Service quality, segmentation and casino player retention

Competition is intense between casinos within the Asia-Pacific region and this creates pressure for casinos to implement strategies which can build competitive advantage. Building and maintaining service quality is one means of retaining customers and thus establishing competitive advantage. To achieve an appropriate balance between using resources efficiently and maximising customer profitability, some casinos have established a system of segmenting players by tier. Conducted in Asia, the current study investigated the relationship between casino service quality, player segments and customer retention using tiered segmentation. The results provide insights into how the various tiers of casino player perceive the key dimensions of service quality and how such perceptions affect future purchase intentions. A number of significant implications are identified for casino managers.