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    Extremely Frequent Behavior in Consumer Research: Theory and Empirical Evidence for Chronic Casino Gambling

    Access Status
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    Authors
    Perfetto, Ralph
    Woodside, Arch
    Date
    2009
    Type
    Journal Article
    
    Metadata
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    Citation
    Perfetto, Ralph and Woodside, Arch G. 2009. Extremely Frequent Behavior in Consumer Research: Theory and Empirical Evidence for Chronic Casino Gambling. Journal of Gambling Studies. 25 (3): pp. 297-316.
    Source Title
    Journal of Gambling Studies
    DOI
    10.1007/s10899-009-9130-3
    ISSN
    1573-3602
    URI
    http://hdl.handle.net/20.500.11937/40084
    Collection
    • Curtin Research Publications
    Abstract

    The present study informs understanding of customer segmentation strategies by extending Twedt’s heavy-half propositions to include a segment of users that represent less than 2% of all households—consumers demonstrating extremely frequent behavior (EFB). Extremely frequent behavior (EFB) theory provides testable propositions relating to the observation that few (2%) consumers in many product and service categories constitute more than 25% of the frequency of product or service use. Using casino gambling as an example for testing EFB theory, an analysis of national survey data shows that extremely frequent casino gamblers do exist and that less than 2% of all casino gamblers are responsible for nearly 25% of all casino gambling usage. Approximately 14% of extremely frequent casino users have very low-household income, suggesting somewhat paradoxical consumption patterns (where do very low-income users find the money to gamble so frequently?). Understanding the differences light, heavy, and extreme users and non-users can help marketers and policymakers identify and exploit “blue ocean” opportunities (Kim and Mauborgne, Blue ocean strategy, Harvard Business School Press, Boston, 2005), for example, creating effective strategies to convert extreme users into non-users or non-users into new users.

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