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Author:Lucas, A.F.
Dunn, W.T.
Singh, A.K.
Title:Estimating the short-term effect of free-play offers in a Las Vegas hotel casino
Journal:Journal of Travel & Tourism Marketing
2005 : VOL. 18:2, p. 53-68
Index terms:Cash flow
Customer relations
DIRECT SELLING
Gambling industry
USA
Language:eng
Abstract:This study examines the impact of direct mail offers to a Las Vegas hotel casino. The casino uses a common method in its field, direct mail offers to encourage repeat patronage by offering cash awards and free room nights. In spite of the obligatory play requirements these offers fail to be profitable. According to this study they produce negative cash flows. These incentives may become damaging, because it's likely that the increasing prevalence and value of direct marketing offers create feelings of entitlement, decreases in reservation prices and, eventually, decreases in brand equity.
SCIMA record nr: 259641
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