Non Cash Casino Demographics And Psychographics

Developing a highly targeted and focused development approach. Particularly tricky is the segmenting and targeting of the highly sought after high-end players. Casinos have always bent over backwards in trying to accommodate the needs, preferences, whims, and idiosyncrasies of their high rollers.

From lavish gifts to the redesigning of hotel rooms and suites, casinos will do almost anything to cater to the fancies and superstitions of their high-end customers.

Justin Hopley Saeco will Casino Cash Non And Psychographics Demographics you

At many large casinos, while the number of carded players may run into millions, fewer than five thousand customers contribute to more than 30 percent of gaming revenues. The preferred mode of marketing to high-rollers is one-on-one marketing. It is largely up to the casino host to schmooze with the high rollers so that they keep coming to the casino. The onus of retaining a high-roller thus squarely falls on the host. Marketing tools to retain the high-end segment typically involve functions and gifts.

High rollers are invited to all kinds of functions, from music concerts and boxing matches to wine-tasting gigs and golf tournaments to make them feel important. They are showered with comps and rewards so long as they continue to visit the casino and bet.

Despite this individualized attention, most casinos have no planned strategy in marketing to high-rollers as a group or to grow the size of this group. One-on-one marketing can be very expensive, and may not always yield optimum results.

Further, since no attempt is made to understand in depth the preferences and motivations of high rollers, money spent on advertising does little to retain existing high rollers or to attract new ones. Effective growth and retention of the high-end segments requires careful segmentation and sound data. These data need to provide decision makers a complete picture of their most valuable customers and establish commonalities across players.

With his in mind, I have developed a player information system just for high rollers. The High-End Player Personality Profile, Patterns, and Preferences HEP5 is a product that enables casinos to derive maximum revenues and enhance the gaming experience of high-end customers.

Unlike player management systems relying on limited information such as theoretical win and demographic data, HEP5 is a total solution for managing interactions with high rollers.

Not there with the Casino Demographics And Psychographics Cash Non

HEP5 software will allow you to store vital data on your high-end players. Typical fields of player knowledge would include: This intimate customer knowledge will make the task of casino hosts easier as they will have precise guidelines on how to treat each high-end player so as to maximize rapport and loyalty.

The MBTI test and associated model has become so famous that today many people refer to personality typing as the "MBTI," but in a rigorous sense this is not true; the MBTI is only one test instrument among several for determining personality types, though it is by far the most widely used. In a somewhat oversimplified nutshell, personality typing as defined by Myers and Briggs, essentially assumes that much of our personality can be defined by dividing it into four orthogonal or independent preference areas or scales: Within each scale we have a preference for one of two opposites that define the scale.

This makes for a total of 16 different combinations 2x2x2x2each of which defines one particular and unique personality archetype. There are several advantages on recording MBTI data on the high-end segment. There is a natural chemistry between individuals who share similar preferences or personality type. Wherever possible, an individual high roller could be paired with a host having the same personality profile to ensure chemistry and smooth interactions.

Players with the same personality profile could be invited to special functions or be seated at a same table in large functions so that they will experience camaraderie Non Cash Casino Demographics And Psychographics high satisfaction from the event. HEP5 provides data on individual as well as segment-wide contribution to revenues so that management can focus on development and retention of segments that make the most contribution to revenues. For example, management may decide to specifically cultivate those segments where the individual player contribution to revenues is greater than 0.

By uncovering Scatter Bonus Casino Lobby 2 Code median demographic and psychographic profile of players belonging to this group, special efforts can be made through advertising and other communication channels and marketing campaigns to attract new or potential customers with similar profiles, while reinforcing the patronage of existing customers.

With new casinos opening up in several areas which had thus far been monopolies or duopolies, properties located in previously sheltered markets have to increase their emphasis on the top-end customers to ensure their continued loyalty.

HEP5 provides an illustration of incorporating vital behavioral data and preference details about high-end players in the marketing information systems of casinos.

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  • Casino owners want to do a better job of identifying and attracting customers who lose the most money. “Our list overlaps somewhat with their list, but the lists are not identical. In addition, the team looked at ways that demographics could provide casino owners with valuable marketing insights.
  • programs, the role of social media, price sensitivity, key emotional drivers of loyalty, and demographic profiles of the casino customer. INTRODUCTION. Gambling has existed These models, however, are of limited value to business because they do not consider market-oriented criteria such as why people may select one.
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  • Notice that the characteristics fall into one of four segmentation categories: behavioral, demographic, geographic, or psychographic. We'll discuss each of these Harrah's, an entertainment and gaming company, gathers information about the people who gamble at its casinos. High rollers, or people who spend a lot of.
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Whether you use HEP5 or develop a solution in-house, make sure you harness the power of psychographic data to attract and retain your most valued customers.

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Psychographics Non Cash Demographics And Casino don't

Are divided Casino Chase Environmental Inc begin, players

  1. The “who” of consumer behavior in casino management involves issues such as player demographics and psychographics. a leisure activity; occupational gamblers, who believe that their skills will enable them to make money gambling; and compulsive gamblers, for whom gambling is not a rational, controllable process.:
    explaining the gambling behaviour of gamblers, but very accurate at the prediction of their future behaviour. • There are rarely differences in demographics or psychographics (e.g. how affluent they see themselves) between “light” and “heavy” buyers or bettors, only between buyers/bettors and non- buyers/bettors. This study compared demographic, behavioral and psychographic characteristics of land-based (n = ) and online gamblers (n = 63). .. Others perceive the benefits of online gambling as convenience, fun, excitement and entertainment, comfort that does not require driving, ability to win money, and anonymity and. This study additionally emphasizes the importance of considering demographics when investigating psychographics, as some of the psychographics related to gambling are conditioned on age. In addition, we find that online gamblers who also engage in other forms of gambling may be distinct from those who do not.
  2. Akinsete, Joseph, "Las Vegas visitor demographics: Be careful what you wish for" (). UNLV Theses .. and what they spend their money on while in the city. . The ultimate goal of attracting more visitors to Las Vegas was to increase gambling dollars. Visitor numbers increased, but hoteliers did not see the increase in.:
    One-on-one marketing can be very expensive, and may not always yield optimum results. Further, since no attempt is made to understand in depth the preferences and motivations of high rollers, money spent on advertising does little to retain existing high rollers or to attract new ones. A content analysis of. Going to a casino means more than just putting cash into a slot machine or playing some table games. The modern casino has high quality . Gamblers are less likely to place an emphasis on what God thinks of them when compared to non-gamblers in every demographic. Although both gamblers and.
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Despite this individualized attention, most casinos have no planned strategy in marketing to high-rollers as a group or to grow the size of this group. One-on-one marketing can be very expensive, and may not always yield optimum results. Further, since no attempt is made to understand in depth the preferences and motivations of high rollers, money spent on advertising does little to retain existing high rollers or to attract new ones.

Effective growth and retention of the high-end segments requires careful segmentation and sound data. These data need to provide decision makers a complete picture of their most valuable customers and establish commonalities across players. With his in mind, I have developed a player information system just for high rollers. The High-End Player Personality Profile, Patterns, and Preferences HEP5 is a product that enables casinos to derive maximum revenues and enhance the gaming experience of high-end customers.

Unlike player management systems relying on limited information such as theoretical win and demographic data, HEP5 is a total solution for managing interactions with high rollers. HEP5 software will allow you to store vital data on your high-end players. Typical fields of player knowledge would include: This intimate customer knowledge will make the task of casino hosts easier as they will have precise guidelines on how to treat each high-end player so as to maximize rapport and loyalty.

The MBTI test and associated model has become so famous that today many people refer to personality typing as the "MBTI," but in a rigorous sense this is not true; the MBTI is only one test instrument among several for determining personality types, though it is by far the most widely used.

In a somewhat oversimplified nutshell, personality typing as defined by Myers and Briggs, essentially assumes that much of our personality can be defined by dividing it into four orthogonal or independent preference areas or scales: Within each scale we have a preference for one of two opposites that define the scale.

This makes for a total of 16 different combinations 2x2x2x2 , each of which defines one particular and unique personality archetype. There are several advantages on recording MBTI data on the high-end segment. There is a natural chemistry between individuals who share similar preferences or personality type. Wherever possible, an individual high roller could be paired with a host having the same personality profile to ensure chemistry and smooth interactions. Players with the same personality profile could be invited to special functions or be seated at a same table in large functions so that they will experience camaraderie and high satisfaction from the event.

HEP5 provides data on individual as well as segment-wide contribution to revenues so that management can focus on development and retention of segments that make the most contribution to revenues. For example, management may decide to specifically cultivate those segments where the individual player contribution to revenues is greater than 0. Griffiths and Wood pose the notion that 'virtual cash' has a lower psychological value than 'real cash'. Online gaming sites offer free trials to allow players familiarize the person with online games and to improve their skills, with some researchers Sevigny et al.

Novice gamblers who experience a 'big-win' early in their career are highly correlated with becoming potential problem gamblers Wood and Williams, b. Concerns have been raised that adolescents are particularly at risk from problem gambling.

Wood and Williams a reported that online gamblers are more likely to be problem gamblers. This is approximately twice the rate for the whole Australian population. Their favorite activities are card games, poker machines, racing and sports betting, and internet gambling, with problem gamblers engaged in a wide range of gambling activities.

These results indicate that government legislation to limit online gambling through concern that young people will become habitual gamblers such as the Australian Government's Interactive Gambling Bill and U. The Diffusion of Innovation Model Rogers describes the spread of new ideas, things or practices in a social system.

In this model, 'innovators' are the first approximately 2. Using innovation adoption theory, internet gamblers could be classified as innovators. The continued penetration and use of internet services suggests that the early adopters and early majority will follow. If so, the divisions in socio-demographic profiles of internet users may evolve to align with general population patterns. Australian sports betting studies in and identified internet gamblers as young adults, predominately male, earning above the average with managerial or professional incomes Woolley, Some suggest a 'digital divide' exists where those people who are more familiar with computers and the use of the internet have a greater propensity to gamble online Howard et al.

North American studies identify 1. An Australian study comparing demographic characteristics of Generation X to Generation Y suggested that, despite the generations having similar gambling patterns, disposable income is a predictor of online gaming Lee and Pearce, A review of online gambling literature shows that internet gaming is more prevalent amongst men and younger segments of the population years Williams and Wood, Based upon the literature that suggests demographic factors influence the adoption of online gambling, the following hypothesis was tested: H1 There is difference between the demographics characteristics of land-based gamblers and online gamblers.

Some authors show little support for demographic factors predicting channel choice Bellman et al. Rather, behavioral characteristics, such as hours of internet use, online purchase frequency, and purchase amount, have been shown to correlate with using the internet for transactions.

Similarly, past behavior is considered a good predictor of future online transactional behaviors, with demographics age, income, and education having only a slight effect, and more so if a person is already connected to the internet Bellman et al. Other good predictors are a 'wired' lifestyle and time starvation Bellman et al. A wired lifestyle could be described as having used the internet for years, receiving many emails daily, using the internet as part of their daily job, and having a positive attitude towards information technology improving productivity, while time starvation is experienced by those who work long hours.

Indeed, the propensity for online e-commerce is greater in dual-income households and increases as the total number of hours worked by household members increases Bellman et al. Wood and Williams b argue the internet facilitates gamblers playing more frequently and for longer periods and thus has the potential for greater losses.

Based upon the literature that suggests behavioral characteristics influence the adoption of online gambling, the following hypothesis was tested: H2 There is difference between a gambler's behaviors when using land-based and online gambling channels.

Attitudes, innovativeness, and predispositions, not just usage, are required to predict consumption patterns Goldsmith, ; Phau and Poon, ; Vijayasarathy and Jones, Gamblers are attracted to the internet for many reasons, such as instantaneous results negligible time difference between placing bets and receiving results Breen, , lack of time limits, the private nature of online gaming to avoid the negative social stigma, the use of virtual money where the sense of loss may be diminished, and the availability at home or at the workplace.

Wood and Williams b suggest a link between problem gambling and internet gambling; however, it is unclear whether internet gambling leads to problem gambling or problem gamblers are attracted to online gaming.

Motivations for gambling are varied: Others perceive the benefits of online gambling as convenience, fun, excitement and entertainment, comfort that does not require driving, ability to win money, and anonymity and privacy American Gambling Association, Wood and Williams a found reasons for online gambling included relative convenience, comfort and ease, aversion to the atmosphere and clientele of tradition land-based alternatives, preference for the pace and nature of online gaming, and the potential for higher wins and lower overall expenditure.

Similarly, Griffiths and Barnes , in a small sample of British online gamblers, identified motivations for online gambling as ease of access, flexibility of use, hour availability, because friends do, large gambling choice, as a response to advertising, anonymity, demonstration games, and family members.

Based upon the literature that suggests psychographic characteristics influence the adoption of online gambling, the following hypothesis was tested: H3 There is a difference between gamblers reasons to gamble through land-based and online channels.

Online gamblers make up a small proportion of the general population and are difficult to identify. Consequently, this exploratory research used purposive sampling techniques, to investigate the first three hypotheses presented above.

The survey instrument was based on categories identified in the literature and developed in consultation with six marketing academics. Feedback from a pilot test was used to refine the survey questions. The final survey instrument comprised demographic questions, including income, a 5-item Likert scale to measure attitude, scale categorization to probe behavioral issues and nominal and scale categorization to explore demographic questions gender, vocation, education level, and marital status.

Three types of non-random sampling were used: The data were entered into an Excel spreadsheet for cleaning and transferred to SPSS for testing the hypotheses using independent t-tests and correlations. Possible limitations of the study include sampling error, resulting from the non-random sampling, and response bias, such as respondents feeling embarrassed about honestly answering the survey questions.

Therefore, the results are applicable only to those surveyed and are not transferable to the general population.

Despite these limitations, this exploratory research has produced preliminary findings on a phenomenon that is difficult to identify and investigate.

Results indicate a Cronbach alpha of 0. Missing respondent data were omitted from analysis. Where response data were missing, values were omitted from the analysis and therefore some items do not sum to The demographic profile of respondents was based upon gender, vocation, education, marital status, and annual income. Table 1 shows the number of individuals in each demographic category for land-based and online gamblers. The categorization of the demographic variables with the exception of gender was modified in order to carry out a more reliable and representative cross-tabulation analysis.

For instance, the income variable initially had seven categories, but was collapsed into only two: Once the distribution was obtained for each group, the non-parametric independent t-test Mann-Whitney Cox was employed to examine the statistical differences between each distribution outcome.

The findings are presented in tables 2 and 3. This negative z-score implies that students are spending more time and money than working people, for both OG and LBG. The other demographic categories showed no statistical differences.

No statically significant differences were observed; see Table 5. As online gambling research is in its infancy Lee and Pearce, ; Wood and Williams, a , this study addresses the need to better understand the rapidly expanding online gambling phenomenon that has the potential for significant negative personal, social, and economic consequences Productivity Commission, Using a variety of statistical methods, three hypotheses were tested.

The first hypothesis examined whether there is a difference between the demographic characteristics of LBG and OG. Woolley suggests that the demographic characteristics of OG are young adults, predominantly male, earning above the average with managerial and professional vocations. Lea and Pearce suggest disposable income has a positive correlation with online gambling. Analysis based upon gender, vocation, education, marital status, and income identified vocation as statistically significant.

Students spend greater time and money on gambling than people in full-time employment. However, both online and land-based gambling groups demonstrated similar characteristics and therefore it is argued that vocation is not a sufficiently distinguishing characteristic for identifying online gamblers.

Therefore, hypothesis H1 is not supported. The second hypothesis examined if there is difference between a gambler's behaviors when using land-based and online gambling channels. Three tests were employed to provide evidence to support or refute this hypothesis. A correlation between time, money, and internet use identified a significant positive correlation between money wagered and time spent on gambling. It is argued that this finding is a logical reflection of gamblers' behavior where greater time spent gambling generally means more money will be wagered on the activity.

A comparison of mean scores of OG and LBG for internet use, time spent gambling, and money spent did not reveal any statistically relationships. A comparison of mean scores of OG and LBG for methods of gambling reveals online gamblers engage in casino table games significantly more times per month.

The findings are similar to eCOGRA's study of OG, which identified internet casino gamblers as the most commonly reported online type of gambling with a high frequency of play compared with other online forms of gaming. Therefore, H2 is supported in part. The third hypothesis examined whether there is a difference between gamblers' reasons for gambling through land-based and online channels.

Two tests were employed to provide evidence to support or refute this hypothesis. A comparison of mean scores of OG and LBG for motivation revealed several significant statistical differences. Land-based gamblers are more likely to gamble for charity, atmosphere and excitement, as their favorite activity, as a social activity, and have a greater belief in the luck. A comparison of mean scores of OG and LBG for their perceptions of online gambling identified several statistically significant relationships.

Online gamblers are more likely to perceive online gambling as more exciting, convenient, able to be done in a private anytime, has better chances of winning, is less dangerous, and they can stop gambling any time. It is argued that the results of this analysis of gamblers' perceptions is logical, since if OG perceive greater benefits from online gambling, they will tend to use the channel. These results are similar to the American Gaming Association's study of perceived benefits of online gaming and correspond in part to the findings of Griffiths and Barnes Therefore, on balance of evidence, H3 is supported in part.

This research study has implications for the following groups: The unexpected finding that full-time students gamble more than people in full-time employment through online and land-based venues should alert policy makers of a potential problem for the student welfare.

Further research is required to understand the reasons why students demonstrate this behavior, and will thus inform on preventative strategies to reduce problem gambling within higher education student populations. The identification of behavioral and psychographic characteristics of OG contributes to the body of knowledge on online gambling and provides the basis of further research.

The identification of land-based gambling being perceived as more exciting, social, having greater luck, and as a favorite activity provides marketers with the opportunity to promote these benefits to their target audience to differentiate from low-cost online formats.

Further, LBG exhibit negative perceptions of online gambling compared with OG, who are familiar with the phenomenon. The perceptions of LBG on online gambling e. For example, land-based gaming venues can promote themselves as a 'safe and secure alternative' compared with online formats.

The next step is to expand this exploratory study to empirically examine these issues in a variety of contexts using probability sampling to reflect population trends. The focus of future research is to profile online gamblers, both in behavior and demographic patterns, to identify the role of the internet in satisfying the gamblers, and to identify the antecedent factors with regards to predicting the people who are at most risk of becoming problem gamblers so intervention strategies to reduce problem gambling can be introduced.

mentioned

Online gaming sites offer free trials to allow players familiarize the person with online games and to improve their skills, with some researchers Sevigny et al. Novice gamblers who experience a 'big-win' early in their career are highly correlated with becoming potential problem gamblers Wood and Williams, b.

Concerns have been raised that adolescents are particularly at risk from problem gambling. Wood and Williams a reported that online gamblers are more likely to be problem gamblers. This is approximately twice the rate for the whole Australian population. Their favorite activities are card games, poker machines, racing and sports betting, and internet gambling, with problem gamblers engaged in a wide range of gambling activities.

These results indicate that government legislation to limit online gambling through concern that young people will become habitual gamblers such as the Australian Government's Interactive Gambling Bill and U. The Diffusion of Innovation Model Rogers describes the spread of new ideas, things or practices in a social system. In this model, 'innovators' are the first approximately 2. Using innovation adoption theory, internet gamblers could be classified as innovators.

The continued penetration and use of internet services suggests that the early adopters and early majority will follow. If so, the divisions in socio-demographic profiles of internet users may evolve to align with general population patterns. Australian sports betting studies in and identified internet gamblers as young adults, predominately male, earning above the average with managerial or professional incomes Woolley, Some suggest a 'digital divide' exists where those people who are more familiar with computers and the use of the internet have a greater propensity to gamble online Howard et al.

North American studies identify 1. An Australian study comparing demographic characteristics of Generation X to Generation Y suggested that, despite the generations having similar gambling patterns, disposable income is a predictor of online gaming Lee and Pearce, A review of online gambling literature shows that internet gaming is more prevalent amongst men and younger segments of the population years Williams and Wood, Based upon the literature that suggests demographic factors influence the adoption of online gambling, the following hypothesis was tested: H1 There is difference between the demographics characteristics of land-based gamblers and online gamblers.

Some authors show little support for demographic factors predicting channel choice Bellman et al. Rather, behavioral characteristics, such as hours of internet use, online purchase frequency, and purchase amount, have been shown to correlate with using the internet for transactions. Similarly, past behavior is considered a good predictor of future online transactional behaviors, with demographics age, income, and education having only a slight effect, and more so if a person is already connected to the internet Bellman et al.

Other good predictors are a 'wired' lifestyle and time starvation Bellman et al. A wired lifestyle could be described as having used the internet for years, receiving many emails daily, using the internet as part of their daily job, and having a positive attitude towards information technology improving productivity, while time starvation is experienced by those who work long hours.

Indeed, the propensity for online e-commerce is greater in dual-income households and increases as the total number of hours worked by household members increases Bellman et al. Wood and Williams b argue the internet facilitates gamblers playing more frequently and for longer periods and thus has the potential for greater losses.

Based upon the literature that suggests behavioral characteristics influence the adoption of online gambling, the following hypothesis was tested: H2 There is difference between a gambler's behaviors when using land-based and online gambling channels.

Attitudes, innovativeness, and predispositions, not just usage, are required to predict consumption patterns Goldsmith, ; Phau and Poon, ; Vijayasarathy and Jones, Gamblers are attracted to the internet for many reasons, such as instantaneous results negligible time difference between placing bets and receiving results Breen, , lack of time limits, the private nature of online gaming to avoid the negative social stigma, the use of virtual money where the sense of loss may be diminished, and the availability at home or at the workplace.

Wood and Williams b suggest a link between problem gambling and internet gambling; however, it is unclear whether internet gambling leads to problem gambling or problem gamblers are attracted to online gaming.

Motivations for gambling are varied: Others perceive the benefits of online gambling as convenience, fun, excitement and entertainment, comfort that does not require driving, ability to win money, and anonymity and privacy American Gambling Association, Wood and Williams a found reasons for online gambling included relative convenience, comfort and ease, aversion to the atmosphere and clientele of tradition land-based alternatives, preference for the pace and nature of online gaming, and the potential for higher wins and lower overall expenditure.

Similarly, Griffiths and Barnes , in a small sample of British online gamblers, identified motivations for online gambling as ease of access, flexibility of use, hour availability, because friends do, large gambling choice, as a response to advertising, anonymity, demonstration games, and family members.

Based upon the literature that suggests psychographic characteristics influence the adoption of online gambling, the following hypothesis was tested: H3 There is a difference between gamblers reasons to gamble through land-based and online channels.

Online gamblers make up a small proportion of the general population and are difficult to identify. Consequently, this exploratory research used purposive sampling techniques, to investigate the first three hypotheses presented above.

The survey instrument was based on categories identified in the literature and developed in consultation with six marketing academics. Feedback from a pilot test was used to refine the survey questions. The final survey instrument comprised demographic questions, including income, a 5-item Likert scale to measure attitude, scale categorization to probe behavioral issues and nominal and scale categorization to explore demographic questions gender, vocation, education level, and marital status.

Three types of non-random sampling were used: The data were entered into an Excel spreadsheet for cleaning and transferred to SPSS for testing the hypotheses using independent t-tests and correlations. Possible limitations of the study include sampling error, resulting from the non-random sampling, and response bias, such as respondents feeling embarrassed about honestly answering the survey questions.

Therefore, the results are applicable only to those surveyed and are not transferable to the general population. Despite these limitations, this exploratory research has produced preliminary findings on a phenomenon that is difficult to identify and investigate.

Results indicate a Cronbach alpha of 0. Missing respondent data were omitted from analysis. Where response data were missing, values were omitted from the analysis and therefore some items do not sum to The demographic profile of respondents was based upon gender, vocation, education, marital status, and annual income.

Table 1 shows the number of individuals in each demographic category for land-based and online gamblers. The categorization of the demographic variables with the exception of gender was modified in order to carry out a more reliable and representative cross-tabulation analysis. For instance, the income variable initially had seven categories, but was collapsed into only two: Once the distribution was obtained for each group, the non-parametric independent t-test Mann-Whitney Cox was employed to examine the statistical differences between each distribution outcome.

The findings are presented in tables 2 and 3. This negative z-score implies that students are spending more time and money than working people, for both OG and LBG. The other demographic categories showed no statistical differences. No statically significant differences were observed; see Table 5. As online gambling research is in its infancy Lee and Pearce, ; Wood and Williams, a , this study addresses the need to better understand the rapidly expanding online gambling phenomenon that has the potential for significant negative personal, social, and economic consequences Productivity Commission, Using a variety of statistical methods, three hypotheses were tested.

The first hypothesis examined whether there is a difference between the demographic characteristics of LBG and OG. Woolley suggests that the demographic characteristics of OG are young adults, predominantly male, earning above the average with managerial and professional vocations.

Lea and Pearce suggest disposable income has a positive correlation with online gambling. Analysis based upon gender, vocation, education, marital status, and income identified vocation as statistically significant. Students spend greater time and money on gambling than people in full-time employment. However, both online and land-based gambling groups demonstrated similar characteristics and therefore it is argued that vocation is not a sufficiently distinguishing characteristic for identifying online gamblers.

Therefore, hypothesis H1 is not supported. The second hypothesis examined if there is difference between a gambler's behaviors when using land-based and online gambling channels. Three tests were employed to provide evidence to support or refute this hypothesis. A correlation between time, money, and internet use identified a significant positive correlation between money wagered and time spent on gambling. It is argued that this finding is a logical reflection of gamblers' behavior where greater time spent gambling generally means more money will be wagered on the activity.

A comparison of mean scores of OG and LBG for internet use, time spent gambling, and money spent did not reveal any statistically relationships. A comparison of mean scores of OG and LBG for methods of gambling reveals online gamblers engage in casino table games significantly more times per month. The findings are similar to eCOGRA's study of OG, which identified internet casino gamblers as the most commonly reported online type of gambling with a high frequency of play compared with other online forms of gaming.

Therefore, H2 is supported in part. The third hypothesis examined whether there is a difference between gamblers' reasons for gambling through land-based and online channels. Two tests were employed to provide evidence to support or refute this hypothesis. A comparison of mean scores of OG and LBG for motivation revealed several significant statistical differences. Land-based gamblers are more likely to gamble for charity, atmosphere and excitement, as their favorite activity, as a social activity, and have a greater belief in the luck.

A comparison of mean scores of OG and LBG for their perceptions of online gambling identified several statistically significant relationships. Online gamblers are more likely to perceive online gambling as more exciting, convenient, able to be done in a private anytime, has better chances of winning, is less dangerous, and they can stop gambling any time. It is argued that the results of this analysis of gamblers' perceptions is logical, since if OG perceive greater benefits from online gambling, they will tend to use the channel.

These results are similar to the American Gaming Association's study of perceived benefits of online gaming and correspond in part to the findings of Griffiths and Barnes Therefore, on balance of evidence, H3 is supported in part. This research study has implications for the following groups: The unexpected finding that full-time students gamble more than people in full-time employment through online and land-based venues should alert policy makers of a potential problem for the student welfare.

Further research is required to understand the reasons why students demonstrate this behavior, and will thus inform on preventative strategies to reduce problem gambling within higher education student populations.

The identification of behavioral and psychographic characteristics of OG contributes to the body of knowledge on online gambling and provides the basis of further research.

The identification of land-based gambling being perceived as more exciting, social, having greater luck, and as a favorite activity provides marketers with the opportunity to promote these benefits to their target audience to differentiate from low-cost online formats. Further, LBG exhibit negative perceptions of online gambling compared with OG, who are familiar with the phenomenon.

The perceptions of LBG on online gambling e. For example, land-based gaming venues can promote themselves as a 'safe and secure alternative' compared with online formats. The next step is to expand this exploratory study to empirically examine these issues in a variety of contexts using probability sampling to reflect population trends. The focus of future research is to profile online gamblers, both in behavior and demographic patterns, to identify the role of the internet in satisfying the gamblers, and to identify the antecedent factors with regards to predicting the people who are at most risk of becoming problem gamblers so intervention strategies to reduce problem gambling can be introduced.

ABS, Measures of a knowledqe-based economy and society, Australia. Which benefit is most important to you when you buy a toothpaste: If marketing professionals know what those benefits are, they can then tailor different toothpaste offerings to you and other people like you. Onscreen kissing was evidently too racy for the times. Another way in which businesses segment buyers is by their usage rates—that is, how often, if ever, they use certain products.

Companies are interested in frequent users because they want to reach other people like them. They are also keenly interested in nonusers and how they can be persuaded to use products. The way in which people use products is also be a basis for segmentation.

Avon Skin So Soft was originally a beauty product, but after Avon discovered that some people were using it as a mosquito repellant, the company began marketing it for that purpose. Some of the ways in which people use the product are pretty unusual, as evidenced by the following comment posted on the site: Encouraging consumers to use your products for multiple purposes is a smart marketing strategy. She is now thinking of trading him in for a hedgehog. Segmenting buyers by personal characteristics such as age, income, ethnicity and nationality, education, occupation, religion, social class, and family size is called demographic segmentation.

Demographics are commonly utilized to segment markets because demographic information is publicly available in databases around the world. You can obtain a great deal of demographic information on the U. Other government Web sites you can tap include FedStats http: In addition to current statistics, the sites contain forecasts of demographic trends, such as whether some segments of the population are expected to grow or decline.

At this point in your life, you are probably more likely to buy a car than a funeral plot. Marketing professionals know this. Into which category do you fall? The baby boomer generation is the second largest, and over the course of the last thirty years or so, has been a very attractive market for sellers. Baby boomers are aging and the size of the group will eventually decline. However, a recent survey found that the latest recession had forced teens to change their spending habits and college plans and that roughly half of older Generation Yers reported they had no savings 1.

So which group or groups should your firm target? Several companies have introduced lower-cost brands targeting Generation Xers, who have less spending power than boomers. For example, kitchenware and home-furnishings company Williams-Sonoma opened the Elm Street chain, a less-pricey version of the Pottery Barn franchise.

The video game market is very proud of the fact that along with Generation X and Generation Y, many older Americans still play video games. You probably know some baby boomers who own a Nintendo Wii.

Products and services in the spa market used to be aimed squarely at adults, but not anymore. Parents are now paying for their tweens to get facials, pedicures, and other pampering in numbers no one in years past could have imagined. Watch the YouTube video to see a fun generational type of advertisement. As early as the s, U. Plus, Japanese cars had developed a better reputation. Despite the challenges U. If you are a car buff, you perhaps have noticed that the once-stodgy Cadillac now has a sportier look and stiffer suspension.

Likewise, the Chrysler looks more like a muscle car than the old Chrysler Fifth Avenue your great-grandpa might have driven. Automakers have begun reaching out to Generations X and Y, too. General Motors GM has sought to revamp the century-old company by hiring a new younger group of managers—managers who understand how Generation X and Y consumers are wired and what they want. Companies have to develop new products designed to appeal to Generations X and Y and also find new ways to reach them.

People in these generations not only tend to ignore traditional advertising but also are downright annoyed by it. To market to Scion drivers, who are generally younger, Toyota created Scion Speak, a social networking site where they can communicate, socialize, and view cool new models of the car. Online events such as the fashion shows broadcast over the Web are also getting the attention of younger consumers, as are text, e-mail, and Twitter messages they can sign up to receive so as to get coupons, cash, and free merchandise.

Advergames are likewise being used to appeal to the two demographic groups. Advergames are electronic games sellers create to promote a product or service. Would you like to play one now? Click on the following link to see a fun one created by Burger King to advertise its Tender Crisp Chicken. He will do anything you want—well, almost anything. Tweens might appear to be a very attractive market when you consider they will be buying products for years to come.

But would you change your mind if you knew that baby boomers account for 50 percent of all consumer spending in the United States? Americans over sixty-five now control nearly three-quarters of the net worth of U.

Higher education levels usually result in higher paying jobs and greater social status. The makers of upscale products such as Rolexes and Lamborghinis aim their products at high-income groups. However, a growing number of firms today are aiming their products at lower-income consumers. Firms are finding that this group is a large, untapped pool of customers who tend to be more brand loyal than most. If you capture enough of them, you can earn a profit von Hoffman, Based on the targeted market, businesses can determine the location and type of stores where they want to sell their products.

Automobile companies may segment markets based on income, age, social class, and gender. Companies are aware that many consumers want to be in higher income groups and behave like they are already part of them. Gender is another way to segment consumers. Men and women have different needs and also shop differently. Consequently, the two groups are often, but not always, segmented and targeted differently. For example, because women make many of the purchases for their households, market researchers sometimes try to further divide them into subsegments.

Men are also often subsegmented. For women, those segments might include stay-at-home housewives, plan-to-work housewives, just-a-job working women, and career-oriented working women.

Research has found that women who are solely homemakers tend to spend more money, perhaps because they have more time. Considering the rising number of U. In addition to segmenting by gender, market researchers might couple gender with marital status and other demographic characteristics. For, example, did you know that more women in America than ever before 51 percent now live without spouses?

Can you think of any marketing opportunities this might present? For example, if you have no children, your demand for pediatric services medical care for children is likely to be slim to none, but if you have children, your demand might be very high because children frequently get sick. A secondary segment of interested consumers might be grandparents who are likely to spend less on day-to-day childcare items but more on special-occasion gifts for children.

Think about brides and want-to-be brides and all the products targeted at them, including Web sites and television shows such as Say Yes to the Dress , My Fair Wedding , Platinum Weddings , and Bridezillas. Wikimedia Commons — public domain. Resorts also segment vacationers depending on where they are in their family life cycles. When you think of family vacations, you probably think of Disney resorts. Some vacation properties, such as Sandals, exclude children from some of their resorts.

Perhaps they do so because some studies show that the market segment with greatest financial potential is married couples without children Hill, et. For example, over the past few decades U. The trends toward larger cars and larger houses appear to be reversing. High energy costs, the credit crunch, and concern for the environment are leading people to demand smaller houses. To attract people such as these, D. Hispanic Americans are the largest and the fastest-growing minority in the United States.

Companies are going to great lengths to court this once overlooked group. In California, the health care provider Kaiser Permanente runs television ads letting members of this segment know that they can request Spanish-speaking physicians and that Spanish-speaking nurses, telephone operators, and translators are available at all of its clinics Berkowitz, African Americans are the second-largest ethnic group in America.

Collectively, they have the most buying power of any ethnic group in America. Many people of Asian descent are known to be early adapters of new technology and have above-average incomes. Ethnic Segments and Their Spending. As you can guess, even within various ethnic groups there are many differences in terms of the goods and services buyers choose. Consequently, painting each group with a broad brush would leave you with an incomplete picture of your buyers. For example, although the common ancestral language among the Hispanic segment is Spanish, Hispanics trace their lineages to different countries.

All Asians share is race. Chinese, Japanese, and Korean immigrants do not share the same language 2. Moreover, both the Asian and Hispanic market segments include new immigrants, people who immigrated to the United States years ago, and native-born Americans. So what language will you use to communicate your offerings to these people, and where? Subsegmenting the markets could potentially help you. New American Dimension, a multicultural research firm, has further divided the Hispanic market into the following subsegments:.

You could go so far as to break down segments to the individual level, which is the goal behind one-to-one marketing.

However, doing so would be dreadfully expensive, notes Juan Guillermo Tornoe, a marketing expert who specializes in Hispanic marketing issues. After all, are you really going to develop different products and different marketing campaigns and communications for each group? Suppose your great new product or service idea involves opening a local store. Before you open the store, you will probably want to do some research to determine which geographical areas have the best potential. For instance, if your business is a high-end restaurant, should it be located near the local college or country club?

If you sell ski equipment, you probably will want to locate your shop somewhere in the vicinity of a mountain range where there is skiing. You might see a snowboard shop in the same area but probably not a surfboard shop. By contrast, a surfboard shop is likely to be located along the coast, but you probably would not find a snowboard shop on the beach. Geographic segmentation divides the market into areas based on location and explains why the checkout clerks at stores sometimes ask for your zip code.

When the coupons are redeemed, the store can find out where its customers are located—or not located. Geocoding is a process that takes data such as this and plots it on a map. Geocoding can help businesses see where prospective customers might be clustered and target them with various ad campaigns, including direct mail. The idea is that housing areas in different zip codes typically attract certain types of buyers with certain income levels.

Type in your zip code, and you will see customer profiles of the types of buyers who live in your area. Click on the profiles on the Claritas site to see which one most resembles you. The bureau was also able to identify segments significantly different from the Chicago segment, including blue-collar adults in the Cleveland area who vacation without their children. The organization then created significantly different marketing campaigns to appeal to each group.

City size and population density the number of people per square mile are also used for segmentation purposes. Virgin Mobile is helping stores capitalize on proximity marketing by sending text messages to Virgin Mobile users when they opt to receive them. Proximity marketing is an interesting new technology firms are using to segment and target buyers geographically within a few hundred feet of their businesses using wireless technology.

To learn about how proximity marketing works at a real company, listen to Apurva Ghelani in this audio clip.

Ghelani is a senior sales engineer for Air2Web, a company that helps businesses promote their brands and conduct transactions with people via their mobile phones.

In addition to figuring out where to locate stores and advertise to customers in that area, geographic segmentation helps firms tailor their products.

Market researchers also look at migration patterns to evaluate opportunities. TexMex restaurants are more commonly found in the southwestern United States. However, northern states are now seeing more of them as more people of Hispanic descent move northward. If your offering fulfills the needs of a specific demographic group, then the demographic can be an important basis for identifying groups of consumers interested in your product. What if your product crosses several market segments? Some consumers might be interested in the fiber, some consumers especially children may be interested in the prize that comes in the box, other consumers may be interested in the added vitamins, and still other consumers may be interested in the type of grains.

Associating these specific needs with consumers in a particular demographic group could be difficult. Marketing professionals want to know why consumers behave the way they do, what is of high priority to them, or how they rank the importance of specific buying criteria. Think about some of your friends who seem a lot like you. Have you ever gone to their homes and been shocked by their lifestyles and how vastly different they are from yours?

Why are their families so much different from yours? Psychographic segmentation can help fill in some of the blanks. Psychographic information is frequently gathered via extensive surveys that ask people about their activities, interests, opinion, attitudes, values, and lifestyles.

SRI asked thousands of Americans the extent to which they agreed or disagreed with questions similar to the following: Based on their responses to different questions, consumers were divided up into the following categories, each characterized by certain buying behaviors.

VALS surveys have been adapted and used to study buying behavior in other countries, too. As a result, you can gauge what the buying habits of people in certain zip codes are, which can be helpful if you are trying to figure out where to locate stores and retail outlets. Quantitative information can be improved with qualitative information you gather by talking to your customers and getting to know them.

Recall that this is how Healthy Choice frozen dinners were created. Consumer insight is what results when you use both types of information. You want to be able to answer the following questions:.

Best Buy asked store employees to develop insight about local consumer groups in order to create special programs and processes for them. Employees in one locale invited a group of retirees to their store to explain how to make the switch to digital television. How much did it cost?

The total cost included ninety-nine dollars in labor costs plus coffee and donuts. Then they use the insights they gain to improve the next version of Quicken. Contrast this story with that of a competing firm.

This company is now struggling to stay in business. To read about some of the extreme techniques Nokia uses to understand cell phone consumers around the world, click on the following link:

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If your offering fulfills the needs of a specific demographic group, then the demographic can be an important basis for identifying groups of consumers interested in your product.

What if your product crosses several market segments? Some consumers might be interested in the fiber, some consumers especially children may be interested in the prize that comes in the box, other consumers may be interested in the added vitamins, and still other consumers may be interested in the type of grains.

Associating these specific needs with consumers in a particular demographic group could be difficult. Marketing professionals want to know why consumers behave the way they do, what is of high priority to them, or how they rank the importance of specific buying criteria. Think about some of your friends who seem a lot like you. Have you ever gone to their homes and been shocked by their lifestyles and how vastly different they are from yours?

Why are their families so much different from yours? Psychographic segmentation can help fill in some of the blanks. Psychographic information is frequently gathered via extensive surveys that ask people about their activities, interests, opinion, attitudes, values, and lifestyles. SRI asked thousands of Americans the extent to which they agreed or disagreed with questions similar to the following: Based on their responses to different questions, consumers were divided up into the following categories, each characterized by certain buying behaviors.

VALS surveys have been adapted and used to study buying behavior in other countries, too. As a result, you can gauge what the buying habits of people in certain zip codes are, which can be helpful if you are trying to figure out where to locate stores and retail outlets. Quantitative information can be improved with qualitative information you gather by talking to your customers and getting to know them.

Recall that this is how Healthy Choice frozen dinners were created. Consumer insight is what results when you use both types of information. You want to be able to answer the following questions:. Best Buy asked store employees to develop insight about local consumer groups in order to create special programs and processes for them.

Employees in one locale invited a group of retirees to their store to explain how to make the switch to digital television.

How much did it cost? The total cost included ninety-nine dollars in labor costs plus coffee and donuts. Then they use the insights they gain to improve the next version of Quicken. Contrast this story with that of a competing firm. This company is now struggling to stay in business. To read about some of the extreme techniques Nokia uses to understand cell phone consumers around the world, click on the following link: Many of the same bases used to segment consumer markets are also used to segment B2B markets.

For example, Goya Foods is a U. Likewise, B2B sellers often divide their customers by geographic areas and tailor their products to them accordingly. Segmenting by behavior is common as well. B2B sellers frequently divide their customers based on their product usage rates. Customers that order many goods and services from a seller often receive special deals and are served by salespeople who call on them in person. Researchers Matthew Harrison, Paul Hague, and Nick Hague have theorized that there are fewer behavioral and needs-based segments in B2B markets than in business-to-consumer B2C markets for two reasons: Instead, businesses are concerned solely with buying products that will ultimately increase their profits.

According to Harrison, Hague, and Hague, the behavioral, or needs-based, segments in B2B markets include the following:. B2B sellers, like B2C sellers, are exploring new ways to reach their target markets. Trade shows and direct mail campaigns are two traditional ways of reaching B2B markets.

Companies are also creating blogs with cutting-edge content about new products and business trends of interest to their customers. For a fraction of the cost of attending a trade show to exhibit their products, B2B sellers are holding Webcasts and conducting online product demonstrations for potential customers. Segmentation bases are criteria used to classify buyers.

The main types of buyer characteristics used to segment consumer markets are behavioral, demographic, geographic, and psychographic. Behavioral segmentation divides people and organization into groups according to how they behave with or toward products.

Segmenting buyers by personal characteristics such as their age, income, ethnicity, family size, and so forth is called demographic segmentation. Geographic segmentation involves segmenting buyers based on where they live.

Psychographic segmentation seeks to differentiate buyers based on their activities, interests, opinions, attitudes, values, and lifestyles. Oftentimes a firm uses multiple bases to get a fuller picture of its customers and create value for them. Marketing professionals develop consumer insight when they gather both quantitative and qualitative information about their customers.

Many of the same bases used to segment consumer markets are used to segment business-to-business B2B markets. However, there are generally fewer behavioral-based segments in B2B markets. Paul Peter New York: McGraw-Hill Professional, , Kuhlmeier, and Jacqueline K. This is a derivative of Principles of Marketing by a publisher who has requested that they and the original author not receive attribution, which was originally released and is used under CC BY-NC-SA.

For uses beyond those covered by law or the Creative Commons license, permission to reuse should be sought directly from the copyright owner. Learning Objectives Understand and outline the ways in which markets are segmented. Explain why marketers use some segmentation bases versus others. Types of Segmentation Bases Table 5. For now, you can get a rough idea of what the categories consist of by looking at them in terms of how marketing professionals might answer the following questions: What benefits do customers want, and how do they use our product?

How do the ages, races, and ethnic backgrounds of our customers affect what they buy? Where are our customers located, and how can we reach them? What products do they buy based on their locations? What do our customers think about and value?

How do they live their lives? Segmenting by Behavior Behavioral segmentation divides people and organization into groups according to how they behave with or act toward products. Segmenting by Demographics Segmenting buyers by personal characteristics such as age, income, ethnicity and nationality, education, occupation, religion, social class, and family size is called demographic segmentation. Age At this point in your life, you are probably more likely to buy a car than a funeral plot.

Not all demographers agree on the cutoff dates between the generations. Video Clip Evian Water: Burger King Advergame http: Income Tweens might appear to be a very attractive market when you consider they will be buying products for years to come. Gender Gender is another way to segment consumers. Segmenting by Geography Suppose your great new product or service idea involves opening a local store. Audio Clip Interview with Apurva Ghelani http: Segmenting by Psychographics If your offering fulfills the needs of a specific demographic group, then the demographic can be an important basis for identifying groups of consumers interested in your product.

Innovators are successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. Image is important to Innovators, not as evidence of status or power but as an expression of their taste, independence, and personality.

Innovators are among the established and emerging leaders in business and government, yet they continue to seek challenges. Their lives are characterized by variety. Their possessions and recreation reflect a cultivated taste for the finer things in life. Thinkers are motivated by ideals. They are mature, satisfied, comfortable, and reflective people who value order, knowledge, and responsibility. They tend to be well educated and actively seek out information in the decision-making process.

They are well informed about world and national events and are alert to opportunities to broaden their knowledge. Thinkers have a moderate respect for the status quo institutions of authority and social decorum but are open to consider new ideas.

Although their incomes allow them many choices, Thinkers are conservative, practical consumers; they look for durability, functionality, and value in the products they buy. Motivated by the desire for achievement, Achievers have goal-oriented lifestyles and a deep commitment to career and family. Their social lives reflect this focus and are structured around family, their place of worship, and work. Achievers live conventional lives, are politically conservative, and respect authority and the status quo.

They value consensus, predictability, and stability over risk, intimacy, and self-discovery. With many wants and needs, Achievers are active in the consumer marketplace. Image is important to Achievers; they favor established, prestige products and services that demonstrate success to their peers. Because of their busy lives, they are often interested in a variety of timesaving devices.

Experiencers are motivated by self-expression. As young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Within each scale we have a preference for one of two opposites that define the scale. This makes for a total of 16 different combinations 2x2x2x2 , each of which defines one particular and unique personality archetype.

There are several advantages on recording MBTI data on the high-end segment. There is a natural chemistry between individuals who share similar preferences or personality type. Wherever possible, an individual high roller could be paired with a host having the same personality profile to ensure chemistry and smooth interactions. Players with the same personality profile could be invited to special functions or be seated at a same table in large functions so that they will experience camaraderie and high satisfaction from the event.

HEP5 provides data on individual as well as segment-wide contribution to revenues so that management can focus on development and retention of segments that make the most contribution to revenues. For example, management may decide to specifically cultivate those segments where the individual player contribution to revenues is greater than 0.

By uncovering the median demographic and psychographic profile of players belonging to this group, special efforts can be made through advertising and other communication channels and marketing campaigns to attract new or potential customers with similar profiles, while reinforcing the patronage of existing customers.

With new casinos opening up in several areas which had thus far been monopolies or duopolies, properties located in previously sheltered markets have to increase their emphasis on the top-end customers to ensure their continued loyalty. HEP5 provides an illustration of incorporating vital behavioral data and preference details about high-end players in the marketing information systems of casinos.

Whether you use HEP5 or develop a solution in-house, make sure you harness the power of psychographic data to attract and retain your most valued customers. Services offered by GamePlan include: You can write to Sudhir at skale gameplanconsultants. Iyengar and Eliashberg suggested that more useful information could have been gathered if they had been given more specific demographic data.

While the characteristics they studied are fairly unique to the gaming industry, the authors said there are other business situations in which customers can be identified and targeted based on their specific skills or unusual customer behavior. For instance, they noted that better modeling of customer behavior might help hotel managers to more intelligently market the use of mini-bars or business centers, or allow car-rental firms to target extra-cost products like GPS units or satellite radios.

But it is the sheer size of the casino industry in the United States that makes it such a strong candidate for this kind of individualized predictive modeling, more commonly known as database marketing. Americans spend more money on gaming than on trips to the cinema by a ratio, and more money is lost during a typical casino visit than is spent in an average visit to a mall.

Unique aspects of the casino industry suggest that casino operators should be developing different tools for customer relationship management than, for example, mall operators — who analyze how much customers spend on a typical visit to a store and what products they purchased. Through the use of gaming loyalty cards and other tools, casino executives have the ability to more closely track the performance of individual gamers.

Does the customer wager more on slot machines or at the tables? You also have to look at the skill level. You need a model for human beings. Iyengar and Eliashberg noted that casinos already perform broad mathematical calculations — based on aggregate behavior — in an effort to predict their overall revenues and profits.

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