Casino Marketing, Problem Gamblers or Loyal Customers?

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.