Driving Repeat Patronage in the Gaming Industry

Loyalty program members are segmented based on their personal values and relationships with their respective programs and performance outcomes are expected to vary between segments. Tiered programs are used to segment customers ideally and provide differentiated rewards based on the customers’ behaviors. This study was designed to identify notable facts for businesses to improve current loyalty programs by examining customers’ repeat purchase behavior. The main purpose of this study was to focus on customers’ behavioral loyalty and examine significant differences between the segments that help explain the intentions and behaviors of casino loyal patrons. Secondary data was used from a Las Vegas Strip hotel casino property. The final data set included 417 samples. Data was entered into SPSS 16.0 for data analysis. Hierarchical cluster analysis was performed for data segmentation and one-way analysis of variance (ANOVA) and Chi-Square test was performed to test the study hypothesis. Study results revealed two cluster solution and indicated that behavioral attributes were not equally significant for the two loyal groups. In conclusion, this study suggested practical utilization of casino loyalty programs by increasing the implementation of differentiated segmentation for loyal customers. Finally, study limitations and future recommendations were addressed.