Exploratory Study on Service Quality Perceptions and Customer Loyalty: The Case of Taiwan Patrons in Macao Casinos

Abstract

In the major economies, the contribution from services is becoming more and more significantly to the total revenue. In Macao, majority of revenue came from casinos. In 2013, the Gross Gaming Revenue in Macao exceeded 360 billion patacas (around 45 billion US dollars), putting Macao at the top of all legal gambling jurisdiction worldwide. However, by end of October 2015, Macao has experienced an unprecedented year-on-year decline in Gross Gaming Revenue for eighteen consecutive months. Both the Macao government and the casino industry have declared diversification as their strategy to revive the market. Macao casino operators need to shift from over-reliance on mainland Chinese VIP gamblers to mass market patrons from diversified origins. Macao casinos are now competing hard for the million Taiwan visitors every year. It has never been more important for Macao casino management to be able to identify and measure factors that will affect gamblers’ perception on casino service quality, an antecedent to gambler loyalty.

This study is based on theories of service quality perception. Mixed qualitative and quantitative analyses were conducted on 105 Taiwan visitors who have gambled in Macao casinos during the previous twelve months. Exploratory nature of this study, the sample size and sampling method mandated findings of this study to be interpreted with discretion. Reliability and predictive validity of CASERV are confirmed. This study also confirms prior research by Zeng and Prentice (2014) that CASERV service quality perception dimensions have significant influence on gamblers’ attitudinal loyalty but not on behavioral loyalty. It is found that Taiwan gamblers, unlike mainland Chinese gamblers, rendered relatively low perception to food service of Macao casinos. Instead, service environment and game service are found to have strongest influence on their attitudinal loyalty. This study highlights implications for loyalty research and refinement to behavioral construct of CASERV.

Date of Award	8 Apr 2016
Original language	English
Awarding Institution	City University of Hong Kong
Supervisor	Douglas VOGEL (Supervisor)