Examining the influence of casino attributes on baby boomers' satisfaction and loyalty in the casino industry

Abstract

The baby boomer market draws attention from the hospitality industry due to its economic power and substantial size. Despite the importance of this market segment, no empirical research to date has provided effective strategies to maximise baby boomer casino visitors' satisfaction and loyalty. The purposes of this study were: (1) to investigate possible casino attributes that influence baby boomer casino visitors' satisfaction levels and (2) to examine how these attributes influence satisfaction level, thus resulting in the formation of loyalty. Based on a literature review, five casino attributes influencing casino visitors' satisfaction were derived. Exploratory factor analysis conducted with 700 baby boomers resulted in the hypothesis that baby boomers' satisfaction with a casino is determined by five casino attributes: slot machines, table games, winning perception, non-gaming-related services, and promotions and benefits. Subsequent confirmatory factor analysis and structural equation modelling analysis revealed that four of the five casino attributes derived from the literature review are key antecedents of gaming satisfaction, attitudinal loyalty, and behavioural loyalty formation in the casino industry: slot machines, table games, non-gaming-related services, and winning perception. With regard to the fifth attribute, promotions and benefits were actually not found to heavily influence baby boomers' casino satisfaction and loyalty. Based on the findings, the key theoretical and managerial implications are discussed in the latter part of this article.