Tuesday, November 1, 2011

Viva Las Vegas

 This past weekend, I was lucky enough to travel across the country and enjoy my very first trip to Las Vegas.  I went with my roommate and a few members of her family, as her dad promised her when she was 9 years old that he would take her to Vegas when she turned 21; needless to say, she never forgot it.  Since we were both “Vegas Virgins” (her uncle’s phrase, not mine), we were excited to see what this infamous city was all about.  As soon as we caught a glimpse of it from the plane, we were amazed.  Las Vegas Boulevard (affectionately known as “the Strip”) seems to pop out of the desert landscape that has little other than mountains and clustered housing developments.  As we walked through our hotel and the surrounding resorts, our Calloway-laden minds couldn’t help but reel; what kind of investment do companies need to make in order to be truly successful in this city?  How do they determine the capacity for these massive hotels?  How do you stand out in a city entrenched with major competition?  The questions kept flowing, and we spent a great deal of time just looking at everything in astonishment.  There was one activity that kept us occupied for the majority of our time in Las Vegas, though: gambling. 

I have never gambled before, and honestly have never thought that it was a particularly smart use of money, but I figured I’m in the city that is built on gamblers, so why not?  Throughout my time playing blackjack and video poker (on which I am now hooked), I learned many lessons of gambling that led to identifying numerous key consumer insights.  Within the hotel we were staying, there was no other way to get to the elevators, and consequently your hotel room, without passing through its massive casino.  This was one of the first things that struck me; even if a consumer is not coming to Vegas to gamble, the fact that they pass through this area multiple times a day increases their changes of “just trying once.”  Since that usually ends up not being the case, this layout is an extremely intelligent way in which hotels can lure guests into spending more money.  I was certainly one of those consumers that got swept up in the excitement of gambling, and often found myself passing by the casino’s numerous ATM machines, contemplating if I should take out more money.  The fees at these ATM’s are ridiculous, so I passed, but I did notice that on each machine, next to the cash dispenser is a big sticker emblazoned with “Gambling Problem?” with a hotline number underneath.  Both my roommate and I were amused by this strategic ad placement, but I felt that this approach is actually very effective as this organization is targeting the root of the problem: constantly taking more money from a banking account to fund an addiction.  This leads to another key consumer insight: when marketing is placed in the right place at the right time, consumers are more likely to respond.  By approaching the consumer right when they are taking their money out, just them and the machine, it could be more likely that they will respond rather than someone simply telling them “you have a gambling problem.”  Lastly, the trip taught me a basic principle of Vegas vacationing: complimentary services.  When you check in at the hotel, you have the opportunity to acquire a card that you either place in a machine or hand to the supervisor each time you play a game at a table.  If you play enough, the card collects points, and at the end of your trip you are given complimentary services based on how much you have played, such having your meal and room costs taken care of.  I feel that this is an ingenious system on the part of the hotels; whether a consumer wins or loses doesn’t matter as much if some of their trip costs are covered – even if they have a bad trip spending-wise, they are still willing to come back. 


Ultimately, we left Vegas with a bit more money in our pockets and amazing memories; the city is truly another world.  Not only did I have a ton of fun, I learned a lot about how this city remains one of the premiere tourist destinations in the world.  Its approach to consumer behavior, especially when it comes to gambling, reflects how the city’s industry works to keep people coming back again and again.  Like many others, I am now hooked, and cannot wait to return someday – Viva Las Vegas.  

Carolyn Toll

4 comments:

  1. I am jealous that you had a chance to visit the city! I would love to go to Vegas at least once in my life. Since I am a frequent poker player (indeed we have 2 weekly casual poker games in my apartment), I want to experience the atmosphere in Vegas. I’ve also heard that the hotels in Vegas give discounts to the customers who traveled to solely gamble, and I think that is a great marketing to get its consumers (not the most ethical way though). Moreover, those numerous ATM machines are very dangerous to the people with “gambling problems.” I’d better stay away from those ATM machines 

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  2. I think for the placement of the "Gambling Problem?" hotline is not much of an advertisement for the hotline. Rather, I think it was strategically place by the casino themselves. People with gambling problems usually won't know until it's too late. I think the placement is a ploy for the Casino to look more trusted. By putting the hotline there, they give out the illusion that they care about you, therefore consumers may be more willing to spend money at that casino because they believe that the casino can be trusted.

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  3. I gambling is a very interesting way to look at consumer decision making since the risk of the decisions is so high. I don't think most people at casinos follow a decision making model, instead I think they make choices based on the excitement of the atmosphere and they are influenced by the high amount of uncertainty following their decisions. A study found that people made more high-risk and irrational decisions in gambling after they had big losses. I think this might relate to people considering their sunk costs and having an optimism bias. I really enjoyed reading this post!

    The study: http://www.plosone.org/article/info:doi%2F10.1371%2Fjournal.pone.0009368

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  4. I agree that it is probable that the casino may have strategically placed the stickers by the ATM to make consumers feel safer while engaging in gambling. If this were really an effort to help people with gambling problems, I think a much more effective way to advertise the hotline would be to feature the gambling hotline logo/phone number as one of the icons that pop up on the slot machine screens. If people saw that icon come up over and over again, they may start to think about whether they actually have a problem. Of course the casinos would never want this, as I am sure it would turn off many consumers!

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