Segmenting slot machine players: A factor-cluster analysis

Abstract

Purpose: Slot machines and other machine gaming generate between 65 percent and 90 percent of a US casino's revenue. This article aims to examine the motivations, behaviors, and preferences of slot machine customers, and to develop market segments. Design/methodology/approach: The study's objectives include: understanding the demographic, gambling motivation, and gambling behavioral characteristics of slot machine players; identifying important reasons for choosing one slot machine game over another; examining player attitudes and behaviors pertaining to progressive machines; and investigating player desire for theme-based games. This was accomplished through an online survey of slot machine players. Findings: Profiles of slot machine players are developed and the slot players are segmented into four clusters that explain motivations and game preferences. Practical implications: This article fills in some of the gaps in understanding the gambling behavior of slot players. This study can help gaming machine manufacturers design new products and features to serve existing machine gaming customers and to attract new customers. Casino and other gaming operators can use this information not only to select the right types of machines to provide on-site, but also to develop advertising and promotions to attract and retain new and existing customers for slot machines and other types of gaming machines. Originality/value: This is the first published study that segments slot machine players from a marketing perspective and identifies their preferences, behaviors, and demographic groupings. (PsycINFO Database Record (c) 2013 APA, all rights reserved) (journal abstract)

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