How patrons value casino promotional offers: A conjoint study

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...

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Bibliographic Details
Published in:Tourism economics : the business and finance of tourism and recreation 2020-06, Vol.26 (4), p.640-657
Main Authors: Legg, Mark, Hancer, Murat
Format: Article
Language:English
Subjects:
Bayesian analysis
Casinos
Competition
Conjoint analysis
Parks & recreation areas
Patrons
Valuation
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Summary: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.
ISSN:1354-8166
2044-0375
DOI:10.1177/1354816619858892