Casino customers in Asian versus western gaming jurisdictions: Implications for western casino operators

Sudhir H. Kale, Mark T. Spence

Research output: Contribution to journalArticleResearchpeer-review

10 Citations (Scopus)
9 Downloads (Pure)

Abstract

Purpose: Most of the growth in casino expansion for the foreseeable future will take place in Asia. Western casino operators appreciate the immense opportunities afforded by the Asian markets, but judging by their performance abroad some have not adapted in ways necessary to survive and prosper. The purpose of this paper is to expose key differences between Asian and Western gaming jurisdictions. In light of these differences, it is a serious mistake for Western casino executives to follow an ethnocentric approach when planning marketing activities and customer service initiatives for Asian customers. To rectify this situation, a framework is advanced that will assist Western operators to adapt to Asian markets. Design/methodology/approach: Differences between Asian and Western gamblers in both their game preferences and behaviours are based upon cited data sources and upon the authors' observations during flied trips to various casino jurisdictions. When appropriate, insights gleaned from a series of informal interviews conducted with senior executives in Macau as well as gaming-related consulting conducted by the authors in both Asia and North America are shared, albeit for legal reasons the sources are confidential. The TROPICS framework presented herein was developed by the lead author and presented to senior gaming executives at the University of Nevada, Reno 2008 executive development program. The seven elements of this framework - now refined - are targeting, retention, organization, people, incentives, culture, and systems. Findings: This paper concludes that in order to better serve Asian markets, there is an urgent need to empirically assess patron behavior and the attendant casino marketing adaptations that will be required to succeed in these markets. Practical implications: A series of questions and issues related to each of the seven elements in the TROPICS framework are raised. The proposed framework is equally applicable to firms operating in Western countries as well as those in Asia; however, when put into practice, the outcome will be different marketing strategies adapted to each casino's market structure and macro-environment. Regardless of context, this systematic approach to strategy formulation will ensure consistency and alignment across various elements of strategy. Originality/value: The paper identifies the differences between Asian and Western gamblers to assist Western operators to adapt to Asian markets.

Original languageEnglish
Pages (from-to)320-331
Number of pages12
JournalWorldwide Hospitality and Tourism Themes
Volume1
Issue number4
DOIs
Publication statusPublished - 2009

Fingerprint

jurisdiction
customer
market
senior executive
marketing
management counsulting
targeting
Operator
Asia
Jurisdiction
Casino
Gaming
incentive
firm
organization
planning
methodology
interview
performance
Values

Cite this

@article{e01be2818f1f41ebbe66bb77f67f415f,
title = "Casino customers in Asian versus western gaming jurisdictions: Implications for western casino operators",
abstract = "Purpose: Most of the growth in casino expansion for the foreseeable future will take place in Asia. Western casino operators appreciate the immense opportunities afforded by the Asian markets, but judging by their performance abroad some have not adapted in ways necessary to survive and prosper. The purpose of this paper is to expose key differences between Asian and Western gaming jurisdictions. In light of these differences, it is a serious mistake for Western casino executives to follow an ethnocentric approach when planning marketing activities and customer service initiatives for Asian customers. To rectify this situation, a framework is advanced that will assist Western operators to adapt to Asian markets. Design/methodology/approach: Differences between Asian and Western gamblers in both their game preferences and behaviours are based upon cited data sources and upon the authors' observations during flied trips to various casino jurisdictions. When appropriate, insights gleaned from a series of informal interviews conducted with senior executives in Macau as well as gaming-related consulting conducted by the authors in both Asia and North America are shared, albeit for legal reasons the sources are confidential. The TROPICS framework presented herein was developed by the lead author and presented to senior gaming executives at the University of Nevada, Reno 2008 executive development program. The seven elements of this framework - now refined - are targeting, retention, organization, people, incentives, culture, and systems. Findings: This paper concludes that in order to better serve Asian markets, there is an urgent need to empirically assess patron behavior and the attendant casino marketing adaptations that will be required to succeed in these markets. Practical implications: A series of questions and issues related to each of the seven elements in the TROPICS framework are raised. The proposed framework is equally applicable to firms operating in Western countries as well as those in Asia; however, when put into practice, the outcome will be different marketing strategies adapted to each casino's market structure and macro-environment. Regardless of context, this systematic approach to strategy formulation will ensure consistency and alignment across various elements of strategy. Originality/value: The paper identifies the differences between Asian and Western gamblers to assist Western operators to adapt to Asian markets.",
author = "Kale, {Sudhir H.} and Spence, {Mark T.}",
year = "2009",
doi = "10.1108/17554210911002165",
language = "English",
volume = "1",
pages = "320--331",
journal = "Worldwide Hospitality and Tourism Themes",
issn = "1755-4217",
publisher = "Emerald Group Publishing Ltd.",
number = "4",

}

Casino customers in Asian versus western gaming jurisdictions : Implications for western casino operators. / Kale, Sudhir H.; Spence, Mark T.

In: Worldwide Hospitality and Tourism Themes, Vol. 1, No. 4, 2009, p. 320-331.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Casino customers in Asian versus western gaming jurisdictions

T2 - Implications for western casino operators

AU - Kale, Sudhir H.

AU - Spence, Mark T.

PY - 2009

Y1 - 2009

N2 - Purpose: Most of the growth in casino expansion for the foreseeable future will take place in Asia. Western casino operators appreciate the immense opportunities afforded by the Asian markets, but judging by their performance abroad some have not adapted in ways necessary to survive and prosper. The purpose of this paper is to expose key differences between Asian and Western gaming jurisdictions. In light of these differences, it is a serious mistake for Western casino executives to follow an ethnocentric approach when planning marketing activities and customer service initiatives for Asian customers. To rectify this situation, a framework is advanced that will assist Western operators to adapt to Asian markets. Design/methodology/approach: Differences between Asian and Western gamblers in both their game preferences and behaviours are based upon cited data sources and upon the authors' observations during flied trips to various casino jurisdictions. When appropriate, insights gleaned from a series of informal interviews conducted with senior executives in Macau as well as gaming-related consulting conducted by the authors in both Asia and North America are shared, albeit for legal reasons the sources are confidential. The TROPICS framework presented herein was developed by the lead author and presented to senior gaming executives at the University of Nevada, Reno 2008 executive development program. The seven elements of this framework - now refined - are targeting, retention, organization, people, incentives, culture, and systems. Findings: This paper concludes that in order to better serve Asian markets, there is an urgent need to empirically assess patron behavior and the attendant casino marketing adaptations that will be required to succeed in these markets. Practical implications: A series of questions and issues related to each of the seven elements in the TROPICS framework are raised. The proposed framework is equally applicable to firms operating in Western countries as well as those in Asia; however, when put into practice, the outcome will be different marketing strategies adapted to each casino's market structure and macro-environment. Regardless of context, this systematic approach to strategy formulation will ensure consistency and alignment across various elements of strategy. Originality/value: The paper identifies the differences between Asian and Western gamblers to assist Western operators to adapt to Asian markets.

AB - Purpose: Most of the growth in casino expansion for the foreseeable future will take place in Asia. Western casino operators appreciate the immense opportunities afforded by the Asian markets, but judging by their performance abroad some have not adapted in ways necessary to survive and prosper. The purpose of this paper is to expose key differences between Asian and Western gaming jurisdictions. In light of these differences, it is a serious mistake for Western casino executives to follow an ethnocentric approach when planning marketing activities and customer service initiatives for Asian customers. To rectify this situation, a framework is advanced that will assist Western operators to adapt to Asian markets. Design/methodology/approach: Differences between Asian and Western gamblers in both their game preferences and behaviours are based upon cited data sources and upon the authors' observations during flied trips to various casino jurisdictions. When appropriate, insights gleaned from a series of informal interviews conducted with senior executives in Macau as well as gaming-related consulting conducted by the authors in both Asia and North America are shared, albeit for legal reasons the sources are confidential. The TROPICS framework presented herein was developed by the lead author and presented to senior gaming executives at the University of Nevada, Reno 2008 executive development program. The seven elements of this framework - now refined - are targeting, retention, organization, people, incentives, culture, and systems. Findings: This paper concludes that in order to better serve Asian markets, there is an urgent need to empirically assess patron behavior and the attendant casino marketing adaptations that will be required to succeed in these markets. Practical implications: A series of questions and issues related to each of the seven elements in the TROPICS framework are raised. The proposed framework is equally applicable to firms operating in Western countries as well as those in Asia; however, when put into practice, the outcome will be different marketing strategies adapted to each casino's market structure and macro-environment. Regardless of context, this systematic approach to strategy formulation will ensure consistency and alignment across various elements of strategy. Originality/value: The paper identifies the differences between Asian and Western gamblers to assist Western operators to adapt to Asian markets.

UR - http://www.scopus.com/inward/record.url?scp=84874463130&partnerID=8YFLogxK

U2 - 10.1108/17554210911002165

DO - 10.1108/17554210911002165

M3 - Article

VL - 1

SP - 320

EP - 331

JO - Worldwide Hospitality and Tourism Themes

JF - Worldwide Hospitality and Tourism Themes

SN - 1755-4217

IS - 4

ER -