle of a locals’ market hotel casino in Las Vegas, Nevada. A regression model was used to analyze the effects of temporal, operational, and marketing variables hypothesized to influence slot handle. A simultaneous regression analysis was conducted with audited, secondary data using variables adapted from prior research. Significance tests were conducted at the .05 alpha level. The model failed to produce a significant effect for the food covers variable. The buy-in incentives (direct mail) and bingo headcount variables were significantly and positively related to slot handle. The temporal variables emerged as powerful predictors of slot handle. Finally, the results demonstrate the questionable economic significance of the buy-in incentives program and the bingo operation.

Effects of Monetary Incentives on Customer Behavior:: Use of Automatic Teller Machines (ATMs) by Low Frequency Users

Article

Mar 1989

Applied a cash payoff game to increase the use of ATMs by bank customers. ATM users could win either

5 or

100 by playing the game. Cash prizes were awarded based on a predetermined set of probabilities controlled by a central computer; the probability of winning was higher for customers who had used the ATMs at low rates. The game produced an increase in (1) the number of cards used, (2) the frequency of uses per card, and (3) percentage of transactions carried out on ATMs. Increased ATM use was maintained once the game was withdrawn. Data show (1) an efficient, cost-effective method for increasing ATM use with a large population and (2) the possibility of programming individual contingencies on a large scale. (PsycINFO Database Record (c) 2012 APA, all rights reserved)

The Effect of Price Promotions on Variability in Product Category Sales

Article

Aug 1992

Jagmohan S. Raju

Our objective in this research is to relate variability in product category sales to promotional activity in the product category, and other category specific characteristics. The findings may be relevant from retailers' perspective as retailers' revenues are more closely related to the sales of the product category as opposed to the sales of any particular brand. We analyze data on about 2,000 brands from 25 different SAMI categories, obtained with the cooperation of a major grocery chain. Our data suggest that an increase in the magnitude of discounts increases the variability in category sales but an increase in the frequency of discounts has an opposite effect. Furthermore, categories which are bulky, or categories where the degree of competitiveness is high, exhibit lower variability in sales.

The Relationship Between Market Characteristics and Promotional Price Elasticities

Article

May 1989

Ruth N Bolton

Many empirical studies in marketing and economics have estimated brand price elasticities for specific products in markets. Their results indicate that price elasticities seem to differ across brands, product categories, retail outlets, and regions. However, there has been very little research which examines the factors associated with these observed differences. This paper focuses on the promotional price elasticities of established, major brands in stable categories. It identifies some characteristics of markets which may be associated with differences in price elasticities for frequently purchased nondurables. A cross-sectional model of the effect of these market characteristics on price elasticities is developed and estimated utilizing own price elasticity estimates for brands at twelve stores. The results indicate market characteristics such as brand market share, couponing activity, display activity and feature activity explain a substantial amount of the variation in promotional price elasticities.

The role of retail promotion in determining future brand loyalty: Its effect on purchase event feedback

Article

Dec 1999
J RETAILING

We model and estimate the role of retail promotion in determining future brand loyalty through its effect on purchase event feedback. Purchase event feedback represents the effect of current purchases on future brand preference. Our model assesses the extent to which purchases made under a retail promotion enhance or detract from the level of feedback, compared to nonpromotion purchases. We apply the model to two product categories and compare the effects of price versus nonprice retail promotions. We find that in-store price promotions are associated with negative purchase event feedback compared to nonpromotion purchases, whereas nonprice promotions such as features or sampling have no effect or in fact are associated with positive purchase event feedback, compared to purchases made off promotion.

Retailing hedonic consumption: A model of sales promotion of a leisure service

Article

Dec 1996
J RETAILING

Research regarding sales promotions has focused on information processing of price discounts for relatively uninvolving consumer goods. Sales promotions for leisure retail operators, on the other hand, often emphasize some form of added value to patrons who are likely to be relatively involved in hedonic consumption. We propose and test a model of sales promotion for hedonic consumption illustrating that consumer response to sales promotions in leisure settings is a function of consumers' variety-seeking tendencies, loyalty to the service provider, and perceptions of the value of the service provision.

Semiparametric Analysis to Estimate the Deal Effect Curve

Article

Jan 1999

The marketing literature suggests several phenomena that may contribute to the shape of the relationship between sales and price discounts. These phenomena can produce severe nonlinearities and interactions in the curves, and we argue that those are best captured with a flexible approach. Since a fully nonparametric regression model suffers from the curse of dimensionality, we propose a semiparametric regression model. Store-level sales over time is modeled as a nonparametric function of own-and cross-item price discounts, and a parametric function of other predictors (all indicator variables). We compare the predictive validity of the semiparametric model with that of two parametric benchmark models and obtain better performance on average. The results for three product categories indicate a.o. threshold- and saturation effects for both own- and cross-item temporary price cuts. We also show how the own-item curve depends on other items’ price discounts (flexible interaction effects). In a separate analysis, we show how the shape of the deal effect curve depends on own-item promotion signals. Our results indicate that prevailing methods for the estimation of deal effects on sales are inadequate.

Advertising strategies and the retail customer market in Atlantic City: issues for the casino industry

Jan 1984
40-59

J Lowenhar
M T Russell

Lowenhar, J., Russell, M.T., 1984. Advertising strategies and the retail customer market in Atlantic City: issues for the casino industry. In: Eadington, W.R. (Ed.), The Gambling Studies: Proceedings of the Sixth National Conference on Gambling and Risk Taking. Bureau of Business and Economic Research, University of Nevada, Reno, pp. 40-59.

Sweepstakes, prize promotions, games and contests

Jan 1986

J Feinman
R Blashek
R Mccabe

Feinman, J., Blashek, R., McCabe, R., 1986. Sweepstakes, prize promotions, games and contests. Dow-Jones Irwin, Homewood, IL.

Disloyalty becomes the norm

Jul 2001
24-25

J Hiscock

Hiscock, J., 2001. Disloyalty becomes the norm. Marketing (June), 24–25.

Economic aspects of Nevada's gaming industry

Jan 1976
138

Eadington

Eadington, W.R., 1976. Economic aspects of Nevada's gaming industry. In: Eadington, W.R. (Ed.), Gambling and Society. Thomas, Springfield, IL, pp. 138-158.

Demographic of gambling

B Edmonson

Edmonson, B., 1986. Demographic of gambling. American Demographics 39, 40-41, 50-53.

‘WOW!’ marketing. Casino Executive

S Browne

Browne, S., 2001. 'WOW!' marketing. Casino Executive, March, 27.

Jan 1994

J F Engel
M R Warshaw
T C Kinnear

Engel, J.F., Warshaw, M.R., Kinnear, T.C., 1994. Promotional Strategy, 8th Edition. Irwin/McGraw Hill, New York.

Promotional Strategy, 8th Edition

Jan 1994

J F Engel
M R Warshaw
T C Kinnear

Engel, J.F., Warshaw, M.R., Kinnear, T.C., 1994. Promotional Strategy, 8th Edition. Irwin/McGraw Hill, New York.

Consumer price and promotional expectations

Jan 1992
90

Kalwani

Dealing to the premium player

Jan 1992
65

Eadington

Effects of monetary incentives on consumer behavior

Jan 1989
79

McNally

Advertising strategies and the retail customer market in Atlantic City

Jan 1984
40

Lowenhar

Measuring the effectiveness of casino promotions

Abstract

No full-text available

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