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Toward an Economically Sustainable Casino Industry: A Development of Customer Value Indicators Using an Analytic Hierarchy Process

Author

Listed:
  • Pyungyong Park

    (Paradise Group, Seoul 04617, Korea)

  • Donghan Kim

    (College of Hotel and Tourism Management, KyungHee University, Seoul 02447, Korea)

  • Sangmin Lee

    (College of Economics and Business Administration Department of Convention and Hotel Management, Hannam University, Deajeon 34430, Korea)

  • Jaehoon Whang

    (College of Government and Business, Yonsei University, Gangwon-do 26493, Korea)

Abstract

Today, the casino industry generates various economic effects and is being developed as the major tourism solution that can overcome the limitations of the tourist industry. With the economic benefits from the growth of casino industry in the world economy, we are to implement the policies to facilitate the growth of the industry, therefore, the scale of the international casino industry is on the rise, but the competitiveness on the national level is getting intensified. In order to survive in casino industry, it is necessary to make efforts to establish an economically sustainable casino company. To this end, in-depth study of the financial value of the casino industry for its customers is required and these efforts are important to enhance the competitiveness of the casino industry. In this study, we have made a meaningful approach to apply the customer’s life value to the casino industry. CLV means the financial value obtained by converting the profit to be obtained for a certain period of time from the customers into the present value based on the discount rate. Thus, the purpose of this study was to develop a model and indicators that can be objectively evaluated by finding the life value factor of a customer suitable for the casino industry. As a result, we formed the five components of customers’ lifetime value assessment model, thereby laying the foundation for management of the customers’ specific strategies and customers’ care. Based on the results of the study, the foundation for the competitive advantage in the casino industry could be established as we could contribute to ensure the substantiality of the competitiveness in casino industry.

Suggested Citation

  • Pyungyong Park & Donghan Kim & Sangmin Lee & Jaehoon Whang, 2018. "Toward an Economically Sustainable Casino Industry: A Development of Customer Value Indicators Using an Analytic Hierarchy Process," Sustainability, MDPI, vol. 10(11), pages 1-16, November.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:11:p:4255-:d:183557
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    References listed on IDEAS

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    1. Angelo Presenza & Antonio Messeni Petruzzelli & Angelo Natalicchio, 2019. "Business Model Innovation for Sustainability. Highlights from the Tourism and Hospitality Industry," Sustainability, MDPI, vol. 11(1), pages 1-5, January.

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