Abstract
In an increasingly competitive marketplace, hospitality firms need to increase their competitiveness by improving their service quality. Apart from maintaining quality products and service delivery, enough attention should also be paid to the physical settings and design because it could affect a customer’s total service experience. It is necessary to first understand the preferences of customers for design types and physical settings to offer products that meet their needs. This study focuses on the casino design preferences of Mainland Chinese customers who are a major source of customers for many casinos including those in Macao. Twenty-five Mainland Chinese gamblers who have visited casinos in Macao were interviewed. A total of 30 preferences were identified, which were further grouped into the following 11 categories: spaciousness and openness; architectural style; exterior design; interior decor; theme; signage; floor layout; color; air temperature and quality; lighting; and greenery/natural landscape. Practical implications are discussed and future research directions are provided.
Introduction
In an increasingly competitive marketplace, hospitality firms need to increase their competitiveness by improving their service quality (Kandampully, 2000). To enhance a firm’s service quality, apart from maintaining quality products and service delivery, enough attention should also be paid to the physical settings and design because it could affect a customer’s total service experience (Bitner, 1992; Brady and Cronin, 2001; Lucas, 2003; Parasuraman et al., 1998; Lucas, 2003). Brady and Cronin (2001) have conceptualized quality of service as driven by three major drivers: service product (e.g. game and meal), service environment (e.g. ambient conditions and decor), and service delivery (e.g. attitudes of the service providers that affect the interactions between service providers and the customers). Each of the three components has effects on a customer’s total service experiences. There is research showing that the supplementary services, such as the physical setting and the service delivery process, greatly facilitate the use of the core service (Bitner, 1992; Hightower et al., 2002). In the casino sector, Lucas’s (2003) study reported that casino navigation, interior decor, and ambient conditions had significant effects on slot patron satisfaction.
Despite the increased emphasis on the physical environment and design in the casino business, little research has been carried out on this topic. The existing literature examines the relationships between general ambient conditions (e.g. lighting, seating, and layout) and gambler satisfaction (Johnson et al., 2004; Wong and Fong, 2010; Yi and Busser, 2008) and the effects of physical setting on gambling behaviors and moods (Finlay et al., 2006, 2011; Noseworthy and Finlay, 2009). No studies, as far as we know, have examined customers’ preferences on casino design. Casino design goes beyond merely decor and internal ambient conditions, to include sizes, shapes, styles, the interior and exterior architecture, the layout of the gambling equipment, the traffic flow pattern, focal points, signage, color, and lighting (Friedman, 2000; Katsigris and Thomas, 1999).
This study focuses on examining the Mainland Chinese customers’ preferences on casino design using Macao 1 as a case study. Mainland Chinese customers were selected because they are an important source of customers to many casinos in different parts of the world, especially Macao. Macao is a world-famous gaming capital and is the only place in the People’s Republic of China in which commercial gambling is permitted. It has had more than 150 years of experience in the gambling sector. Macao’s casino gaming industry plays a significant role in the city’s economy. It currently accounts for more than 50% of Macao’s gross domestic product (GDP), 14% of its total employment, and 80% of government revenue (Wan and Pinheiro, 2011). By 2006, the gaming revenues had reached a record annual high of US$10.33 billion, far exceeding the US$6.6 billion made on the Las Vegas Strip (Gaming Inspection and Coordination Bureau of the Macao SAR Government, 2010). The liberalization of casino licensing in 2002 and the implementation of the Chinese government’s new visa regulations in 2003, which permit many Mainland Chinese to travel to Hong Kong and Macao on an individual basis, triggered a boom in the tourism and gaming industry. The numbers of tourists jumped from 11 million in 2002 to nearly 28 million in 2011 (DSEC, 2012). Chinese customers are now the major source of tourists, accounting for nearly 90% of the total number of visitors. In particular, 57.7% of visitors to Macao were from Mainland China and the rest from Hong Kong (27.7%) and Taiwan (4.3%) (DSEC, 2012).
After a public tendering process in 2001, the government finally awarded casino concessions to three syndicates: SJM, Wynn Resorts SA, and Galaxy Casino SA. Three additional sub-concessions were created in 2006: MGM Grand Paradise (a venture between Stanley Ho’s daughter, Pansy Ho, and MGM Grand), Melco-PBL (a partnership managed by Stanley Ho’s son, Lawrence Ho, and an Australian, James Packer), and Las Vegas Sands (run by Sheldon Adelson). These six companies are now completely independent of each other contractually and have built separate and competing casino properties. Macao now has the Lisboa Casino that has been run by the SJM group for more than 40 years and several world-famous casino resorts, such as Wynn Macau, Venetian Macua Resort Hotel, MGM Grand, City of Dreams, Crown Casino hotel, the Starworld Casino, and Galaxy Resort, which are run by a new casino operator.
Each casino has its own unique style, theme, and design. For instance, the Venetian and Wynn Resort copied almost the same Venetian and Wynn resorts from Las Vegas to Macau, bringing customers a new Western casino experience with a variety of entertainment, accommodation, shopping, and dining options. The Galaxy Resort, however, has injected more water and nature components (i.e. an oasis resort, gardens, a man-made waterfall, and an artificial beach) into their resort design (Galaxy Resort, 2011). With competition increasing amongst the casinos in Macao, improving the tangible service environment in terms of the casinos’ interior and exterior design is, therefore, crucial to increase the attractiveness of the casinos.
The analyses of the preferences of the Mainland Chinese gamblers for casino design will: help fill some of the void in this research area; provide some insights for casino operators of the design approaches that best suit the Mainland Chinese gamblers who are an important source of customers to casinos; and identify areas for future research regarding casino design and customer satisfaction and experience.
Literature review
The role of the physical environment on perceived service quality
Researchers have defined quality in different ways and there has been no agreed definition of service quality (Kandampully, 2000). It has been variously defined as value (Feigenbaum, 1956), conformance to requirements (Crosby, 1979), fitness for use (Juran, 1980), and meeting customers’ expectations (Parasuraman et al., 1988). However, within the service sector, quality is often defined from a customer’s perspective and should aim to meet customers’ expectations (Parasuraman et al., 1988). It has been defined and conceptualized as an attitude related to satisfaction and resulting from a comparison of customers’ expectations with perceptions of performance (Parasuraman et al., 1988).
In measuring service quality, an instrument called SERVQUAL, which was introduced by Parasuraman et al. in 1985, has been commonly used. It measures the gap between customers’ expectations and the performance they actually experience in five dimensions, namely, “tangibles,” “reliability,” “responsiveness,” “assurance,” and “empathy,” through two sets of 20 statements, rated on a seven-point Likert scale (Parasuraman et al., 1985). The smaller the gap, the better the quality of service and the greater the customer satisfaction. This tangible dimension in the SERVQUAL model illustrates the important roles played by physical settings on customers’ perceptions of the service quality of a firm.
Rust and Oliver (1994) and Brady and Cronin (2001) further proposed a three-component service-quality-unified model to measure service quality and experience. The model suggests that customers’ evaluation of service quality provided by the service encounter involves three aspects: service product, service delivery, and service environment. Service product refers to the technical aspect of a service encounter, which includes the core or actual services consumers receive (Rust and Oliver, 1994). Examples include table and slot games in a casino (Wong and Fong, 2010) and a meal consumed in a restaurant. Service delivery, however, represents the interactions between the service providers, particularly front-line employees, and the customers (Brady and Cronin, 2001; Rust and Oliver, 1994). Finally, service environment represents the tangible attributes of a service encounter. It refers to the physical environment or the servicescape of the built environment (Bitner, 1992), including the decor and layout, air quality, and the ambient conditions. This three-component service-quality-unified model suggests that failure to perform well in any of the three aspects in the model might affect customer experiences and their perceptions of the firm’s service quality. Because of this, apart from maintaining quality service delivery and the core product, firms should also pay attention to the firm’s physical elements. Some scholars argue that these tangible features of a service environment give customers tangible cues about the quality of services (Lin, 2004) and also provide the firms with a means to position their service (Bitner, 1992; Wong and Fong, 2012; Zeithaml et al., 2006).
The role of physical environment on the perceived service quality in casinos
In the casino setting, associations are found between customer satisfaction, their perceived service quality of casinos, and the casinos’ service environment and design. Several scholars reported a clear and direct linkage between casino atmospheres (e.g. theme and decor) and customer satisfaction (Johnson et al., 2004; Wong and Fong, 2010; Yi and Busser, 2008). Wakefield and Blodgett (1996) found that the general attractiveness of the environment, particularly in terms of wall and floor treatments, affected the servicescape satisfaction levels of slot patrons. Lucas (2003) reported that such servicescape elements as casino navigation, interior decor, cleanliness, seating comfort, and ambient conditions had significant effects on slot patron satisfaction. He further stated that security was an important issue in casino environments. It can be achieved, for example, through modifying the slot cabinetry and locating the cage in an open area inside a casino.
Mayer and Johnson (2003) also reported that inviting elements such as theme, decor, floor layout, noise level, and ceiling height could maximize customer satisfaction and business performance in casinos. In particular, customers rated the design of the floor layout and themes as crucial to the overall gaming experience. Macomber (1998) found that sight lines (or visual paths) and signs could help slot patrons to orient themselves in an unfamiliar casino setting, thus enhancing their satisfaction. Others present a strong link between casino physical design (e.g. ambient conditions and decor) and patrons’ behaviors such as pleasure, gambling intention, and play duration (Finlay et al., 2006, 2010; Noseworthy and Finlay, 2009). For instance, Finlay et al. (2006) discovered that casino design with more natural elements and higher ceilings yields higher ratings of pleasure and restoration (relief from environmental stress) than casinos without these elements.
The important role played by design in a casino is also supported and emphasized by Friedman (2000), who states that “interior design is the reason some casinos always do well while others always struggle.” This is because “players revealed their preferences by the types of interior settings where they chose to gamble and not to gamble” (Friedman, 2000: 4). Therefore “a casino’s player counts increase or decrease only when its interior’s effectiveness is enhanced or reduced” (Friedman, 2000: 5) and a more appealing and pleasant interior setting will also lead customers to stay and play longer as well as creating repeat visits (Friedman, 2000).
Friedman (2000) argued that interior design was the second most important factor influencing casino player count, just behind location factor, and superseded other factors such as marketing, number of hotel rooms, management, and operation. First, he argued that location was the single most important factor influencing player counts because it determined the size and demographic composition of the available marketplace. Location could limit a casino’s potential as “the more distant a casino is than its competitor from the primary market, the less impact a stronger interior design will have on overcoming this disadvantage” (Friedman, 2000: 607). A casino with good interior design, however, superseded marketing. He compared casinos featuring similar marketing programs in Las Vegas and found that the one with the distinctly more appealing interior design always had many more players.
Casino design was regarded as more important than number of rooms because “it determines what percentage of in-house room guests choose to gamble on premise, since they can play at many nearby casinos” (Friedman, 2000: 610). According to Friedman (2000), improving the gambling casino ambiance through design could attract those non-in-house room guests to play at the casino, especially tourists who like to move from casino to casino.
Finally, Friedman (2000) observed that some casinos that enjoyed monopolies in large population centers were not so profitable mainly due to poor design. He gave examples of the Grand Casinos (Tunica) in two different locations and market structures. The Grand Casino in Tunica had the best location and was the closest casino to the primary Memphis market; yet, its business was disappointing mainly because of its poor casino interior design. The casino could not attract a mass market but only hard-core gamblers. However, the same casino in the Gulf Coast with many competitor nearby had maintained better business than its competitors because of its strong interiors.
Importance of the physical environment and design to Chinese gamblers
In a study by Wan (2011), who conducted face-to-face interviews with 402 players to ask what attributes were considered important when choosing a casino to visit, Chinese gamblers value most “free shuttle buses offered by casinos” followed by “attractive casino design.” Wan (2011) argued that as Macao’s transportation network was not well-developed, free shuttle bus services bringing customers from the two border gates and the ferry station played a crucial role in taking gamblers to the casinos. Also, many Chinese gamblers were also attracted by the glamorous architecture and design of a casino due to the Chinese “face” culture, which they felt made it more honorable to visit a casino that was glamorous and grand.
Wong and Fong (2010) explored the roles of game service, service environment, and service delivery on customer satisfaction and loyalty in Macao’s casino patrons. The results revealed that both the service environment and the service delivery were significant predictors of customer satisfaction. The qualitative interview of some Chinese customers in the study revealed that some felt bored with casinos that never change their design and settings. Some felt the smoky, crowded, and noisy environments were unpleasant. Other respondents appreciated casinos that were spacious and were well designed and decorated.
Lam et al. (2011) examined the impacts of casino servicescape on the satisfaction, intention to revisit, and desire to stay of gamblers (mainly those Chinese gamblers) in Macao. They found that after controlling for betting outcomes and the overall gaming result, customers were more satisfied when they gambled in an attractive physical environment, which had an impact on their intention to revisit the same casinos. Specifically, the study reported five main results. First, good ambient conditions sent implicit cues to gaming customers that the casino was of a high quality. Second, well-arranged machinery and equipment allowed customers to browse the service area more easily. Also, when the spatial layout and functionality of the servicescape were well designed, customers could better navigate the service area and perceived having greater control over the environment, resulting in an increased level of affective satisfaction. Third, customers felt more comfortable sitting at gaming tables if the seating quality was good. Fourth, when the environment was well decorated with attractive artifacts, customers would be attracted to the service area and would be more willing to stay in the casino. Also, customers felt happier if signs and symbols were adequately provided so they had better information about the service area. Finally, a clean service environment influenced the cognitive satisfaction of the Chinese gamblers as it created a good impression of professional and high-quality services. Based on these findings, Lam et al. (2011) concluded that the application of Kranes’ casino design approach seemed to be more able to attract Chinese gamblers because these customers generally preferred casinos that were spacious, where seats were comfortable and organized, and navigation was clear enough to allow more control over the environment.
Gap of the research and aim of this study
The existing literature examines the relationships between general ambient conditions (e.g. lighting, seating, and layout) and gambler satisfaction (Johnson et al., 2004; Wong and Fong, 2010; Yi and Busser, 2008) and the effects of physical setting on gambling behaviors and moods (Finlay et al., 2006, 2010; Noseworthy and Finlay, 2009). Studies on the customers’ preferences for casino design are absent. Having an understanding of these customers’ preferences and tastes would help marketers to better produce a product that meets their needs. This study has three research questions: (1) “How important is the design of a casino for the Mainland Chinese gamblers in choosing a casino to visit?”; (2) “What are their preferences for the casino design?”; and (3) “What are the implications for casino operators, the government, and hospitality scholars?”
Before presenting the methodology and findings of this study, it is useful to first understand the two dominant casino design approaches around the world. They are the Kranes and Friedman approaches. These two approaches will provide a framework to evaluate the design approach that is preferred by the targeted respondents. The preferences of the Mainland Chinese gamblers for casino design may fall into one of these approaches, a combination of them, or neither of the two approaches.
Two main casino design approaches
Kranes’ design approach
Kranes’ (1995) design approach is commonly found in some contemporary casinos in Las Vegas including the Bellagio, Mirage, Mandalay Bay, Flamingo, Rio, Venetian, and Wynn resorts (Finlay et al., 2006). This design approach conceptualizes casinos as playgrounds, as places where the activity (playing) should be conducted in an environment that is inviting and energizing, stimulating curiosity and exploration. Kranes (1995) regards gambling as a leisure activity, and he believes that surviving casino hotels will be those which are pleasurable. In other words, casinos should make people feel comfortable, at home, not anxious, and secure. Therefore, Kranes proposes that casinos should have a clear vertical axis and use warm colors to project a secure and home-like feeling to customers. An environment with a lot of greenery, natural sunlight, and open spaces would also help customers to integrate with the natural scheme of things and make them feel they are not in a secret and dark place. Freedom is another key theme of Kranes’ casino design principle. Kranes (1995) suggests that people should be given the freedom to stroll and explore casinos. They should feel pleasure but not disoriented. To achieve this, the casino needs to be spacious enough with higher floor ceilings. Sufficient information (i.e. through signage and directories) about the service areas should also be given to customers.
Friedman design approach
Friedman’s (2000) casino design approach can be found in traditional Las Vegas casinos such as some of those in the downtown areas and the Strip including the Imperial Palace, the Riviera, and the Circus Circus (Friedman, 2000). His design approach stresses the importance of “functionality,” and he summarizes his perception in The Thirteen Winning Design Principles.
Friedman’s Thirteen Winning Design Principles is based on five underlying beliefs. Finlay et al. (2006: 44–45) summarized and described them as follows:
To never let the person in the space forget that the dedicated activity to be pursued in it is gambling.
To try hard not to “distract” those in the space with frills and decor.
To hope to disorient those in the space by creating dead-ended paths in the same way a maze does.
To presume that the creation of disorienting “mazes” will create an anxious energy within those occupying the space such that, out of that energy, those present will begin to occupy themselves with a “busy” activity: namely, gambling.
To presume that this anxious gambling will feed on itself and that the player will gamble more and more until (hopefully) the gambling resources are gone and the player is “spent” and, ultimately, leaves.
The above beliefs are further translated into several design principles and were summarized by Finlay et al. (2006: 6) in this way: “gambling equipment should be the dominant decorative feature in a casino, and décor should be used only to highlight and enhance the equipment layout; interior décor that is impressive, imposing, or memorable distracts from the gambling equipment; a maze layout of slot machines is better than long, wide, straight passageways and aisles because mazes produce secluded, intimate gambling areas; and low ceilings which leave little space between the tops of the gambling equipment and the ceiling create a sense of intimacy and a focus on gambling.”
Table 1 summarizes the two different design approaches by Kranes and Friedman. In short, while Kranes’ approach yields higher ratings on pleasure and restoration (relief from stress), Friedman’s approach leads to higher estimates of arousal, aiming for a higher player count. Successful casinos, for Kranes, enhance a playground mood, allowing customers to relax by being able to feely explore the casinos, like being at home, feeling a strong sense of security with oriented pathways, and being able to integrate with the natural settings. Successful casinos, according to Friedman, however, emphasize the gaming equipment as the dominant decorative feature. A maze layout, an enclosed area with low ceilings, is used to promote a focus on gambling.
Comparing the two casino design approaches by Kranes and Friedman.
Methodology
A qualitative research method was adopted because such an approach allows researchers to “discover the meanings that participants attach to their behavior, how they interpret situations, and what their perspectives are on particular issues” (Woods, 2006: 2). Qualitative methods are particularly useful for under-researched areas of investigation (Finn et al., 2000). Face-to-face interviews were conducted with 25 Mainland Chinese gamblers in April 2011 and in October 2012. Twenty-five respondents were interviewed and this number was considered sufficient because no new information was discovered on the study phenomenon (Patton, 2002). Purposive sampling was used to enhance the representation of the sample chosen. The researchers were stationed outside 10 large casinos and asked to invite target respondents, identified using convenience sampling, to participate in interviews. Participants had to fulfill four criteria: (1) be a tourist; (2) be a Chinese national in origin and with nationality from Mainland China; (3) be aged 21 years or older; and (4) have visited and gambled in more than three different casinos in Macao in the current trip and in the 12 months prior to the interview, to ensure that the respondents had some familiarity with casino settings and could tell what they liked. The interviews took place on the street, with the survey responses completed by the interviewers, who read the questions out to the participants. No incentives were given to the respondents.
Face-to-face interviews with the Chinese customers were conducted. Three gaming management students studying at the University of Macau who were fluent in both Cantonese and Mandarin were recruited to conduct the interviews and provided with in-class training and on-site demonstration and supervision. The target respondents were approached by the researchers to invite their participation and were told of the aim of the study. Those who fulfilled the eligible criteria of this study by passing all the screening questions were invited to stand in a corner outside of the casino to proceed with a 15-minute interview. A total of 108 visitors were approached to participate in the study. A number of these potential respondents were approached while they were waiting for their friends/family members or for the shuttle buses/coaches outside the casinos. In all, 71 fulfilled the study’s eligible criteria and 25 agreed to participate, yielding a response rate of about 35.2%. This response rate is higher than in other research on Chinese gamblers (e.g. 29.53% and 16% in the studies by Liu and Wan (2011) and Wan (2011), respectively). This is perhaps due to the fact that this research uses a qualitative research approach and the respondents feel easy and comfortable to chat with the researchers through several open-ended questions instead of filling out a two- to three-page structured questionnaire. Another reason might be that most of them are not hard-core gamblers (as shown in Table 2, 48% of the respondents planned to spend between MOP$100 and MOP$1000 (or US$12.5–US$125) in their current trip); they seem not in a rush to gamble and show a willingness to participate in an interview.
Demographic profile of the respondents.
Note: Macanese pataca (MOP$) 8 = US$1.
Besides asking the general demographic characteristics of the respondents, such as their age, gender, education level, job, income, marital status, and budgets for gambling on their current trip, respondents were asked the following three preset, open-ended questions:
How important is the design of a casino for you in choosing a casino to visit?
Are you satisfied with the casino design in Macao in general?
What kinds of casino design appear interesting/not interesting to you and make you feel interest/no interest to explore the casino?
After asking the first question, the follow-up questions were asked based on the interviewee’s response, such as, “Why do you say that?” of “Could you explain further what you meant by …?” or “Could you give some examples of what you have just said?” The interviewer asked the second question to the respondents when the respondents had nothing else to add or say to the first question. Again, the respondents were probed with follow-up questions until the respondents had nothing else to say about the second issue. At that stage, the interviewer thanked the respondent and ended the interview. The respondents were encouraged to narrate incidents to support their opinions. Detailed notes were taken during the interviews, and the conversations were taped if the respondents gave their permission. All of the interviews were later transcribed verbatim and translated into English.
In this study, content analysis was employed for contextualizing the connections between categories and themes. Content analysis is considered an appropriate research technique for making replicable and valid inferences from texts to the contexts of their use, and it “provides new insights, increases a researcher’s ability of understanding particular phenomena or informs practical actions. This research technique enables the researcher to include large amounts of textual information and systematically identify its properties by detecting the more important structures of its communication content” (Mak et al., 2010: 209). Themes were identified and coded. The coding procedures were adapted from techniques suggested by Strauss (1987). The first stage is open coding. The verbatim transcripts of the interviews were read carefully line by line numerous times to identify potential categories of important themes and codes. The intention was not to calculate the frequency of occurrence of a theme, rather to list and classify the emerging themes. Items were classified based on the understanding of its content in the circumstantial context. In cases where a new item was related to an existing dimension, it was then subclassified under the existing dimension. If it was found to be entirely unrelated to the existing dimension, then this item was labeled as a new dimension. The data were categorized based on commonalities and differences, across emerging themes (Ghauri and Gronghaug, 2002). It was then checked and compared with the general codes to identify any potential for differentiation or merger. Axial coding was then used to integrate the codes on the basis of the axes of the central categories. The aim of which was to check the relationships between codes, revisit the data, and reorganize the previous codes when necessary. Finally, selective coding was used to identify the core categories. Microsoft Excel software was employed for the textual analysis primarily because it is user-friendly and allows the insertion of categories and themes into existing spreadsheets as well as alphabetic sorting.
Findings
Demographic profile of the respondents
Table 2 presents the demographic profile of the respondents. Among the 25 respondents, 13 (52%) were male and 12 (48%) were female. The majority of them were between 31 and 40 years (32%) and married with children (48%). Also, most of them had completed vocational/technical school (36%) and worked as sales or service personnel (28%). About 64% of the respondents were from Guangdong and had planned to spend between MOP$100 and MOP$1000 (or US$12.5–US$125) in gambling for their current trip.
The importance of casino design for choosing a casino to visit
Respondents were asked, “How important is the design of a casino for you in choosing a casino to visit?” Of the 25 respondents, 10 of them indicated “very important” and 12 expressed “important.” Such high ratings of casino design by the respondents echo the findings of Wan’s (2011) study. Most respondents were attracted by the size and theme of a casino. Typical quotes were: “I am very much attracted by the huge size of some casinos such as X and U casinos. They are so impressive and look like castles”; “Casinos which are large in size and have the flashing neon lights are very attractive, especially at night-time”; and “Some casinos have very interesting themes that position them so well. Their themes attract us to go inside to take a look and put down some money on the gaming tables.”
Satisfaction with Macau’s casino design
A majority of the respondents were satisfied with the casino design of Macao’s casinos (24 respondents or 96%). Of them, 15 respondents (or 62.5%) were very satisfied and nine (or 37.5%) were satisfied. Most indicated that they were satisfied and very satisfied with Macau casinos because they are “huge,” “grand,” “beautiful,” “awesome,” “we cannot find them in our cities,” and “I feel like I’m in Vegas.”
The preferred casino design styles
The respondents were further asked about the kinds of casino design that appeal to them as interesting/not interesting and would encourage/discourage their interest in visiting and exploring the casinos. A total of 30 preferences, which were further grouped into 11 categories, were identified and are summarized in Table 3. The order reported below is based on the frequency of the preferences that were mentioned by the respondents.
Mainland Chinese gamblers’ preferred attributes of casino design.
Spaciousness and openness
All the respondents preferred a spacious and open casino design with long and wide pathways, because, some respondents said: “It gives less pressure”; “so that I could see things far away. In this way I feel more secure and certain about the things in front of me.” A spacious casino also gives customers an impression of less crowdedness and more comfort. A male respondent said, “The X casino is spacious and not so crowded as compared to Y casino which is like a market.” A number of the respondents indicated a strong preference for a large hotel casino’s lobby. A gentleman said, “A lobby is the first contact point between the firm and the customer. It has to look grand, spacious with a higher ceiling. Some of my friends will leave the casino if its lobby does not look good, then I will follow them.” Other respondents also said that a spacious lobby “allows me to rest there comfortably for a few minutes after gambling,” and “I can rest my mind for a while waiting for my friends.” Besides, a high ceiling was preferred to a low ceiling because “it looks grand”; “it is less compact and puts less pressure on me to focus on gambling without much room to think of other things.”
Furthermore, seven respondents (28%) expressed that gaming equipment should not be placed too close together. A male respondent noted, “Because the gaming tables and slot machines are so near, I was very much disturbed by some customers who scream behind me after winning some money from the slots.” Another male respondent also said, “Some casinos have narrow passageways and aisles and gambling equipment that is crammed tightly together; this only creates compactness and congestion and will drive some customers away.” On the contrary, too much vacant space and too few games and activities in a gaming hall were regarded as “boring,” causing it to “lack the atmosphere to play,” as some respondents expressed.
Architectural style
A majority (23 respondents or 92%) of the respondents expressed that the exterior architectural style and design of a casino was an important attribute attracting their attention and interest to visit a casino. First, respondents generally preferred casinos that are huge and grand. A respondent from Mainland China said, “We can seldom find such a huge property in our city. They [casinos] look huge and grand.” Another gentleman said, “The casinos in Macao look huge, attractive, and stunning. There must be many games and activities inside.” Two male respondents expressed that they preferred a casino that was huge and occupied several lots on a strip because he felt “more superior” and “having more face” when visiting this casino than a small one. This response illustrates how the cultural factor could affect customers’ preferences for the design of a casino.
Some respondents preferred the casinos that were tall. The reasons were: “I can see them even if they are far away”; “they give me an impression that they are powerful and are the best casinos in town”; and “they have grouped activities in each floor, so is easier for us to find the floor that we want to visit without wasting a lot of time.”
Apart from the size of the casinos, Chinese customers also cared about the shape of a casino. Some of them (11 of the 25 respondents or 44%) preferred a symmetric and rectangular shape to an asymmetrical and irregular one. Asymmetrical and irregular shapes were perceived by some Chinese as strange, rare, and ugly. As one male respondent from Mainland China said, “Some irregular-shaped casinos like the A casino look like an oversized egg that is decorated with sharp edges and leaves, which looks very ugly and rare. I don’t understand the point of having this design style.” The shape of a casino could affect a gambler’s perception of his/her ability to have control over the casino and his/her preferences. A gentleman also said, “I feel more secure and more confident to win money from a casino that does not have [a] very strange shape.” Another said, “I feel that I have more control over the casino instead of it controlling me if the casino is designed in a regular and standard shape.”
Two ladies also commented that the sharp leaves of the casino were threatening and had bad feng shui to customers because they looked like knives going to kill every gambler. According to the designer of the casino during an interview, the inspiration of having such a design came from the feathered headdress of Brazilian carnival dancers, reflecting the exoticism and Portuguese influence shared by Macao and South America, and the “leaves” sprouting from the hotel tower evoked petals of a blossoming lotus flower, Macao SAR’s official emblem (Chung, 2009). It seemed that the original design concept was not understood and appreciated by many Chinese customers, indicating the need for the casino to promote and communicate more about their product.
Besides, a lot of the respondents (17 of the 25 respondents or 68%) expressed an interest and preference for the Western-style casino design, indicating that such a design style “stimulates their curiosity to explore the casino.” A Western casino design style was new and fresh to many Chinese customers, something they rarely find in their own cities. A female respondent from Mainland China also noted, “I wandered around the B casino for almost three hours. I did not feel tired but felt excited to explore more new things that I cannot see in Jiangsu.” Some respondents also pointed out that they were particularly attracted by the European architectural style of casino design which added some flavors of Portuguese culture. One gentleman said, “I want to learn more about the Portuguese culture. Macao has strong roots in this culture. Its casinos should reflect more of the country’s characteristics”; and another said, “It’s a bit disappointing not being able to see much Portuguese decorations and design of the casinos. This could be a good selling point to the local casinos to make them different from those in Vegas and Singapore.”
Exterior design
Chinese customers were in general attracted by casinos that had colorful and eye-catching exterior decorations, as expressed by 84% (21 of 25) of the respondents. A lady said, “It is totally unacceptable if a building has no design at all.” Another male respondent said casinos without any decorations looked like “a tomb or an office.” A lady also noted she preferred refined decorations such as the marble, sculptures, and crystals that some casinos used and she would even get closer to the materials to feel and touch them. Attractive exterior building decorations for many customers mainly referred to “colorful neon lights,” “shiny external walls,” and “external walls decorated with figures, pictures, or some special 3D effects.” Exterior landscape design, in particular, water foundations and water shows, was appreciated by many. A lady said, “Water represents flowing in of money in the Chinese culture, so more water decorations means more money coming.” Another male respondent added, “The waterfalls in front of the B casino really impressed me. They have regular water shows performed every day, with all the lightings and music…very refreshing and energetic.” A few ladies also commented that water features outside a casino could reduce the hot temperature during the summer period. Finally, the younger generation (mostly those between 21 and 30 years) preferred a more contemporary and trendy design. A 25-year-old male respondent expressed his preference for the City Center project in Las Vegas for its simplistic and modern design that was different from other casinos.
Interior decor
Chinese customers also preferred casinos that paid attention to their interior decorations (18 respondents or 72%). A casino without interior decoration was considered to be unacceptable. A female customer said, “The first feeling that I got about the E casino is that I just entered a house with some gaming tables and slots and nothing else. This casino looks more like a gambling den than a modern casino. The square size of the room with some gambling tables and slots put in the middle of the room has made the casino floor very ugly. You can’t find other features or decorations inside the casino. Maybe they have them but I can’t find them.” A gentleman suggested that casinos in Macao should learn from those in Las Vegas by incorporating wider varieties of decorations and design such as mirrored ceilings, paintings, statuettes, and lamps to create a modern but cozy atmosphere. Some suggested that Chinese/Asian arts and artifacts could be exhibited inside the casinos to show appreciation of Chinese history and culture. Three females expressed the need for casinos to have at least one focal point inside (e.g. a large sculpture or plant in the lobby) as a place for “people to meet and gather,” “photo-taking,” and “finding directions.”
Theme
Casinos that appear interesting to Chinese customers also included those that have a theme, as expressed by 17 (68%) respondents. Some pointed out that few casinos in Macao had a theme. Therefore, “the few that had unique themes were very popular among the Chinese customers and were considered ‘must-visit casino[s],’” according to a lady from Mainland China. Most (66%) expressed the feeling that themes relating to “water” and a “Renaissance Venice-theme” attracted them the most. Surprisingly, no respondent indicated any preferences for an Asian or Chinese theme. Typical responses were: “We have seen many Chinese-themed structures and buildings in our own city; we come here to experience the Las Vegas casino culture”; “we come here to visit the V casino to experience what a great Las Vegas casino looks like. We cannot afford to travel to Las Vegas to see it but we can find it in Macao.”
Signage
To orient customers, clear signage is necessary. Of the 25 respondents, 17 (or 68%) noted that there were not enough signs and directories inside the casinos and that the signage was unclear. Two male respondents said, “I often get lost because signs are lacking,” “I could only find a sign after walking 8–10 minutes and by that time it was too late because I was already heading in an opposite direction”; and “some signs are very small, except in the X casino, their signs are big enough and eye-catching.” Customers often encountered difficulties in finding the entrance to a casino because of the lack of signage or a directory. A male respondent noted, “I have spent more than 20 minutes wandering around the whole casino hotel to look for the casino entrance. It’s a waste of time.” Another gentleman added, “Sufficient and clear signage could help a customer to find their way inside a casino without the need to ask assistance from the staff, and in that way it could reduce the workload of the staff.”
Floor layout
Mainland Chinese customers preferred an ordered layout instead of a maze-like layout, as expressed by 10 respondents (40%). Common responses were that clear paths and access helped them to: “orient themselves in a large area without getting lost”; “find the places they wanted to go within the casinos more conveniently and faster”; and “be more certain about where they can go.” Customers preferred table games and slot machines that were grouped into separate sections because: “I could find my preferred games more easily”; “I know my orientations”; “I feel more secure and have more control of everything inside a casino”; and “it’s easier to identify areas of excitement.” Another respondent gave a good example of what is a good and organized layout. She said, “B casino has divided its gaming floor into different zones which are exactly the same size. With the symmetrical division, I feel that I know where I am in the gaming hall and feel more secure.”
In addition, a few younger respondents (three) expressed that they did not like to pass through the casinos to get to the restaurants and their room, because their interests are not in gambling but other activities such as shopping and dining within the casino resorts.
Color
Eight (32%) respondents commented about the use of color in casinos. Most of these respondents (six or 75%) had a strong preference for a warm color such as red, gold, and yellow because these made them feel more excited and energetic. On the contrary, cold colors such as blue, gray, and black were considered boring, unexciting, less interactive, and sleepy for many Chinese customers. There is the exception of two young adults who preferred gray and blue because these colors look more trendy and modern.
Air temperature and quality
Eight respondents (32%) complained that the air quality of many casinos in Macao was poor. Some expressed their preference to have an outdoor resting area near the gaming halls. A male respondent said, “When I am tired after gambling for a long time, I can rest outdoors for a while to enjoy a cup of coffee, and then go back to the game again.” Another male respondent added that an outdoor resting area for smokers would reduce the intensity of smoke inside the gaming floor. The strong preferences for outdoor resting areas/viewing desks might be due to this group of customers having more opportunity to be exposed to the natural environment in their cities than other groups. Some respondents liked to escape from the second-hand smoke from cigarettes. The permission of smoking was the major reason.
Some respondents complained that air-conditioning of some casinos was too cold. Some were concerned about the odor used in the casinos and considered that they were “too strong,” “can even be smelled from the outside,” and “smell strange like cheap soap.” In general, floral and fruit scents were the most popular choices among these respondents.
Lighting
Six (24%) of the 25 respondents mentioned the lighting inside casinos. Four of them preferred casinos that used soft lighting but said such lighting should be bright enough for reading cards and dice. A male respondent from Mainland China noted, “My eyes will not easily get tired from watching cards in an hour under soft lighting.” However, lighting that is too soft would “make people feel sleepy and dizzy,” according to one lady. Besides, three of them preferred more colorful and flashing lighting for the exterior of casinos as they appear to be more attractive and inviting. However, static lighting inside gaming halls was preferred because the customers did not want to be distracted when playing the games.
Greenery/natural landscape
Five (24%) respondents believed that casinos with some plants, flowers, and a natural/artificial landscape were more attractive than those with fewer plants and greenery. A male respondent said, “Many casinos in Macao look like concrete buildings. They are grand, using expensive decorations and materials. However, I think they could use more natural and cheaper ways to decorate their casinos such as flower[s] and plants… more green, environmental, and refreshing.” A female respondent also added that plants and flowers on the gaming floor could help relieve the stress of casino workers and players (which would be a good responsible gambling practice) and so should be promoted. Another female respondent praised the Bellagio and MGM Mirage casino resorts in Las Vegas for their natural landscape and plants and believed that Macao could learn from these casinos.
Discussion, contribution, and implication
Summary
This exploratory study has examined the preferences of Mainland Chinese customers regarding casino design. The results show that a majority of the respondents were satisfied (96%) with Macao’s casino design, mainly with respect to their large size and grandeur, which customers rarely find in their own cities. A majority of the respondents (88%) expressed that the design of a casino (especially the exterior design and architectural style) is an important element for choosing a casino to visit, echoing the findings of Wan’s (2011) study. The result is also consistent with previous studies regarding the important roles played by the physical environment and settings on customer satisfaction and behaviors and perceived service quality (Johnson et al., 2004; Mayer and Johnson, 2003; Wong and Fong, 2010; Yi and Busser, 2008). Thus, casino operators should pay enough attention and effort to the physical settings and design because it could affect a customer’s total service experience.
Several design preferences are also identified in this study. The results show that the application of Kranes’ casino design approach seemed to be more able to attract Mainland Chinese gamblers than Friedman’s design approach, a result consistent with the findings reported in the study of Lam et al. (2011). Chinese customers generally preferred casinos that are spacious, with a higher ceiling, organized seats, and navigation clear enough to allow for more control over the environment. The customers also prefer casinos with a lot of greenery, natural sunlight, and warm colors, as they feel more comfortable, pleasant, and secure.
The Mainland Chinese gamblers whom we interviewed have some other preferences for casino design that do not fall into Kranes’ (1995) and Friedman’s (2000) design principles. For instance, customers indicated their preferences for casinos that have a Western design style with regard to theme, that are larger in size, and are regular and symmetrical in shape. A majority prefer refined, sophisticated, and esthetic construction that uses soft and static lighting inside the gaming floor but flashing lighting for the exterior. Some like to see that there are smoking and non-smoking gaming areas and an outdoor resting area near the gaming hall for them to breathe fresh air and take a rest when playing casino games.
Contributions and implications
Several contributions and implications could be derived from this study. First, this study contributes to the literature on casino design by understanding the preferences of the Mainland Chinese gamblers for casino design, an important source of customers to most casinos. The casino design dimensions that resulted from this study provide a good basis for future study conducting qualitative research. Second, the results of this study echo the findings of the previous studies that the physical settings and environment of a casino play an important role in customer satisfaction and behaviors (Johnson et al., 2004; Mayer and Johnson, 2003; Wong and Fong, 2010; Yi and Busser, 2008). More research on how the design of casinos can arouse interest in staying longer and desire for repeat visiting, therefore, will be valuable and necessary. Third, the results of this study point to the need to expand the scope of casino design. The two dominant casino design approaches, by Kranes and Friedman, focus on several design aspects such as spaciousness and openness, interior decor, signage, floor layout, color, and greenery/natural landscape. This study, however, discovered that size, shape, the exterior architectural design and style, the external landscape of casinos, and the internal air quality and resting areas have to be incorporated into the design of any casinos because these elements are regarded as important to the customers.
Finally, this study provides ideas for future research areas in casino design. An important research direction could be to examine how culture affects casino design preferences. In this study, “saving face,” “feng shui,” and water elements are found to be important cultural factors for the Mainland Chinese in choosing to visit a larger casino. Also, several respondents have made comparisons between the casinos in Las Vegas and Macao. This illustrates that some customers have an expectation that they could experience the Las Vegas style of casinos in Macao. This expectation is not without any reasons. Since the liberalization of the casino license in 2001, giant American casinos such as Wynn Resort, Venetian, and Sands were all built and opened in Macao, and most of them are located in the “Cotai Strip,” similar to the “Las Vegas Strip” in Las Vegas. Those who have been to Las Vegas might be curious to see what these American casinos look like in Macao and to compare whether their experiences are the same in both cities. Those who have not been to the casinos in Las Vegas are interested in visiting them in Macao because it is more convenient and less costly. More research efforts are needed for a quantitative survey on a large sample size to explore whether this preference prevails amongst the majority of Mainland Chinese gamblers and what Western styles and attributes of casino design are generally preferred. Future research could examine the needs of each market segment in casino design (i.e. the younger generation is found to have stronger preferences for trendy and modern design than the other groups), since expectations, preferences, and cultures may differ. As the owner of Caesar’s Palace Hotel (Las Vegas), Mr Jay Sarno, said, “The needs of every kind of gambler are different, and the design must incorporate this as an important factor” (Walker, 2007: 1).
Several implications could be offered to the casino operators and the Macao government. First, large and eye-catching casinos are preferred by the Mainland Chinese gamblers, not only because large casinos appear more attractive to them, but also because they could provide a wider variety of games and activities. An integrated resort (IR) development model is actually widely adopted in Las Vegas, Singapore, and Macao. The IR concept is more than a casino. It is a one-stop entertainment center. There are other common attributes of IRs such as “over the top” architecture, having the largest and highest grade hotel accommodation and casinos in the world, Michelin-quality fine dining, and becoming the major players in the convention and meeting business (Eadington and Doyle, 2009: vii). The target market is not only gamblers, but also the leisure market that has little or no interest in gaming (Eadington and Doyle, 2009). With extensive amenities, the IR is believed to have the potential to bring higher revenue than purely gambling (Eadington and Doyle, 2009). In fact, the IR model is what most of the giant casinos are pursuing in Macao, and the Macao government gives much support to this development model because it helps to diversify the city’s gambling-centered business. To encourage the development of IRs, the government should reflect this development intention in their future extension of casino licenses and land approvals policies in the city, and perhaps give some incentives to casino operators to develop IRs.
With regard to the outlook of a casino, customers prefer it to be symmetrical and rectangular in shape, unless necessary, for example, to fit a particular theme purpose. This finding reminds casino operators to communicate their product design concepts to customers through various means such as media, the company’s website, and promotional leaflets.
Casinos should also pay attention to their interior design. The floor design and layout should give customers the opportunity to explore the casinos with pleasure and comfort, so they feel like they are at home, such as by providing adequate open spaces with a higher ceiling. It is especially true that the hotel and casino lobbies, which are usually the first service areas customers visit, should look spacious and open to stimulate customers’ interest to explore other areas of the casino. Signs and symbols must be adequately provided so that customers are better informed about the service area. On the gaming floor, sufficient space should be given to allow customers to pass through the passageways and aisles easily and to reduce the noise caused by the nearby tables/slots.
More efforts should also be paid to the theming, as it is considered important to most casino customers (Walker, 2007), including those from Mainland China, as reported in this study. This study finds that Mainland Chinese gamblers are attracted by the themes that are associated with water and Renaissance Venice. These preferences are made based mainly on what they have seen and experienced in Macao or Las Vegas. However, customers could get bored one day and find that the themes are no longer able to attract them anymore, especially in the case of repeat customers. It is necessary to conduct research on their preferred themes to attract the repeat customers and to gain competitiveness.
Also, attractiveness of casinos for the Mainland Chinese gamblers also includes the provision of greenery and plants, the use of soft and static lighting inside the casino and flashing neon lights for the exterior, a more pleasant odor, appropriate air temperature and quality, and warm colors. More investigations should be made into how these elements that appear attractive and interesting to the customers could be mixed and could at the same time function well within casinos.
Limitations of the study
There are several limitations of the present study. First, quantitative data were not collected. Second, the study did not identify whether the respondents were first-time visitors or repeat visitors to casinos, and in the VIP market or the mass market. Among gamblers, high rollers have very different views from curious punters. In addition, local residents should be included to allow comparisons of the preferred attributes between local residents and tourists. Even among the Chinese customers, the preferences and behaviors of those from Hong Kong, Mainland China, and Macao could be different (Liu and Wan, 2011; Zeng et al., 2012). Thus, it would be interesting and valuable to look at each market segment and examine the preferences of each in order to obtain more precise information for creating a product better suited to each group’s needs.
Footnotes
Funding
This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.
