How patrons value casino promotional offers: A conjoint study

Mark Legg and Murat Hancer
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Mark Legg: Boston University, USA
Murat Hancer: University of Central Florida, USA

Tourism Economics, 2020, vol. 26, issue 4, 640-657

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

Keywords: casino promotional offers; conjoint analysis; food and beverage comps; free slot play; hierarchical Bayes fixed-effects logit model; hotel comps (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:26:y:2020:i:4:p:640-657

DOI: 10.1177/1354816619858892

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