finished project
TRANSCRIPT
ContentsList of Figures.........................................................................................................................................3
List of Tables..........................................................................................................................................3
Abstract.................................................................................................................................................4
1.0 Introduction.....................................................................................................................................5
1.1 Research Aims and Objectives.....................................................................................................6
2.0 Literature Review............................................................................................................................8
2.1 Knowing Your Customer - Consumer Trends...............................................................................8
2.2 Consumer Behaviour...................................................................................................................8
2.3 Consumer Decision Making Process............................................................................................9
2.4 The Online Consumer................................................................................................................12
2.5 Online Customer Retention and Loyalty....................................................................................14
2.6 Social Media Marketing.............................................................................................................15
3.0 Methodology.................................................................................................................................23
3.1 Epistemology and Interpretivism...............................................................................................23
3.2 Qualitative and Mixed Method's...............................................................................................23
3.3 Data Collection..........................................................................................................................24
3.4 Questionnaires...........................................................................................................................24
3.5 Interviews..................................................................................................................................25
3.6 Focus Groups.............................................................................................................................25
3.7 Validity and Reliability...............................................................................................................26
3.8 Limitations.................................................................................................................................26
3.9 Ethical Considerations...............................................................................................................27
4.0 Results and Discussion...................................................................................................................28
4.1 Questionnaire Respondents......................................................................................................28
4.2 Age Breakdown of Respondents................................................................................................28
4.3 Betting Site Consumers use most..............................................................................................29
4.4 Customer Loyalty and Retention...............................................................................................29
4.5 Betting Site used first.................................................................................................................30
4.6 Reasons for Choosing First Site..................................................................................................30
4.7 Brand Recognition.....................................................................................................................31
4.8 Sign up Offer..............................................................................................................................32
4.9 Reasons for Using Betting Site now...........................................................................................34
4.10 Best Odds and Betting Markets...............................................................................................34
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4.11 Site Navigation.........................................................................................................................36
4.12 Marketing Communication Methods.......................................................................................36
4.13 TV Adverts...............................................................................................................................37
4.14 Social Media............................................................................................................................39
5.0 Main Conclusions...........................................................................................................................42
5.1 Research Limitations and Strengths...........................................................................................45
5.2 Recommendations for Future Research....................................................................................45
6.0 Bibliography...................................................................................................................................46
7.0 Appendices....................................................................................................................................51
7.1 Appendix 1: Progress Record Form............................................................................................51
Stage 1: Progress Record - to be signed by supervisor on or before the 8th teaching week of semester 2 (or 4 weeks from the handing in date)...............................................................51
Stage 2: Declaration regarding origin, provenance and content of project...........................51
Student Declaration..................................................................................................................51
Supervisor's Declaration..........................................................................................................51
Stage 3: Self Declaration of electronic submission to TurnitinUK..........................................52
Student Declaration..................................................................................................................52
7.2 Appendix 2: Best Odds and Markets use bet365 or Betfair.......................................................53
7.3 Appendix 3: Easiest Site to use..................................................................................................54
7.4 Appendix 4: Does Site Navigation Affect Choice........................................................................54
7.5 Appendix 5: £10 + Weekly Spend Current Site..........................................................................55
7.6 Appendix 6: Betting Sites Registered With................................................................................55
7.7 Appendix 7: Under £2 Weekly Reason for using Site now.........................................................55
7.8 Appendix 8: Follow Betting on Social Media..............................................................................56
7.9 Appendix 9: Best way to find out about Offers..........................................................................56
7.10 Appendix 10: Most Effective Marketing Method.....................................................................56
7.11 Appendix 11: Do Betting Adverts Motivate you to Bet?.........................................................57
7.12 Appendix 12: Paddy Power Followers who use Site................................................................57
7.13 Appendix 13: Research Questionnaire.....................................................................................58
7.14 Appendix 14: Focus Group Transcript......................................................................................66
7.15 Appendix 15: Daniel Pyle E-mail..............................................................................................84
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List of Figures
Figure 1 - Consumer Decision Making Process
Figure 2 - Amount of Active Social Media Users
Figure 3 - Most Commonly Used Social Media Marketing Tools
Figure 4 - Ladbrokes Social Media
Figure 5 - Sarnoff's Law and Reed's Law
Figure 6 - Positive Customer Reaction on Social Media
Figure 7 - Negative Customer Reaction on Social Media
Figure 8 - Online Betting Market Share
Figure 9 - Questionnaire Respondents age Breakdown
Figure 10 - Betting Site Consumers use Most Commonly Now
Figure 11 - What Betting Site did Consumers First use?
Figure 12 - Reason for Choosing Initial Betting Site
Figure 13 - Name a Betting Company
Figure 14 - Reasons why Respondents use a Betting Site now
Figure 15 - How Amount Staked Determines use of their Sites
Figure 16 - Most Recognised TV Betting Advert
Figure 17 - Do you follow Betting Sites on Social Media?
Figure 18 - Betting Sites Followed on Social Media
List of TablesTable 1 - Current Sign up Offers
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AbstractPurpose
The poor online performance of retail heavyweight, Ladbrokes and the relatively unbeknown
determinants into the behaviour of online betting consumers warranted the basis of this
particular research.
Research Question
Success factors to improve the online performance of Ladbrokes - An investigation to
determine the factors that influence consumer behaviour within online sports betting.
Research Aims
Examine how different communication methods impact on the decision making
process of online bettors.
Examine whether customer loyalty exists within online betting.
Examine the factors that influence customer loyalty within online betting.
Conduct a competitor analysis to contextualise the current strategies employed by
betting sites in relation to the research results.
Research Design
A mixed method approach was deemed the most appropriate format to best investigate the outlined aims of the research. In order to extract the relevant information, the following data collection methods were selected for use; questionnaires, a focus group and e-mail contact with an industry representative.
Findings
Results found there to be a number of influencing factors which online betting consumers considered to be of importance when choosing their preferred site of use. Communicative methods were also shown to be effective in gaining and retaining customers.
Limitations and Future Research
A larger sample group would help in providing greater reliability to the results, though for future research a similar design structure would be advised. Greater knowledge of current Ladbrokes strategies and consumer knowledge would have been achieved if contact with a representative was possible.
Practical Implications
Ladbrokes can look to enforce suggested measures into their strategy in order to comply with the expectations of the consumer.
Research Originality
Previous research has not investigated the driving factors behind consumer behaviour in online gambling.
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1.0 IntroductionRationale for Research
The development of the internet has opened up countless opportunities for both businesses
and consumers alike (Yen and Ng, 2003). Its increased prevalence within society now
makes it an integral part of everyday life, allowing easy access to different sites and
information from virtually any location around the world. Currently, there are approximately
3.1 billion internet users worldwide, equating to around 41% of the world’s population
(Internet Live Stats, 2015). It therefore comes as no surprise that the impact of the online
phenomenon has enforced serious changes to the traditional operations of many commercial
industries, as well as a perceived adjustment in the way that consumers react to making
purchasing decisions (Hausman et al., 2014).
The expansion of online betting has created a whole new way in which consumers can bet
on sport. Technological advancements have paved the way for improved modes of
accessibility, providing customers with further means to exploit the more in depth range of
betting markets and options that they now have available at their expense (Humphrey's,
2011). As a result of this, the increasing popularity has led to the continuing migration of
sports bettors over to the online market, leading Walmsley (2014) to predict the imminent
takeover of online from betting shops, as the top contributor of consumer spending in the UK
sports betting market. Though consumers have relished the opportunity, the online transition
has been more problematic for businesses, with Jolley, Mizerski and Olaru (2006) paying
special exception to the challenged faced by businesses in adapting to the altering
behaviour of their consumers.
With Ladbrokes boasting over 2,700 retail shops (Ladbrokes, 2014), very few could have
envisaged the difficulties they have encountered in making the switch to online betting.
Ladbrokes' current online market share ranks them in sixth position, a disparagingly far cry
from their clear second place within the retail alternative (Walmsley, 2014). However, the
noticeable difference between the two markets is the closer proximity of which the
companies are grouped together online. With a seemingly larger group of betting sites all
vying for consumers, this leads Thomas (2011) to point out, that within such markets, there
is a strong emphasis on the need for businesses to highlight to the consumer what it is that
differentiates them from their rivals.
The two mediums of consumer behaviour and betting have both received extensive
academic commentary since the inception of e-commerce. In despite of this, little research
has looked to make the link between generic consumer behaviour and online betting; with
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much of the current literature comprising of the two thus far concentrating predominantly on
problem gambling and the increased social ramifications consumers' face, as a result of the
betting industry emigrating online.
Upon knowledge of this project, the subject of betting was an area which had particular
appeal to the researcher. Having identified the struggle faced by Ladbrokes online, sparked
an immediate interest to identify the problem. Therefore, these reasons combined with the
apparent gap in the current literature, warranted the investigation into what it is that
influences consumers to act as they do when participating in online betting.
1.1 Research Aims and Objectives
Research Question
After consideration, the following question was devised as the main basis of the research;
Success factors to improve the online performance of Ladbrokes - An investigation to
determine the factors that influence consumer behaviour within online sports betting.
Research Aims
To assist in answering the question, the research will look to closely inspect these
accompanying aims;
Examine how different communication methods impact on the decision making
process of online bettors.
Examine whether customer loyalty exists within online betting.
Examine the factors that influence customer loyalty within online betting.
Conduct a competitor analysis to contextualise the current strategies employed by
betting sites in relation to the research results.
With the relatively scarce volume of research currently surrounding this topic, the following
literature review will look to review the generic commentary regarding consumer behaviour
and the impact that e-commerce has on this. Therefore, it is also important to highlight the
relative concepts generally associated with consumer behaviour research. These include;
identification of consumer trends, consumer behaviour towards products and purchases, the
consumer decision making process and achieving customer retention and loyalty online.
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This will explain the entire process businesses must endure in order to create a better
understanding of their consumers and their needs. The discussion will look to gage how
companies are looking to communicate their message to consumers, explaining relevant
theories to improve effectiveness and subsequent success.
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2.0 Literature Review2.1 Knowing Your Customer - Consumer Trends
In today’s competitive industry, it is of great benefit to businesses to have the ability to obtain
information and an understanding of their consumers according to Zimmer et al. (2010). A
general definition of consumer trends is scarcely touched upon within existing academic
literature, though the importance of conducting consumer research is key to understanding
your consumers and creating a product or service which ‘offers the benefit that customers
seek’ (Rowley, 1997: 65). It alerts managers as to what is popular now and help them predict
how this may alter in the future. Such analysis can be used to gain an understanding of a
host of information beyond simply identifying who purchases certain goods or services.
Industry wide information and trends are often accessible but Hague, Hague and Morgan
(2013) explain how businesses have the ability to refine the information to their own existing
customer base through internal market research.
Acquisition of this knowledge can provide the basis for making ‘well-informed decisions’
according to Reynolds-Zayak (2004: 5), who further explain that this can help to personalise
accurate strategies to aid with the marketing and future development of their product or
service. However, failure to conduct a thorough, accurate assessment of the market can also
have its associated dangers according to Acevedo (2015), with businesses risking the
potential incurrence of lower sales and unsatisfied customers, leading subsequently to profit
losses and unsuccessful product campaigns. Furthermore, this task has become more
difficult over the years with Reynolds-Zayak (2004) explaining that managers now face the
challenge of synchronising their efforts to keep up with the rapidly changing nature and
growth of today’s industry.
After consumer trends have been identified and established, Mihic, Radjenovic and Supic
(2013) state how it is necessary for businesses to consider what influences the customer's
behaviour during the decision to purchase, placing emphasis on the thoughts and feelings
that occur before and after a decision.
2.2 Consumer Behaviour
Solomon, Russell-Bennett and Previte (2013: 3) define consumer behaviour as ‘the
processes involved when individuals and groups select, purchase, use or dispose of
products, services, ideas or experiences to satisfy customer needs and desires’. It depicts
the whole thought pattern and reasoning behind a customer’s purchase, with Lake (2009)
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simplifying that the bare bone results essentially reveal; what, where, when and why
consumers buy. Though the definitions alter slightly, the mainstay of the two interpretations
is the idea to satisfy customer needs according to Parsons and Maclaran (2009), with
businesses aiming to provide goods and services that give the consumer what they want.
The ability for businesses to identify and subsequently deliver a product or service based on
the identification of the aforementioned key traits and needs, amongst their own consumers,
is the essence of marketing according to Schiffman and Wisenblit (2015). Businesses exist
to satisfy needs; with Solomon et al. (2013) explaining that the only way to achieve the
desired satisfaction of the consumer is based on the marketer’s capacity to understand
these. With this in mind, it is important for businesses to appreciate that the process cannot
be taken lightly and deserves to be conducted thoroughly and professionally. Brassington
and Pettitt (2007: 140) state that ‘the better the research and analysis process is performed
the better position a business is in to make informed decisions to satisfy customer needs’.
Though, it is added that an organisation that is willing to implement marketing changes
without the background consultancy of their consumers, are ‘running a very high risk of
failure’.
Therefore Hawkins and Mothersbaugh (2010) summarises that, to avoid jeopardising
business performance, marketers require extensive information to be able to perform and
implement successful decisions, with the research and resultant gaining of increased
consumer knowledge having the ability to influence entire marketing plans. Lake (2009)
explains how this process is applicable to businesses of all sizes, with fierce competition for
customers rife within most industries today. Bradley (2003) concludes therefore, that if
businesses set a core outcome designed to create and effectively market a product or
service which is best suited to the needs of their customer base, then this can not only
motivate customer’s to purchase but help in gaining a competitive advantage over their
rivals.
2.3 Consumer Decision Making Process
Kotler and Armstrong (2010) label's the decision making process as a complex, ongoing
routine which begins long before and continues long after a purchase is made. Researchers
(Puccinelli et al, 2009; Kotler and Armstrong, 2010) have explained that the process is
conducted by a pre-planned set of internal goals, while throughout individualistic
psychological factors heavily influence the seeking of information and subsequent
judgements in pursuit of that goal. Thomas (2014) believes that the identification of finding
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out what the consumers are thinking and asking themselves before, during and after a
purchase makes a business's ability to market far more effective. Therein, businesses want
to know exactly what it is that determines a consumer’s purchase decision.
‘The predominant approach, explaining the fundamentals of consumer behaviour, describes
the consumer buying process as a learning, information-processing and decision-making
activity divided in several consequent steps’ (Constantinides, 2004: 111). Researchers have
concluded a five stage model explaining the thoughts and analysis which is defined as the
consumer decision making process (Constantinides, 2004; Blythe, 2005; Brassington and
Pettitt, 2007; Solomon, Cornell and Nizan, 2009; Kotler and Armstrong, 2010).
Figure 1 - Consumer Decision Making Process
(Solomon, Cornell and Nizan, 2009)
Problem Recognition
This is the initial stage of the process in which acknowledges the consumers need to make a
purchase. Friesner (2014) explains that the initial recognition stems from the consumer
missing something, wherein their current position doesn’t meet their current needs. Though
this is generally considered as pre-planned behaviour prior to purchase, Brassington and
Pettitt (2007) explain that there are such occasions, for instance passing by a product in a
supermarket and triggering the memory that it is needed, where this stage can occur
instantaneously.
Information Search
The information search stage is the follow on from the problem identification where the
consumer then seeks to find a suitable solution. Herein consumers will identify the kind of
purchase required to solve the problem and where and how this can be obtained. According
to Brassington and Petitt (2007), this involves utilising as many sources as possible in order
to gain the maximum knowledge and information about the options. Some information may
already be known to consumers through past purchases or word of mouth (Jeddi et al,
2013), leading Pradhan (2009: 123; cited by Dudovskiy, 2012) to state ‘the extent to which
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the consumer needs to search for information depends on his current information levels and
the perceived value of the additional information’. Thomas (2014) argues that this is one of
the most important stages as marketers must be effective in capturing the attention of the
proposed consumer in order to be considered for purchase. So with the consumer wanting to
know more, having an extensive, accessible range of information outlets via a number of
different marketing streams puts a product or service in the best possible position to be
recognised by the consumer (CIM, 2015).
Alternatives Evaluation
At this point consumers will have an idea of the potential options available to them and begin
with the process of evaluating which one is best suited to their purchase goals. In order to
sway the decision process in their favour, Dudovskiy (2012) believes that marketers must
look to implement their product differentiation, or the determinant that makes them different
from competitors, aspect within the elements of the marketing mix. This is due to consumers
having a consideration set explains Blythe (2005: 47), which is the ‘group of products which
would most closely meet the need’. Furthermore, Blythe (2005) adds that a typical example
of this would be the consumer having an idea of a price range that they are willing to spend,
maybe including a minimum cut off price as well as maximum if the perceived value and
quality of the desired product is of certain importance to them. Kotler and Armstrong (2010)
believe that marketers must study the way in which consumers most commonly address the
evaluative stage. Through knowing the processes that buyers go through to come to their
decision, then more influential and personalised actions can be taken to ensure they
purchase their brand.
Purchasing Decision
After all of the above stages are dealt with, the consumer has made their decision and is
now ready to make their purchase. However, Blythe (2005) explains that marketers still have
one last chance to alter the consumer's decision, with a last minute promotion or offer
perceived to cast final doubts in the mind of the customer. Another factor maybe a difficult in-
store experience, with the customer experiencing difficulty in finalising their purchase due to
a bad shopping experience (Dudovskiy, 2012). In this case the consumer is most likely to
choose a previously used, trusted retailer (, or depending on the time constraints, simply the
nearest and most convenient outlet to them (Dudovskiy, 2012).
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Post-purchase Behaviour
Mugge, Schifferstein and Schoormans (2010: 271) explain that here consumers will judge
the effectiveness of their purchase based on ‘their experiences with and feeling towards’ the
product, which will determine whether a tendency to replace their purchase will occur.
Researchers (Brassington and Pettitt, 2007 and Kotler and Armstrong, 2010) generally
consider this behaviour to be of great relevance to marketers, as if they have succeeded and
the consumer portrays a positive experience from the purchase, then repeat business
becomes more probable along with the likelihood of word-of-mouth marketing.
However, maybe more information can be obtained from dissatisfied customers, where such
behaviour is referred to as post-purchase dissonance (Brassington and Pettitt, 2007; Kotler
and Armstrong, 2010; Blythe, 2005). Forceful, over exaggeration of a products
capabilityTherefore, Lake (2009) recommends marketers be as accurate as possible
regarding the product information available to consumers, so not to incur the risk of post
purchase dissonance occurring, instead gaining the rewards of positive buyer feedback and
possible retention.
If the battle for customers wasn’t competitive enough already, the emergence and
development of the internet and online shopping has conjured up something more for
marketers to consider. The digital capabilities of consumers, more so now with mobile and
tablet devices, is something that Elkin (2013) believes places consumers constantly in the
consideration phase for purchasing, though they may not even be conscious of this. Though
there are certain similarities that online consumers share with the traditional customer, it has
also revealed differences which organisations must react to (Constantinides, 2004; Haubl
and Trifts, 2000). The ‘proliferation of online shopping’ has therefore led to increased
importance on the study of e-consumer behaviour according to Dennis et al. (2009: 1122).
2.4 The Online Consumer
Commentators (Constantinides, 2004; Banerjee, 2013) have identified a common theme
which has appeared in much of the research around the area of consumer behaviour; in the
opportunity it presents consumers to make better informed buying decisions. Consumers
now have the ability to access more extensive information more efficiently according to
Bourlakis, Papagiannidis and Fox (2008), with there even being entire comparison and
review websites, such as Oddschecker within gambling, designated to aiding and simplifying
buying decisions. This can have a great influence on the information search and alternatives
evaluation stages of the decision making process according to Senecal, Kalczynski and
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Nantel (2005), where the emphasis is on comparing alternatives most fit for the needs of the
consumer. This leads Haubl and Trifts (2000) to conclude that the online decision process
largely comprises of just these two stages.
Having this option can be a worry for businesses and marketers, as the enhanced options to
choose and compare from, means ‘a competing offer is just a few clicks away’ (Shankar,
Smith and Rangaswamy, 2003: 154). Dennis et al. (2009) believes that this plays an
important role in helping consumers connect to stores and markets that may have been
previously unexplored, leading to greater interaction between retailers and consumers on a
global scale (Banerjee, 2013). Though it can assist the consumer in their decision making,
Peterson and Merino (2003) believe that in turn this can also be used by businesses to
easily analyse the behaviours and trends of consumer purchases, which they can then use
to help personalise goods and services to a target audience or set group of consumers.
As with all marketing, businesses need to find out what’s best for their customers to, in
return, get the best out of them, arguably more in the online environment. Constantinides
(2004: 112) explains how the differing and ever expanding nature of the online market
makes it therefore a top priority for retailers to be able to understand ‘the mechanisms of
virtual shopping and the behaviour of the online consumer’.
According to Dennis et al. (2009), one of the major aspects which must be included in an
online marketing strategy is the ability to build consumer trust. This is considered to be of
high importance to online retailers, with Constantinides (2004) arguing that trust may even
be considered to be another stage in the online decision process. This trust is generally
established through the transaction process when purchasing online according Kim, Ferrin
and Rao (2007), wherein the physical exchange of money in stores is substituted for the
exchange of money via credit and debit card transactions, otherwise known as e-cash.
Alese, Dada and Ayeni (2013) explain that if retailers are able to create an environment
where the proposed buyer feels safe and confident about the exchange of personal
information and bank details then mutual trust has been formed. Establishing consumer trust
is more likely to increase as consumers become more experienced purchasing online. This
can in turn positively influence their intention to continue with it (Dennis et al. 2009). Dennis’
(2009) study also revealed that further factors such as site navigation and convenience
contribute towards a consumers overall trust and satisfaction of a site, Furthermore, these
aspects are likely to be factored in to the decision making process as consumers become
more experienced online.
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2.5 Online Customer Retention and Loyalty
In all industries the ability to maintain a loyal customer base is desirable for businesses,
none more so than when talking about online customers. Chen and Wang (2008) believe
that this task has become an important concern for businesses, as the difficulty of achieving
customer loyalty has increased with the consumer’s enhanced ability to search for
alternatives online. The general mode of customer loyalty is linked to the consumer’s
satisfaction with a product or service, though Lake (2009), further adding however, that a
satisfied consumer does not always mean they are loyal. Past research has shown that
maintaining a loyal customer base is more profitable to businesses than trying to acquire
new ones (Thaichon, Lobo and Mitsis, 2014). Close (2012), adds that from a marketing
perspective, the integration of strategies across marketing channels is critical in helping to
retain customers and creating loyalty. However, Shankar, Smith and Rangaswamy (2003)
believe that managers fear that even if this is achieved online; the likelihood is that it may not
lead to higher loyalty. Rafiq, Fulford and Lu (2013) therefore believe that it is of undoubted
significance that businesses understand the importance and role of customer loyalty in order
to be sustainable and profitable in the online marketplace.
The ability to achieve loyalty means businesses do not have to worry about re-selling
themselves to consumers according to Lake (2009). This also means the same in the
instance of the consumer, in them not having to revisit the decision making process in
search of an alternative. Gommans, Krishnan and Scheffold (2001) state that ultimately to
create loyalty, the the all-round package of the business must meet the all-round needs of
the customer, adding that although consumers may still acquire convenient short-term
purchases elsewhere, this is unlikely to have an effect on consumer loyalty in the long term.
Determinants to success in creating customer loyalty were a feature of Dennis’ et al. (2009)
work, outlining the trusted privacy policies and efficient and accurate delivery processes, with
Lake (2009) and Gommans, Krishnan and Scheffold (2001) adding that the quality of the
customer support and engaging product appearance are also key in helping to build
customer loyalty.
All in all there are no guarantees in predicting what consumers are going to buy, the way
they behave towards a product or service, their thought process before purchase or if they
will remain loyal. However, businesses can put themselves in the best possible position by
conducting thorough research and analysis into their customers and developing
personalised and engaging strategies to give them the advantage in the competitive online
marketplace.
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2.6 Social Media MarketingFigure 2 - Amount of Active Social Media Users
(Kemp, 2014)
Social media has provided a way in which companies are able to extend their marketing
campaigns to a wider audience according to Paquette (2013). Saravanakumar and
Suganthalakshmi (2012) believe it to have been a phenomenon very much welcomed by
businesess of all sizes, with Constantinides (2014: 41) adding that the inclusion of social
media is a 'strategic imperative' alongside the regular methods within a business's marketing
strategy. These thoughts appear to be confirmed by the fact that 93% of companies report to
use social media feeds to promote and advertise them online (Cooper, 2013).
There are numerous amounts of social media sites available on the internet for businesses
to utilise. However, Saravanakumar and Suganthalakshmi (2012) reveal that social
networking sites Facebook and Twitter, currently rank as the sites which are incorporated
most commonly by businesses as marketing tools.
Figure 3 - Most Commonly Used Social Media Marketing Tools
(Saravanakumar and Suganthalakshmi, 2012)
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The ubiquitous accessibility consumers now have towards social media leads Schulze,
Scholer and Skiera (2014: 8) to state the importance of companies to not only 'establish a
social presence' but look beyond that to ensure that they 'get social media marketing right' .
For that reason, it therefore envisages the need for companies to understand the key,
differing concept of social media marketing according to Fisher (2015: 51); acknowledging
'the central role that the audience plays in it'.
Social media isn't completely afloat from the traditional methods of marketing. Agresta and
Bough (2011: 2) explain how social media shares similarities with TV and print marketing,
with regards to it also being used as a method of communication. However, it is added that
unlike traditional marketing channels, where 'the consumer is receiving' (Bough, 2011: 2),
social media allows for interactivity between the marketer and the consumer, making it
possible to easily connect with current customers and attract new ones (Funk, 2013). As a
result, Evans (2008) believes that because of this, social media is therefore a more effective
means of receiving and sharing information (Figure 4).
Figure 4 – Ladbrokes Social Media
(Twitter, 2015)
This ultimately nullifies the appearance of the audience as being 'passive and atomised' as
is apparent within mass media (Fisher, 2015: 51). Evans (2008) highlights the change in
approach from traditional media, Sarnoff's Law, to today's evident potential for networking
through social media, Reed's Law.
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Figure 5 - Sarnoff's Law and Reed's Law
(Sarnoff's Law; cited in Evans, 2008) (Reed's Law; cited in Evans, 2008)
Evans explains how Sarnoff's diagram depicted the single voice of a TV or radio broadcast,
which could be generalised to marketing wherein the outreach of the message would only be
effective in relation to the amount of viewers/listeners that are tuned in. Opposing this,
Reed's more recent portrayal of the effectiveness of social media, informs that no matter
how small the audience is it still has the potential to be relayed on multiple times in a matter
of minutes.
This has warranted a perceived shift in power according to Kaplan and Haenlien (2010),
wherein marketers are no longer able to control what is said about them. Strategic
advertising and marketing is resultantly threatened, as Evans (2008: 20) explains social
media provides consumers with the platform to 'remix, restate and then republish their
version of anything that comes their way'.
This shift has led Weinberg (2009) to consequently assume that this has resulted in
marketers having to relinquish their generic marketing messages of talking at people, to
adopt the social media ethic of talking with people. It is this shift which Zarella (2009: 3)
stresses is of unequivocal importance to marketers switching to social media, stating that
'one of the worst mistakes a social media marketer can make is to apply the same strategies
from the offline broadcast world to the social web'. Though the core marketing principles will
still apply; target market identification, differentiation, brand recognition etc. (Singh and
Diamond, 2012), Agresta and Bough (2011) and Brown (2012) discuss that companies must
17
establish that it is a significant change in the way they are communicating with consumers
which is required to fully utilise this medium. Funk (2013) believes that what companies
communicate through social media should be aspiring to achieve any of these four main
goals;
1) Brand Engagement, Advocacy and Loyalty.
2) Customer Service
3) Lead Generation and Brand Awareness
4) Revenue
At its foremost, Singh and Diamond (2012) explain that the simplistic concept of marketing
through social media is a three way interaction. Companies attempt to reach social
influencers, who in turn then act themselves as marketers, relaying the original message
onto others who listen to them. Agresta and Bough (2011: 2) accept this premise, alluding to
the point that, within social media, anyone can be regarded as a social influencer, as you are
being 'observed by others who have chosen to pay attention to you'. 'And that is where
social media shines' according to Funk (2013: 66), as online it stretches beyond the
judgements of close friends and family, believing that the thoughts and opinions of strangers
can be just as effective towards an individual's decision.
Though businesses must look to re-think their marketing approach and structure, Singh and
Diamond (2012: 1) conclude that marketers are amidst a 'unique marketing opportunity'
provided by social media. Hanna, Rohm and Crittenden (2011) remark that, in order for
businesses to be truly effective within this mean, they must learn to integrate their social
media campaigns successfully across multiple platforms. However, as much as this can be a
major benefit to businesses and a way of increasing the reach of the message to potential
consumers, Evans (2008: 20) reiterates the power of the consumer and the damaging effect
that a negative response can have; 'when they agree and amplify your message, it's
wonderful. When they don't, it can get ugly fast'.
A common form of interaction which takes place between betting companies and consumers
is with regards to customer support. On one hand, this can be a brief interaction in which a
customer issue can be resolved instantly (figure 6).
Figure 6 - Positive Customer Reaction on Social Media
18
(Twitter, 2015)
However, on other occasions it can take a different direction, wherein the aggrieved
customer can vent their frustrations towards a company with the interaction open to public
eyes.
19
Figure 7 - Negative Customer Reaction on Social Media
(Twitter, 2015)
The Ladbrokes Strategy
Ladbrokes state that they are still the most recognised betting brand in the UK. However, Da
Silva (2008) explains the perceived anomaly of this tag, charting the example of online giant,
Amazon, whom though within their early days of plying in the online market achieved high
brand recognition; they struggled to convert this into profit. This appears to reign true for
Ladbrokes, with Walmsley's (2014) online betting market share table displaying their current
online performance struggle.
20
Figure 8 - Online Betting Market Share
(Walmsley, 2014)
This has clearly been recognised as an area of concern, with work to improve their online
offer already beginning, with the introduction of their new exchange sportsbook, to rival the
concept already employed by Betfair. At the beginning of 2015, Ladbrokes outlined 5 key
strategic priorities to help achieve their overall objective of building an ‘e’ enabled
international betting and gaming business (Ladbrokes, 2015).
The 5 key strategic priorities are;
1) Retail Excellence
2) Digital Capability
3) Pricing, trading and liability management
4) Customer and Brand
5) Regulatory Leadership
The areas of interest within this research permits closer examination of the ‘Digital
Capability’ and ‘Customer and Brand’ strategic priorities.
Within the ‘Customer and Brand’ segment, one of the ways in which Ladbrokes look to
bolster this in 2015 is by continuing ‘to re-energise the brand: Building on the launch of the
Ladbrokes Life TV campaign we will be seeking to embed the new brand into everything we
do from customer service to social media’ (Ladbrokes, 2015). Brand research and retail
marketing director for Ladbrokes, Andy May (2014; cited in West; 2014: no page), explained
21
how the new campaign was designed to put the customers at the forefront by saying to them
that ‘Ladbrokes understands you, knows what you like, and how you bet’.
The use of social media within the customer led campaign refers back to Funk’s (2013) four
main points, which companies hope to achieve through that creative. Through stating
customer service within the objective, it is apparent this is an area that Ladbrokes will very
much concentrate on, in hoping to maximise the success of the campaign. Additionally, the
customer emphasis of the campaign also places importance on the ‘brand engagement,
advocacy and loyalty’ and ‘lead generation and brand awareness’ points. This is not to totally
discount revenue, as this will naturally be an objective for any public limited company.
Through using social media, Ladbrokes will be able to market the campaign message to
their current combined 496,739 Facebook and Twitter followers (Facebook and Twitter,
2015).
22
3.0 MethodologyThe purpose of constructing a research methodology is important in assisting a researcher
to ‘explore, probe and solve an idea or paradigm’ (Clarke, 2005; p.23). It generally entails
creating a suitable design and format to the research, increasing the ease and efficiency at
which it can be carried out (Rajasekar, 2013). The purpose of this research permits to
explore how different individuals associate themselves with online gambling, indicating the
need to approach the data collection stage from an epistemological view point.
3.1 Epistemology and Interpretivism
The term epistemology is defined simply as the theory of knowledge (Gratton and Jones,
2010). The fit an epistemological approach has to this research is due to the way the
researcher emphasises the severity of the consideration of individual narratives (Young and
Atkinson, 2012), wherein despite the thoughts of each subject participating within this
research may alter, they are all deemed to be equally important when contextualising the
overall results. Furthermore, Gratton and Jones (2010) recognise sport as being a social
phenomenon, hence why an interpretivist epistemological approach is more applicable to
this research.
3.2 Qualitative and Mixed Method's
Methodologists commonly state that the natural pathway for an interpretivist is to undertake
qualitative research (Gratton and Jones, 2010; Young and Atkinson, 2012), as its subjective
stance shares many of the same theoretical assumptions outlined within the interpretivist
model (Matveev, 2002). This research has predominantly followed this premise; however
quantitative elements have been included within the data collection, when trying to gain an
understanding around the frequency of the perceived gambling behaviours, before reverting
back to a qualitative reason. This therefore details that the research applied a minimal mixed
method approach. Including elements of both research types can help create an overall
better understanding of the research problems according to Cresswell (2006) with Nau
(1995; p.1) adding that the two combined 'can highlight the significant contributions of both'.
Though both methods were utilised, the research remained inductive as the data aimed to
explain patterns in consumer trends and behaviour towards online betting in order to provide
suggestions for Ladbrokes as to what the data could entail for their future strategic and
marketing activities.
23
One of the key features examined in this research, was the online marketing strategies of
betting companies and their effectiveness in attracting new customers to sites. Smith and
Stewart (2001) documented an apparent under-utilisation of qualitative research within the
field of sports marketing. Though the research employed a mixed method approach, the
information extracted from qualitative methods provided the basis on which to compare the
current strategies of Ladbrokes and other online sites and how these fit to the explained
needs of the customer.
3.3 Data Collection
For the purpose of this thesis, a combination of research methods have been utilised to
attain the desired primary, empirical data. The primary data collection methods used within
this research was questionnaires, a student focus group and an email interview. According
to Gratton and Jones (2010), conducting primary research is generally considered to be
more time consuming as opposed to secondary research. However by examining individual
behaviours and preferences towards betting and different sites, the ability to personalise the
questions directly to subjects was helpful in achieving a more specific set of responses
(Ohm, 2012). To enhance the clarity of the findings, some secondary evidence was also
provided. This was mainly around the strategic position of Ladbrokes due to the failure of
sealing an interview with a company representative.
3.4 Questionnaires
The decision was made to conduct the questionnaires online, so to give greater accessibility
to a wider audience (Gratton and Jones, 2010), of whom would be out of reach if only face-
to-face hard copies were distributed. However, Wright (2005) explains that researchers can
encounter sampling issues, as the open public domain of the internet can lead to potentially
irrelevant respondents, whom do not fit the criteria of the desired target group. Therefore it is
essential that the questionnaires were made visible within specific online settings, such as
betting forums/pages, where they were most likely to attract the necessary participants.
When advertising the questionnaires in non-specific environments, social media sites etc., it
was made very clear within the partnering caption that only people who participate in online
gambling were sought after.
It is important to try and gain a wide range of participants according to Key (1997), as within
this research a minimum of 100 responses was desired so that any assumptions made have
24
an aspect of validity, as opposed to only gaining a small amount of responses from
recognised subjects which could in turn influence researcher bias. As discussed, to achieve
this; social media streams and online forums were exploited as well as contacts from other
universities whom were then able to pass on the link to fellow students. This also included
contacting betting sites and other recognised betting pages via Twitter/Facebook etc, so to
try access participants other than students. This was performed so to provide a fairer
representation of the betting community as a whole, instead of having responses from just a
small section, wherein the results would be less generalizable.
As the questionnaires were online it was important that the design format stayed simplistic
and easy to understand, so to eliminate any confusion on the part of the subject. This
therefore required careful planning to ensure that the quality of the questions were not
sacrificed as a result, thus providing both the relevant information required for the research
and in a user friendly format for subjects to complete (Gratton and Jones, 2010).
3.5 Interviews
Due to unavailability, an interview with a Ladbrokes representative was unable to be
secured. Instead, e-mail contact with a former employee of bet365 was arranged, so to at
least provide some perspective of the betting company, though it wasn't the desired one of
Ladbrokes. The drawback of e-mail contact is that it limits the exchange of information
between, with the interviewer unable to probe deeper into an answer like possible with face-
to face or phone interviews (Valenzuela and Shrivastava, 2008).
3.6 Focus Groups
A single focus group comprising of 5 participants, was used for this research. The
participants, male students aged 20-21, were selected for the primary reasons of being
online gamblers and for convenience. For the purpose of the research it was imperative that
the subjects were all familiar with online gambling to not only participate within the activity
but so that they would be able to engage in meaningful discussion regarding the research
questions to follow on from the activity.
Langford and Mcdonagh (2003) also discuss that focus groups create the potential for
participants to add further points which may not have been considered, which within this
research would apply to extracting information directly from the questionnaire responses.
The session included an interactive activity for the participants to complete, where the
25
difficulty to navigate around online betting sites was tested. This provided the opportunity for
individual feedback from each participant, as Langford and McDonagh (2003) explain that it
is common for some focus groups to be dominated by certain subjects, potentially nullifying
the input of other group members. However, by selecting a group of participants whom were
all familiar with each other, this reduced the likelihood of subjects being uncomfortable to
voice their thoughts, providing the basis for a thorough discussion.
3.7 Validity and Reliability
This research has aimed to maintain complete validity and reliability throughout its entirety.
However as stated, certain alterations to the data collection processes have been outlined,
which may be deemed to have affected the validity and reliability of the research results.
Conducting mixed method research is one way in which to increase validity according to
Ihantola and Kihn (2011), hereby through following the explained theory behind the data
collection methods, this research can preserve its validity.
Measuring reliability is considered to be very different between qualitative and quantitative
studies according to Golafshani (2003). Therefore Zohrabi (2013) explains how a mixed
method approach should incorporate different data collection procedures to warrant
producing a reliable set of results.
3.8 Limitations
The main change which could be made to improve the quality of the research is by selecting
a more random sampling group for the focus groups and questionnaires. This would help to
reduce researcher bias, which is common when using qualitative methods according to
(Shenton, 2004). To gain a greater reflection of the general behaviour and opinions of
betting consumers, gaining a more random group of participants with respect to age and
occupation status etc., would help in increasing reliability. However, within this research,
there is no real definitive response which is desired to bolster the strength of the results,
subsequently making it both difficult and unnecessary to tamper with the findings.
26
3.9 Ethical Considerations
Throughout each method it is important to consider the ethical consideration involved from
using external participants. No personal information was required throughout any of the data
collection methods, with a confidentiality statement being included at the beginning of the
questionnaires to ensure total anonymity. All recordings from the interview and focus group
were made aware to subjects prior to the scheduled meetings, and subsequently erased at
the conclusion of the research project. As this research is based around betting, all subjects
whom participated were aged 18 or over, thus being old enough to provide their own consent
to participate in the study.
This methodology plan explains the processes necessary to ensure the extraction of
accurate data, ultimately enhancing the overall quality of the finished research. Sticking to
this plan and paying close attention to the fine details included is a continuation which must
be maintained going into the next stage of the research process; the results analysis.
27
4.0 Results and Discussion4.1 Questionnaire Respondents
The research questionnaire returned 72 completed copies available for analysis. On some
of the earlier questions, the response number is higher due to some respondents starting the
survey but failing to finish it. The reason for this is unbeknown, but their responses still
remain within the analysis of the data. Ideally, the questionnaire would have been desired to
return in excess of 100 responses, however along with the accompanying focus group, it is
still provided some key findings helping to give an insightful set of results and subsequent
discussion.
4.2 Age Breakdown of Respondents
Figure 9 - Questionnaire Respondents age Breakdown
The research questionnaire was relatively successful in gaining a mixed set of respondents.
Though the respondent group largely consists of the younger population group, the
questionnaire has been able to capture members of the adult and older betting populace.
However, the data collection group predominantly represents the main target market for
betting companies according to former bet365 employee, Daniel Pyle.
28
4.3 Betting Site Consumers use most
Figure 10 - Betting Site Consumers use Most Commonly Now
Sky Bet
William Hill
Ladbro
kes
bet365
Paddy P
owerBetf
airCoral
Others02468
10121416
Betting Site Most Commonly Used Now
Betting Site Used Most Commonly
The results for what betting site consumers use most commonly revealed some very
interesting findings. As shown (Figure 10), none of the questionnaire respondents charted
Ladbrokes as their main online gambling site; instead the verdict delivered a three way tie at
the top with each Sky Bet, bet365 and Betfair, receiving a 22% of share of the responses.
This immediately places Ladbrokes' 2015 objective of becoming an ‘e’ enabled international
betting and gaming business' in rebuke, as the results expose that, within their online
operations, they seemingly appear to fall markedly short in terms of popularity compared to
their online rivals.
4.4 Customer Loyalty and Retention
The accompanying results from the research questionnaires highlight a perceived lack of
loyalty within online betting consumers, as only 27% of respondents report to still be using
the same site now as they did when they first started using online gambling. This figure
stresses the difficulty for companies to retain the services of existing customers, with the
ensuing sections aiming to provide answers as to the reasons why betting consumers may
choose to switch between online betting sites..
29
4.5 Betting Site used first
Figure 11 - What Betting Site did Consumers First use?
Sky Bet
William Hill
Ladbro
kes
bet365
Paddy P
owerBetf
airCoral
Others048
121620
What Betting Site did you First use?
What Betting Site did you First use?
The change in sites from what consumers first used when joining online gambling compared
to what they use now, displays a disparaging lack of loyalty from consumers of some sites.
Though Ladbrokes initial users ranked lower than the majority of their competitors, they were
still unsuccessful in maintaining their services, with users choosing to migrate over to an
alternative site. Following Gommans, Krishnan and Scheffold's (2001) premise, a potential
response to Ladbrokes' inability to retain customers, indicates that their online offer failed to
meet the all-round needs of the customer. This must pay reference to Thaicon, Lobo and
Mitsis' (2014) point that a loyal customer base is more profitable to businesses than trying to
acquire new ones.
4.6 Reasons for Choosing First Site
Figure 12 - Reason for Choosing Initial Betting Site
30
4.7 Brand Recognition
Figure 13 - Name a Betting Company
The result that consumers' initial decision is based on the company they recognise most,
implies the thinking of Pradhan (2009; cited by Dudovskiy, 2012), where the extent of the
consumers search is dependent on how much they value their current information levels.
With this it is feasible to suggest that, with some online gambling consumers, the information
search may not even occur as the customer's decision is simply a reflection on which
company they deem to be most recognisable to them. This ignores Bourlakis, Papagiannidis
and Fox's (2008) point, that decisions can be enhanced through the extensive amounts of
information which is available online. It can also be proposed that if these consumers bypass
the information stage, then betting related marketing is largely irrelevant to this populace.
The premise that the choice is based on consumer recognition seems evident that some
bettors have little interest in what companies are offering; nullifying Thomas' (2014)
argument that marketers must be most effective at this stage of the decision making
process.
The correlation shown in the results from figure (12) and (Figure 13) provide an explanation
for William Hill being ranked the most popular initial start-up site by the respondents. This
was a point echoed by one participant from the focus group, who explained
"I used to go =William Hill= shops, and I just find it easier, y’know you just go
straight to the same one, same company, not as, not as in loyalty but as in
recognisable"
(Appendix 14)
31
Name a Betting CompanyWilliam Hillbet365BetfairSky BetPaddy PowerLadbrokesCoralBetfred
The fact the participant states their support for William Hill but goes on to dismiss the
decision as being a show of loyalty, supports Lakes (2009) point that even though a
customer maybe satisfied, it doesn't mean that they are loyal and further reiterates the
suggestion that betting consumers are very open to the option of switching between sites.
This is evident with William Hill's loss of customers.
Only 11% of respondents stated Ladbrokes when asked to name a betting company, with a
third of the same group going on to use Ladbrokes as their initial betting site, opposing the
statement that they are' the most recognised betting brand in the UK'. These findings
suggest that at current, Ladbrokes as a brand lacks appeal to the modern day betting
consumer, concurring with one of the companies objectives for 2015 in continuing to 're-
energise the brand'. However, even if this is achieved, referring once more back to the
example of William Hill; basic brand recognition alone appears to be inadequate in retaining
customers, with the ease at which consumers are able to and willing to switch (Appendix 6),
suggesting that if consumers believe that they can enhance their online experience and
receive better value elsewhere, then they will have no qualms in doing so.
4.8 Sign up Offer
The 'sign up offer' ranked as the second most common reason as to how the respondents
choose their initial betting site. This result may well explain as to why Sky Bet was a popular
choice with respondents when they started online gambling, as they used to employ a £5 no
deposit free starting bonus, which at the time was completely unique, compared to the offers
available from other sites. Of the respondents whom reported using Sky Bet as their initial
site, 65% stated that the main reason was due to the companies sign up offer. A couple of
participants from the focus group explained the appeal of such an offer and why it was the
deciding factor in securing their services. One participant stressed;
"I used It originally because it gave you £5 free, and properly free, you don’t have
to stake anything".
(Appendix 14)
With this purpose, it is reasonable to imply that the information stage is of high priority to
consumers, therefore giving regained importance to Thomas' (2014) argument regarding
how marketers must be effective in capturing the attention of the consumer at this juncture.
This point may now be even more relevant, as Sky Bet no longer provide this offer for new
customers. The focus group participants, whom originally opted for Sky Bet because of the
32
deposit free bonus, stated that they would still base their decision now on the best sign up
offer if they had to decide again on a start-up site. Furthermore, one participant stated that
they would stray from their regular site just too simply exploit the sign up offer of another
company, then return to use their regular site. This could explain the result which stated that,
on average, respondents are registered with at least 4 different betting sites (Appendix 6).
This act is representative of common consumer behaviour according to Solomon, Russell-
Bennett and Previte (2013) wherein an individual will use a product to satisfy their needs,
and then dispose of it once those needs have been satisfied. However, Gommans, Krishnan
and Scheffold's (2001) point that short term consumer purchases with an alternative, has
little effect on long term loyalty, suggests that this revelation should be of minimal concern to
companies.
Table 1 - Current Sign up Offers
(Oddschecker, 2015)
Table (1) shows the current sign up offers of the top 6 betting sites. Blythe (2005), states that
marketers must gage what it is that consumers are evaluating when it comes to the stage of
comparing alternatives. From the findings, Ladbrokes' offer appears to be one of the least
rewarding for new customers, suggesting that they would gain few, if any, customers whom
base their decision on the sign up offer. This once more doesn't bode well for a company
with the objective to become 'e' enabled', as they must look to make this aspect of their
online offer more competitive in an attempt to influence customers to sign up with them.
33
4.9 Reasons for Using Betting Site now
Figure 14 - Reasons why Respondents use a Betting Site now
Reasons for change, may well be down to consumers portraying post-purchase dissonance.
Marketers are here presented with a valuable opportunity to re-target their product at
consumers searching for an alternative.
4.10 Best Odds and Betting Markets
Respondents earmarked having the' best odds and betting markets' as the main reason for
their current choice of betting site. This result may well explain the increase in users of
Betfair and bet365 from figures (11) and Figure (10), with 83% of respondents who stated
'best odds and markets' as the main reason for their site choice now, using either of these
two sites (Appendix 2). One focus group participant emphasised bet365's extensive in-play
markets, which coincides with their 'in-play with Ray' ad campaign. Through compliance with
Dudovskiy's (2012) premise, implementing a marketing strategy which highlights the aspect
which differentiates bet365's offer from their competitors, can aid in swaying the consumers
decision process in their favour. Daniel Pyle adds to this:
"bet365 places a large emphasis on In -Play, alongside with the cash out facility.
Cash out is a huge factor (I'm go as far to say, one the biggest factors) for generating
and retaining customers. So by having Ray promote two of the most important
features for customers at times when the target market is watching, it's a major factor
for generating customers and raising the awareness of the organisation".
(Appendix 15)
34
Pyle's claim that this helps raise the awareness of the company, is in relative accordance
with the results shown in figure (13). However, in retaining customers, only 40% of
respondents who started using bet365, still use the site now. Though, only five individuals
reported to using it initially.
With the results showing a switch in site preference over time, this supports Senecal,
Kalczynski and Nantel's (2005) suggestion where consumers will actively search for
alternative sites which they perceive to offer them better value than their current choice. One
participant of the focus group indicated that better value became more important to them
when there were higher stakes involved. This also appears to be fairly representative of the
questionnaire respondents, with 49% of bettors who bet at least £10 a week, recording 'best
odds and markets' as the reason for choosing their current site (Appendix 5). However,
though this factor determines common use of a site, figure (15) suggests that this also
sacrifices loyalty, with the number of respondents whom still use other betting sites generally
increasing, in relation to those who don’t, as the amount staked rises.
Figure 15 - How Amount Staked Determines use of their Sites
For consumers who wager larger amounts, this
suggests that the number of alternatives
included within their consideration set, Blythe
(2005), is supposedly limitless, as well as
constantly in fruition, with them being open to
shopping around for the site which gives them the best return for their stake. Loyalty,
however, appears to be more prevalent with consumers who wager less, with none of the
respondents who wager under £2 a week stating 'best odds and markets' as their main
reason for choosing a site (Appendix 7). One focus group participant stated that, in order for
them to consider searching around for the best price on a certain market; they would have to
stake a minimum of £10. However, this is likely to alter for each individual.
Through enhancing the options available to customers, with the introduction of the new
betting exchange option, Ladbrokes appear to be recognising the need to bridge the gap
between themselves and their competitors. However, the rewarding cash-out incentive is
something which is missing from their website, with it only being available to mobile
customers. With reference to Daniel Pyle's earlier statement, the appeal of this offer 'in
generating and retaining customers', queries as to why Ladbrokes have yet to make this
available as part of their entire online package.
35
4.11 Site Navigation
Figure (14) shows that some respondents will elect a betting site if it is the one they deem
the easiest to use. Though for many, it wasn't a conclusive enough factor on which to base
their entire decision, it did occur to 81% of respondents that difficult site navigation would at
least make them consider switching betting sites (Appendix 4 ), confirming Dudovskiy's
(2012) point that bad shopping experiences can affect purchasing behaviour. This was
apparent with a couple of participants from the focus group, whom quoted both Ladbrokes
and bet365 as sites that they had experienced difficulties in navigating around, thus
choosing to no longer use either of the sites. With regards to Sky Bet, another participant
added that, though site navigation wasn't the original reason for joining the site, It is the
reason why continued to use it. This implies that site navigation could well be a factor to
encourage loyalty and retained use, thus relating to Dennis' (2009) point that site navigation
factors increasingly more into the decision making of consumers as they become more
experienced online. To further this suggestion, another point of Dennis' (2009) details the
impact of efficient delivery processes which appear to have helped Sky Bet secure loyalty of
the focus group participant.
Sky Bet was the most commonly used site out of the 28% of respondents who deemed this
as a contributing factor towards their decision (Appendix 3). This result supports comments
from the focus group and suggests further signs of loyalty, where a couple of participants
stated that regardless of the type of bet or the amount staked, they would always use Sky
Bet because it was the site they found easiest to use.
4.12 Marketing Communication Methods
On the subject of marketing communication for betting companies, Daniel Pyle explained;
"There's definitely a marketing push within the Industry to migrate customers to
online because of the financial costs of operating stores. Labour and premises are
always going to be big costs for companies so they will definitely be looking to save
on costs by moving customers online".
(Appendix 15)
With the importance of marketing and communicating with customers emphasised more so
now, the following sections will discuss the proposed impact of the communication methods
employed by companies in the attempt to engage with new and existing betting customers.
36
4.13 TV Adverts
Figure 16 - Most Recognised TV Betting Advert
Most Recognised TV Betting Advert
bet365Paddy PowerLadbrokesWilliam HillCoralOther
The results revealed that the advert most recognised by the respondents was Bet365 with
Paddy Power a close second. The pair amounted 65% of the responses between them, with
only 3 other companies receiving a meaningful amount of recognition as displayed within
figure (16)
Though 20% (2nd highest) of questionnaire contributors ranked TV adverts as the most
effective means of marketing with regards to online gambling, respondents deemed TV
betting advertisements to be largely ineffective as a mode of motivating the same
respondents to place a bet. 57% stated that betting adverts had no effect on their urge to
bet; whereas only 8% documented that they would always be motivated commencing the
viewing of a TV advertisement (Appendix 11).
However, the focus group discussion revealed that TV ads can have an impact upon betting
consumers, explaining that adverts placed around and during (in-play) sporting events may
encourage them to bet. One member stated that 'the only time I'll bet in play is when one of
the offers comes up on the advert'. This may potentially account for the populace whom
regarded themselves as 'sometimes' motivated by betting ads. Furthermore, most
participants added that their decision to wager in-play during a sporting event may also be
influenced to make for more exciting viewing, explaining that 'if it's boring as well it makes it
a bit more interesting'. It also occurred to a couple of participants that adverts become
increasingly enticing if a bet placed prior to the event had already been unsuccessful, in so
exploiting an in-play offer in an attempt to recoup their pre-match stake. A couple of
participants concluded that they would go to the lengths of opening a brand new account
37
with a betting site just so they could exploit an offer seen via a TV advert. This is supportive
of Elkin's (2013) idea that online consumers, maybe without knowing it, are always in a
phase of consideration.
This evidence bodes very well for Bet 365, and may well be an explanation for the
respondent results, whose half time adverts ‘In-play with Ray’, appear during most live TV
football and other sporting matches shown on satellite television. As discussed, this slot not
only positions them perfectly to capture the desired target audience and enriches the
message of their ad, but according to the focus group discussion, appears to also catch
bettors at a time when they can be most influenced to bet. One participant explained the
effectiveness of this slot, stating
"They know you’re not doing anything at half time, and you’re watching the game,
so it’s like something they’re tryin’ to do to make you more interested in the
game "
(Appendix 14)
Former employee of bet365, Daniel Pyle, was able to add further insight into the successes
of the ad campaign as well as potential reasoning for the results of figure (16):
"In terms of Ray's In-Play Ads, this has a major impact in generating new customers
especially with the timing of the ads (e.g. half time of football matches) and it's highly
focused directly on their target market and level of visibility it provides is significant".
(Appendix 15)
These findings support Lake's (2009) depiction of consumer behaviour, revealing the
reasons behind what, when and why betting consumers bet as a result of a TV
advertisement. Acquiring knowledge of such information can be advantageous to a betting
company in tailoring their marketing strategies to appeal to their target audience, as
evidenced by the success bet365 have had with their ad campaign.
A further method of communication to take advantage of the consumer's openness to bet
during sports event was mobile notifications. A couple of focus group participants explained
how they receive notifications from Sky Bet, informing them of their offers for that particular
event. By doing this Sky Bet are able to follow Reynolds-Zayak's (2004) suggestion of
creating personalised strategies to appeal to their customer base.
Though still in it's infancy, it could be argued that Ladbrokes' 2014 release of their
'Ladbrokes Life' ad campaign has made an impact on the consumers awareness of the
38
brand. It may be unrealistic at this stage to suggest that the campaign can compete with the
explained success of bet365's multi-channel presence. However, the point remains that
though consumers are aware of the ad, it hasn't yet succeeded in converting these
individuals into customers.
4.14 Social Media
The questionnaire results found social media to be a largely popular marketing method; with
66% of respondents reported following betting related pages on social media.
Figure 17 - Do you follow Betting Sites on Social Media?
However, further results appeared to show the true value of social media, with it being
unanimously considered the method respondents would most likely to be made aware of the
latest betting offers (Appendix 10) but also proved to be the most effective marketing method
with regards to influencing consumers betting habits (Appendix 11). This was confirmed
within the focus group discussion, with a couple of participants particularly detailing Twitter
to be a good location to discover a multitude of different offers from a variety of betting
related pages. Another added that they used social media to 'almost shop around' for offers,
supporting further Elkin's (2013) claim that consumers are always in the consideration
phase, whilst further enhancing Constantinides' (2014: 41) statement that utilising social
media is a 'strategic imperative'.
Figure 18 - Betting Sites Followed on Social Media
39
Figure (18) highlights the betting sites that the respondents have chosen to follow/like
currently on social media. Only 35% of respondents stated to follow Ladbrokes on social
media, with the highest performing brand being Paddy Power, boasting over two times that
amount. Ladbrokes’ lowly customer base on social media places them at an immediate
disadvantage to their competitors, in simply being able to relay their offers and overall
interaction with less current and potential customers. The definition of Reed's Law (2008)
can be exhibited to this, with sites with the higher number of followers having the ability for
their message to be amplified to a wider mass audience through retweets/shares via social
media sites. Furthermore, following on from the results from figure (16), Close's (2012)
insistence on company's integrating strategies across marketing channels, places
Ladbrokes' performance in to disrepute, with the apparent success of their new campaign
failing to be reciprocated from TV audiences over to social media.
Paddy Power's strong presence across both TV and social media is likely to stem from the
fact that they have been able to identify Fisher's (2015: 51) key point of acknowledging 'the
central role that the audience plays in it'. With consumers at the forefront, their social media
led strategy thrives off emphasising Weinberg's unique feature of social media; talking with
people. Once more, a couple of the focus group participants described the effectiveness of
Paddy Power's message, describing it as 'relatable' and 'funny', with a more extensive
description stating:
"I think they’re very recognisable, I’d skip through things on Twitter, but I wouldn’t
skip through =Paddy Power’s= tweets"
(Appendix 14)
However, one participant explained that, despite following them on Twitter for these reasons,
they didn't have an account with them, opposing Close (2012), who stated that loyalty could
40
subsequently be achieved from this. Further evidence confirms that a strong marketing
campaign is not necessarily effective in particularly attracting customer, with only 17% of
respondents who follow Paddy Power using them outright as their main site (Appendix 12).
Social media is also a quick and easy method for companies to deal with customer support
issues. Though little findings regarding the matter can be taken from these particular results,
the example shown in figure (7) within the literature review, emphasise how the inability to
satisfy customer concerns, can lead to loss of customer usage. This relates to the point of
Lake (2009) and Gommans, Krishnan and Scheffold's (2001) that efficient and satisfactory
customer support can help create customer loyalty.
41
5.0 Main ConclusionsTo conclude the results discussion, it is necessary to now assess whether it has been
successful in answering the project research aims and research question;
Success Factors to Improve the Online Performance of Ladbrokes - An Investigation to
determine the factors that influence consumer behaviour within Online Sports Betting.
Examine how different communication methods impact on the decision making
process of online bettors.
Though social media ranked as the preferred medium of marketing communication, this
must not eradicate the high importance of company's communicating to consumers via
alternative marketing channels. The findings appear to show a correlation between
successful communications strategies, across TV and social media, and online performance,
with the example of bet365, but also highlights that a strong cross channel brand presence,
particularly via the customer preference of social media, doesn't always mean securing
repeat customer business.
Furthermore, it is apparent that consumers differ in the stage when they first consider the
content of betting communications to be a relevant factor in their decision making process.
Post-purchase behaviour appears to figure prevalently within the findings, meaning
companies are given the opportunity to re-market; or in some instances, market for the first
time, to consumers re-entering the information and alternatives stages. This further confirms
the need for companies to distinguish a highly visible existence across communication
channels such as TV and social media, highlighting the main reason which differentiates
themselves from their competitors and makes them the most attractive alternative.
Therefore, in order to be successful, companies must first concentrate on honing their online
offer to match the expectations and needs of the betting consumer, and then effectively
communicate their message in a manner which both informs and appeals to what it is that
betting consumers are looking for the most; value and markets.
As a result, a strong emphasis should consequently be on highlighting the best customer
odds and offers; including in-play and sign up deals, with great importance placed on
positioning these across multiple platforms around the times of popular sporting events,
where consumers appear to be most vulnerable to influence. Failure to exploit the
consumer's relaxed state at this point may result in a customer being encouraged to bet
elsewhere, which is why the communicative method of mobile notifications appears to be
42
especially effective for companies to use as a mode to prompt betting behaviour but also a
personalised reiteration for the customer to stick with that site.
Examine whether customer loyalty exists within online betting.
Where loyalty is most likely to occur according to the results, is amongst bettors who wager
smaller weekly amounts. The prevalence of users, who still used other betting sites aside
from their preferred choice, was far less frequent with consumers who expend up to £4 a
week on betting. The smaller stakes suggest money that is deposited is with the view of
lasting longer hence assuming pre-planned continued use with a particular site. This
assumes that this populace are prepared to sacrifice perceived value or better odds, to
instead be content in sticking with a site which matches more closely their expectations of a
betting site.
However, the research findings suggest that, predominantly, customer loyalty is relatively
scarce within the world of online betting. Even after consumers switch to a site which they
deem to be more suited to their needs, loyalty is far from ensured with the apparent
willingness of customers, particularly with bettors who place higher stakes, to continue their
search for better odds and offers in which to invest their money. This concurred with the
average respondent being registered with at least four betting sites, which is strong evidence
to support Elkin's (2013) claim that online consumers are constantly within a stage of
consideration to purchase. A tempting offer is often considered adequate enough to trigger
some bettors in venturing over to a rival site in order to capitalise on a promotion. However,
though this is apparent, consumers will often only switch to explore the option of a
company's sign-up offer, before returning immediately to their previously used site. Though
the technicalities of general customer loyalty would probably oppose; the alarmingly low
levels of customer retention, suggests that this could effectively be perceived as loyalty.
Examine the factors that influence customer loyalty within online betting
The supposed methods of loyalty seem to be largely ineffective in ensuring retained
ownership of betting customers services. The factor which inferred would be the method of
best achieving loyalty; 'Best odd's and markets' - reason ranked most important in selecting
a betting site now, resulted in also being a factor which reportedly encouraged disloyal
behaviour. This was a pattern common with higher stakes bettors, where it seems their
willingness to pursue the best value odds and range of betting markets resultantly made
them far less trusted to consistently remain betting with a site. However, with smaller stake
43
bettors, site navigation appeared to frequently factor in their decision to persist using a
betting site. Difficult site navigation appeared to be a major contributor to customer turnover,
hence why this should be an area of investigation for companies, as losing customers as a
result of this is an occurrence which can be easily avoided.
Though the difficulty of achieving loyalty was a point which was regularly accredited for
within the results and discussion, the mention of the effect of cross channel marketing on
building loyalty appears to reign true. The integration of bet365's popular ad campaign has
shown in the results to have had a successful effect on helping build a more established
customer base. Companies must look to enforce strategies which highlight what customers
want to hear, including the differing factors which bettors deem to be important. Regular offer
promotions are likely to keep consumers interested, especially appealing to larger stake
bettors whom wish to exploit these. Sign up offers most appeal to smaller bettors, hence
providing a competitor offer and communicating it effectively through multiple platforms, can
be the starting point to retaining these customers as long as the site setup matches their
capabilities.
Conduct a competitor analysis to contextualise the current strategies employed by betting sites in relation to the research results.
The competitor analysis has succeeded in highlighting that Ladbrokes are currently being
outperformed in the areas deemed to be of most importance to betting customers when
deciding on their choice of betting site to use online. The self-admittance of poor online
performance through Ladbrokes' goal in becoming 'e' enabled', emphasises the need to
enhance their entire online offer and attempt to comply more with the distinguished needs of
the online betting customer.
A necessary first step would be making the cash out option a part of their main website offer.
With the attraction of the offer to betting customers, limiting the availability of cash out just to
their mobile customers is severely reducing the visibility of the option to potential new
customers. Furthermore, Ladbrokes must also seek to gain a greater social media presence,
following the release of their new ad campaign. Increasing brand awareness must be an
imperative, with brand recognition factoring heavily into consumers' initial choice to join a
site. Social media appears to be a perfect platform in which to achieve this, though as
bet365 have shown, versatility across communication channels largely increases the overall
success and ability in gaining customers.
To conclude overall, compliance with these success factors can help in ensuring that
statements such as this can maybe one day bear an element of truth.
44
"Ladbrokes understands you, knows what you like, and how you bet".
The message of brand research and retail marketing director, Andy May (2014; cited in
West; 2014: no page), to Ladbrokes customers upon the initial release of the new ad
campaign.
5.1 Research Limitations and Strengths
The main limitation of this research is the minimal response group collected by the research
questionnaires. With the main aim of the research firmly based upon examining consumer
behaviour, failure to gain a significant populace of online bettors hinders the overall reliability
of the findings extracted from the data. Therefore, it is difficult to declare any certainty of the
results; hence why the assumptions made within the discussion must be done so with
caution as it may not be a fair representation of the wider online betting community.
Furthermore, concentrating the research findings to suggest measures for improving
Ladbrokes' online performance was made increasingly difficult with the fact that no contact
with a Ladbrokes official was possible. Gaining the perspective from the company itself,
would have been beneficial in comparing the apparent consumer behaviour to Ladbrokes'
perceived knowledge and subsequent strategies to meet the consumer's criteria.
As explained, the data collection was successful in predominantly maintaining responses
from the desired target group that betting company's look to attract. The results were further
enhanced by the focus group discussion, where the participants, aged 20-21, were able to
provide a more detailed interpretation of the questionnaire focus and research aims.
Therefore, with the combination of the two, it can be suggested that, though they still require
caution, any concluding comments and assumptions are somewhat realistic.
5.2 Recommendations for Future Research
Though it is difficult to state whether the results will be replicable, the research design and
data collection methods are transferrable to support the basis of any further research in this
field. Therefore, it is recommended that minimal changes are made to the research
structure; instead the emphasis should be on achieving a greater number of respondents so
to provide conclusions and assumptions with added reliability when answering the aims of
the research. This premise was also apparent
Word count 12,092
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7.0 Appendices7.1 Appendix 1: Progress Record Form
Print off an electronic copy of this form from the Blackboard site for the module.
Student Name: (Please Print):......................................................................
Stage 1: Progress Record - to be signed by supervisor on or before the 8th teaching week of semester 2 (or 4 weeks from the handing in date)
You must obtain a signed and dated signature from your supervisor indicating you have engaged appropriately in the project process during the main development stage of the project. This will be documented through the meeting log and you must present your meeting log to your supervisor in order for them to sign this form. This will indicate that you have been proactive in arranging face to face tutorials (not just emails) with your supervisor and have kept him/her informed of your progress, as well as keeping an up-to-date log of meetings and progress and actions. Supervisors will not sign the form after the specified date.
Supervisor Comments.............................................................................................
Student signature........................................................ Date......................
Project tutor signature ........................................... Date......................
Stage 2: Declaration regarding origin, provenance and content of project.
To be dated and signed by you and your tutor before the project is submitted.
This declaration indicates that you and your supervisor are agreed on the originality of material used as the basis of your project. For you as the student this may include providing evidence that you have actually collected suitable data, built equipment/products yourself or sought original material from primary sources/databases. This will involve you presenting key material/evidence to your supervisor on or before the declaration is signed. The declaration is also a statement that you have not plagiarised material in any way and acknowledged all sources/contributions where possible.
Student Declaration.I declare that this assignment is all my own work, and that all other authors have been acknowledged.
Student signature: ................................................................ Date......................
Supervisor's Declaration.I declare that the primary data set of this assignment has been seen and verified.
Project supervisor signature:............................................... Date.....................
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Stage 3: Self Declaration of electronic submission to TurnitinUK
Student Declaration.I declare that an electronic version of the final copy of my project has been uploaded to TurnitinUK on the BB module site.
As a result of my electronic submission to TurnitinUK, the final Similarity Index Percentage shown on TurnitinUK for my work is __________.
Student signature: ................................................................ Date......................
This form should be presented as Appendix 1 in the final project report.
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7.2 Appendix 2: Best Odds and Markets use bet365 or Betfair
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7.3 Appendix 3: Easiest Site to use
7.4 Appendix 4: Does Site Navigation Affect Choice
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7.5 Appendix 5: £10 + Weekly Spend Current Site
7.6 Appendix 6: Betting Sites Registered With
7.7 Appendix 7: Under £2 Weekly Reason for using Site now
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7.8 Appendix 8: Follow Betting on Social Media
7.9 Appendix 9: Best way to find out about Offers
7.10 Appendix 10: Most Effective Marketing Method
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7.11 Appendix 11: Do Betting Adverts Motivate you to Bet?
7.12 Appendix 12: Paddy Power Followers who use Site.
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7.13 Appendix 13: Research Questionnaire
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7.14 Appendix 14: Focus Group Transcript
Focus Group – Transcription
Focus Group Location: 24 Wadbrough Road, Sheffield.
Cadre: Focus Group
Date: 15/4/2015
Number of Attendees: 6 (5 Participants, 1 Interviewer)
Name of Transcriber: Charlie Holmes
Number of Tapes: 1
I: Right, to start with . . . you are all going to place a bet . . . the winner of the Champions League Final . . . your betting sites have been chosen from the online market share . . . there would be top 6, but we’ve only got 5 people, so Sky Bet have been wiped out of it . . . Ok, so to start with, everyone try and get in your betting slip the winner . . . just say Barcelona to win this year’s Champions League.
P: Barca?
I: Yep.
P: Okay.
. . .
I: Then I’ll ask you individually at the end of the activity.
[Inaudible segment]
[Inaudible: 6 seconds missing]
(Short sharp laugh)
P: No problem with that one.
P: Not being funny, I can’t find it.
P: Yep, I’m done.
P: How much we staking =Cyral=?
. . . (Gasp)
P: Barcelona?
I: Yep.
P: Barcelona to win the Champions League.
P: £3.
P: 5/2 anyone beat that?
I: Yeh, I will ask you about the odds as well.
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P: I don’t know what these odds are . . . 21/10
P: . . . That’s like 2/1.
P: . . . Bear with me.
(Group laughter)
P: Who.
I: What site you on?
P: = William Hill =.
P: =William Hill’s= decent.
P: I know, I’m not though.
(Short sharp laugh)
[Inaudible: 6 seconds missing]
I: Everyone else, everyone got there?
P: Yes.
P: Yes
P: Yep.
I: . . . =Bill?=
. . . (Group laughter)
[Inaudible segment]
P: . . . See if I can beat you to it.
P: Think it’s your laptop.
…. (Short sharp laugh)
[Inaudible: 10 seconds missing]
[Inaudible segment]
. . . (Group laughter)
[Inaudible segment]
(Group laughter)
I: Right, ok . . . [Inaudible segment] . . . we’ll start with you =Mark=, you had =Paddy Power= . . . have you used =Paddy Power= before?
P: No.
I: . . . How’d you find it?
P: Very easy, coz the the, it was on the quick link coz it was Champions League, outright winner . . . pretty easy.
I: Easy done . . . =Rolz= who did you have?
P: =Betfair=.
67
I: Have you used that before?
P: Once or twice.
I: Once or twice
P: Yeh.
I: . . . Easy?
P: Errr fairly easy yeh.
I: …. So, is that your most . . . the site you use most often?
P: Hmm definitely not, no.
I: No, okay . . . =Niall= . . . who’d you have?
P: =Ladbrokes=.
I: How was it?
[Inaudible segment]
P: It was alright.
I: Have you used it before?
P: . . . Used it a couple of times, yeh.
I: . . . How have you found it the couple of times you used it before?
P: . . . Little bit slow if I’m honest
I: . . . What the site as a whole? . . . you find difficult?
P: Yeeeehhh . . . the buttons aren’t . . . all there, so . . .
I: Okay . . .
P: Errrr I had 365.
I: Yep.
P: Very annoying . . . errrr, it’s not, it don’t have it all grouped up with the main bets, it’s just got a list of every sport which I found a bit annoying . . . and it’s Soccer not Football which is also very annoying.
I: . . . So . . . (clears throat).
P: It’s not got it, normal like like, it’s not like normally you’ll have the main things, you have your Horses, your Casino’s, Football, just main things, easy click, but this is, you have to go search for it which is a bit annoying.
I: . . . So you have tried and use it before?
P: I’ve tried to use it and it infuriated me, so . . .
I: You’ve not enjoyed it?
P: It was not an enjoyable experience, no.
I: Okay . . . =Billy?=.
P: I had =William Hill=
I: . . . Have you used it before?
68
P: . . . Not to bet . . . I’ve been on the site before.
I: . . . How’d you find it?
P: . . . Errrmm . . . relatively easy.
(Group laughter)
I: . . . Okay . . . right . . . now the odds of Barcelona for each site . . . how different are they? . . . =Mark?=.
P: 11/5.
I: 11/5, right . . . =Jack?=.
P: . . . 5/2.
P: . . . 21/10.
P: 5/2.
P: 9/4.
I: . . . All around the same then . . .
P: Yeeeh.
P: I don’t know.
(Group laughter)
[Inaudible segment]
P: I was gunna say that.
(Group laughter)
I: … All around the same.
P: 5/2 is like 2/1.
I: . . . Yeh, all around the same.
P: 5/2 is like . . .
I: All around the same.
P: . . . Who’s the smallest?
[Inaudible segment]
P: 5/2’s the, 5/2’s the biggest.
P: Mines the smallest one.
I: . . . So, if, if you were to put a bet on for something like this . . . how much would you shop around? Or, or would you shop around for the best price? Or would you just, just go to the site which you use . . . most often?
P: It depends on how much you’re stakin’ . . . if it’s a small kind of stake you don’t really think about that, but if you’re puttin’ a lot of money on then you’re gunna put your research in.
I: How much . . . would you say quantifies a lot?
P: Dunno, if you’re puttin’ on more than a tenner, then you’d look to see what your best odds would be.
69
I: . . . Is that the same for everyone?
P: No.
P: Na na na.
P: I’d always go =Sky Bet= . . .
P: Yeh, I’d always go =Sky Bet=.
P: Coz I find it the easiest, coz I’ve always used it.
P: =Sky Bet= or =Coral=.
P: That’s where all my money is.
P: And I know the odds are gunna be decent.
I: What have you got to say?
P You gotta, you gotta like the first kinda thing though, is like they’re always quite similar . . . so . . . I’d probably’s just go put like 20 quid on it, so.
I: What site do you use most often?
(Short sharp laugh)
P: (Laughing) All of them.
P: (Laughing) =Sky Bet=.
(Group laughter)
I: =Sky Bet= . . . so (clears throat) . . . the reason you’ve mainly used =Sky Bet= for is because it’s the easiest one to use you find?
P: No, I used It originally because it gave you £5 free . . . and properly free, you don’t have to stake anything.
I: Yep.
P: That’s the reason I started using it, and now coz it’s the easiest the reason I carried on using it.
P: I use =William Hill= the most because . . . I used to go =William Hill= shops, and I just find it easier, y’know you just go straight to the same one, same company, not as, not as in loyalty but as in recognisable . . . and do that, that’s why, why I use =William Hill= the most.
I: So that was . . . your first choice because it was the, your shop?
P: Because it was the one I used to go to, yeh, the shop I used to go in to.
I: How much do you use other sites?
P: . . . Not that much, unless I’m puttin’ a lot of money on.
I: . . . Okay . . .
P: I agree with =Bill= . . .
I: Easy, how easy =Sky Bet= is to use?
P: The fact you get £5 at the start as well.
I: And they, they don’t do that anymore, so how, what would . . . what would sort of persuade you to join a . . .
70
P: Free money.
P: An offer.
P: Yeh.
I: Is it an offer?
P: Yeh yeh . . . it’s the best, the best offer that gets you there, and then as long as it’s easy to use . . .
P: I’ll always, I always check =Coral= coz they always do a daily offer.
I: . . . Right.
P: So I always check that one first.
P: I think, I think I’d always stick to William Hill, but if I seen a good customer offer . . . a new customer thing which I haven’t got with, I would do it just for that bet, but then I’d probably wouldn’t use it again . . . I’d just use it to . . .
P: That’s what I do . . .
I: So you’d just use it to, just one off?
P: Yeh for the one off, for the, for the, errr offer.
I: So even, even if they do the best and most regular offers that won’t . . . still necessarily be the site you use?
P: Naaa . . .
P: Na, if it’s annoying to use then no.
P: It’s, it’s one that I can errr the account that I can actually put my card details in to, and not maxed my deposit limits, so . . .
I: Yeh . . . so how much do you say you bet, you bet a week then?
P: A week?
(Short sharp laugh)
I: Yeh.
P: Errrr . . .
I: You set, do you always set a deposit limit?
P: Yeh yeh . . . Errr . . .
I: How much?
P: Errr . . . it’s just been improved to £50 a week.
(Group laughter)
P: Improved?
P: He’s got a raise.
(Group laughter)
P: Congratulations =Mark=.
P: It were, it was, errr in . . . two years ago it was £100 a day.
71
I: . . . Right.
P: That’s bullshit.
I: What was that on? . . . Was that on roulette or a mixture?
P: Yeh yeh, that was mainly roulette, mainly roulette and blackjack.
I: Do you still do that?
P: Very . . .
P: Do you want the gambling aware number now, or . . .
[Inaudible segment]
I: Do . . . do you stake more when you’re betting on sports or . . . Or, when you’re using roulette?
P: Roulette.
I: Whys that?
P: Win more . . . Coz it’s easier to win . . .
P: Win more quicker . . .
P: I think the speed of it yeh . . . the speed of roulette makes you put more money on . . . coz you can . . . when you’re football betting . . . you put your bet on, then you gotta wait however long it is and when you put a horse on, you gotta for that, whereas in roulette . . . you can press it and 15 seconds later you lost some money, but you can keep trying to win it back and win it back and back . . .
I: Right . . . and how, how many sites . . .
P: Roulette?
I: Do you do, use casino stuff on?
P: Only just one . . .
I: Just one . . . what’s that?
P: Errr . . . =William Hill=.
I: =William Hill=?
P: Yeh.
I: What about you?
P: Sky casino . . . Sky Bet it is.
I: =Rolz?=, you do a bit of casino stuff.
P: =Sky= and =William Hill=.
I: Do ya?
P: Yeh.
I: And do you do that much now?
P: Not a lot, na.
I: No . . .
72
P: It used to be in store more than online.
I: How often do you do casinos, casino stuff now? . . . you lot . . . out of you lot that do it?
P: Not that much . . . not as much as I used to.
P: Online?
I: Yeh.
P: Errrmmm . . .
P: What casino online?
I: Yeh . . . have you ever done it?
P: No . . . I’d say . . .
P: Yeh . . .
P: I feel like its rigged me online, so I don’t know . . .
P: Na, coz I use the, use the live casino’s where it’s a video, like from Lithuania.
P: . . . So yeh . . .
I: So you’d, you’d be more inclined to do it online or in the shop?
P: Oh, in the shop . . .
P: In the shop . . .
P: I’d be paralytic if I did it online.
P: Or in casino . . . i’d do it in the shop, or in the casino itself.
I: Coz, coz it’s more trustworthy?
P: Yeh . . .
P: I do it online . . .
I: You do it online?
P: I, I, i honestly think it’s a lot more trustworthy online because it’s actual live, whereas the machines just . . .
P: Yep . . .
P: Just completely . . .
P: Well the machines even say that it’s 97% innit, payout . . . so, which errr . . . I mean its 3% which you’re gunna lose instantly . . . just even if you go . . . even if you wanted it you don’t go out with it . . .
I: Yep . . .
P: Whereas like =Purky= said, on the errr . . . on the, online you can see it going round, so it’s a lot harder to be rigged, so its like . . . obviously it could be easily rigged where they put it, but its more than just you playing it . . . so I think you got a better chance, coz it’s not just you against the machine.
I: Right, so how much would you feel happy betting . . . say you walk up to a . . . in, into a shop . . . or a roulette . . .
P: Errr, if . . .
73
I: How much would you be happy staking? . . . or would it be depending on . . .
P: If I was, say I was going into a casino and I was thinking, right I’m gunna go spend my money . . . if I had the money at the time, I’d be happy with £100, I know that I’m gunna spend it there . . . if I’m in a betting, if I’m in a shop I’m less likely to do . . . I’m just gunna put a couple quid on . . .
P: Change in your pockets . . .
P: Yeh yeh . . .
I: Just, just your loose change?
P: Yeh . . . just your loose change in the shop, but if you’re going casino and you’re planning on going casino, I would just stake a certain amount.
I: So you, so you go to the shop to just . . . y’know bet and put, put your accumulator on but you see it there and you’ve got a loose . . . couple of quid . . .
P: Yep . . .
I: How many of you would put that in the roulette machine?
P: Yeh . . .
P: Not a couple of quid . . .
P: I wouldn’t.
P: I would.
P: Maybe like 50p on.
P: I, I, I, I would . . .
P: I would . . .
P: I think . . .
[Inaudible segment]
P: If I did, if I did it in the shop, I’d be convinced that . . . it were, it was rigged and I wouldn’t be winning . . . so I’d be, so I might as well throw the pound on the floor.
I: . . . But online you put, you put your accumulator on, you wouldn’t . . .
P: Yeh . . .
I: You wouldn’t verge . . . onto the casino?
P: I would if I got any money left over after a like . . .
P: Yeh . . .
P: If I’d won the bet I would with the loose change to make it round number.
P: Yeh, I’d probably do that.
I: So, so you’d say casino is more just to . . . while you’ve got gambling tendencies, it’s just, just while you’ve got an urge . . .
P: I wouldn’t . . .
I: It’s there as a quick fix?
P: I deposit personally to go on the casino’s . . .
74
I: Do ya?
P: Yeh
(Group laughter)
I: So online you go on to do what you do and that’s it?
P: Online, personally for me, is just sports betting and then casino if I’ve got the money, whereas . . .
I: Alright.
P: . . . I dunno, yeh.
I: . . . Right . . . Okay, that’s fine . . . so is . . . your most favourite thing to bet on football everyone?
P: Probably’s, yeh.
P: Mine is yeh.
P: Yes.
P: Horses.
P: Probably’s
(Short sharp laugh)
I: (Clears throat) . . . How often do you bet on horses?
P: Errr, I think it changes depending on what time of year and that.
I: Do you prefer using online compared to going in the shop?
P: No, I prefer going in the shop, I prefer writing it down . . .
I: For horses? Is that just for horses or for everything?
P: I think I prefer to go into the shop for everything personally . . . definitely more so for horses, coz I prefer writing it down on slip . . .
I: Right . . .
P: It feels . . .
I: Whys that?
P: It feels more authentic, it feels like you’ve actually put some effort into it instead of just clicking . . .
I: So . . . it enhances like the experience?
P: Yeeehh.
P: You get your money straight away.
I: Yeh, how, how much does that make a difference to you?
P: A lot.
P: A lot . . .
I: Cash in hand . . .
75
P: On a Saturday, cash . . . you want your money cash in hand, you don’t wanna wait til Monday, Tuesday to get your money in . . .
I: But, but does using E-cash, so actually not seeing you physically hand money over online, does that influence how much you bet, or does that make it easier . . .
P: Yeh . . .
I: Or does that . . .
P: Yeh yeh . . .
P: It it . . .
P: You’re you’re, much more inclined to spend more money coz you’re not actually thinking it should be . . . you think, you think like you say it’s just credit, its not actual money . . .
P: Yeh . . .
P: It’s so easy to just like deposit, literally you just type in your 3 numbers on the back and whatever you want, so you can just put in something so easy . . .
P: So you’re never gunna see your cash go.
I: Right . . .
P: If you were to go in’t shop, I’d say I’d only spend 2, 3 quid, that were literally in my pocket, whereas online you have to deposit at least a fiver, and . . .
P: Yeh . . .
P: You’re gunna spend all of it as well.
P: And you can’t withdraw anything less than a fiver as well . . .
P: Less than a tenner as well . . .
P: Yeh, a tenner . . .
P: Less than a tenner . . . so you gotta, you gotta win more than that . . .
P: You got to, you got to bet . . .
I: So, so you do it for convenience, but its more dangerous . . .
P: Yeh . . .
I: Per, you know potentially at the same time?
P: Spend more online than . . . than in the shop.
P: Yeh . . .
P: More frequent as well . . .
P: Yeh . . .
I: Yeh, ok . . .
P: Coz you can do anything (clears throat) . . . so you can put it on some stupid games in Algeria . . .
I: Yep . . .
P: Whenever you want to bet you can bet . . .
P: You can play virtual football as well . . .
76
[Inaudible segment]
P: You can do it anywhere as well . . .
P: It’s the fact that you can put in money into one account and you can do like anything on it like, all the, like all the little games and all that on it, just to see whats about . . . for like 10p and that, you just do everything don’t you . . .
P: Deal or no Deal
P: Deal or no deal (Short sharp laugh)
P: No questions
(Short sharp laugh)
P: No problem.
I: . . . So, would you . . . even, even if you had like the urge to gamble just one night you’d stick whatever the deposit limit was, then would you bet it all? Or . . .
P: Yep . . .
P: Yeh . . .
P: I’d never, I’d never walk away with money in my account with, I either just withdraw it all or lose it . . .
P: Yeh . . . I think if I put money on in the day that’s, that’s, that day the money I’m gunna spend . . . I don’t think ahh, I think I’ll save this for tomorrow.
I: So your deposit limit would last, you’d do it straight away?
P: it’d go, yeh . . .
I: You’d put it in . . .
P: I’ll put it in on that day, then I’d either win money or lose money, that’s it.
P: I can’t remember the last time I deposited money in my =Sky Bet= account.
(Short sharp laugh)
I: So . . .
P: So you’ve won a lot? . . .
(Short sharp laugh)
I: So what you do, you couldn’t do that in the shop?
P: No no no . . .
I: What you stake . . .
P: If I put a fiver on then . . .
P: They don’t let . . .
P: That’ll last me months . . .
P: They don’t allow you to give you like another 11p more on your bet . . . (Short sharp laugh)
I: No, so that’s, that’s the good thing about online, you can bet what you want . . .
P: Yeh . . .
77
P: Bet what you want and there’s more as well.
P: Whereas . . .
P: You’d be embarrassed, say like betting, betting like 10p bets, if you did that in the shop you’d be laughed out the shop . . .
P: Yeh it’s like 50p aint it? Or . . .
P: Put obscure bets on that you can’t do in the shop really.
[Inaudible: 10 seconds missing]
[Group laughter]
I: Yeh, is the, is the amount of markets available . . .
P: Yeh, I think that’s what it is that attracts you . . .
P: I, I, I can bet on Australian Rules Football now, it’s quite easy . . . it’s just though . . .
I: And would you say it’s all mainly the same for every site or? . . .
P: Yeh . . .
I: Some sites . . .
P: They all do everything don’t they . . .
P: =Bet 365= have a lot more in-play markets . . .
I: More in-play . . .
P: As in like . . . not . . .
P: You mean everything . . .
P: Like 0.5 but like everything possible . . .
I: So would you say . . .
P: Asian handicaps and all that kind of stuff which you can’t find in the shop . . .
I: Do you go into that much detail . . . or use those sorts of markets?
P: Not really, but it’s there if you need it . . .
P: I think . . . when you bet in them kinds of markets you’ve either got to hear it through like the group, or hear someone say it’s like a good price for what you get or like when you see an offer or something . . .
P: Yeh . . .
P: Whereas outright it’s probably more.
P: The only time I’ll bet in play is like one of the offers comes up on adverts.
I: Does that, how much does that influence . . .
P: Ah yeh, all the time, everytime . . .
P: Some of them you look at it and sometimes you think ahhh, I’m gunna have to do that now.
P: It’s through notifications on your phone as well . . . like they give you a price . . .
I: How often do you get those . . .
78
P: Every, every game . . .
P: Yeh, =Sky Bet= are quite good at that as well . . .
P: Every major sporting event you get one, and you’re normally . . .
P: It’s, It’s the . . .
P: Normally looking like a good price and you, you’d be more inclined to put something on.
P: With =Sky Bet= it’s usually every half time with a game they’re covering, you get one . . .
P: Yep . . .
P: It’s like, I didn’t get one last night about Real Madrid, Atletico . . .
P: Yeh, yeh and they know . . .
P: I got one before . . .
P: They know you’re not doing anything at half time . . . and you’re watching the game, so it’s like something they’re tryin’ to do to make you more interested in the game . . .
P: Especially if you’ve lost your first bet already . . .
P: Yeh . . .
P: Like first goalscorer, and then . . .
P: Yeh, it’s like trying to get your money back . . .
P: So you’d go and try and do it again . . . at half time.
I: So, if, if you see an offer, say Bet 365 at half time . . . would you be inclined to use them or still, you’d still just say, ‘oh that’s a good offer, but I’ll still go and do that on my website’?
P: I wouldn’t make an account just to do it.
P: No I wouldn’t.
P: . . . Or I wouldn’t like deposit a fiver just because . . . of that . . .
P: It’s got a good offer.
P: I, I, I would consider doing that . . .
P: But the again like I said before, if it’s got a good offer where . . . you don’t have to deposit . . .
I: Yeh . . .
P: I would use that site . . . like if, if =Paddy Power= or someone, turned up and said we’re doing £5 free, like =Sky Bet= did, I’d go to =Paddy Power= and I wouldn’t go back to =Sky Bet=.
P: If you go to =Paddy Power= and you bet a fiver, you get £20 free . . .
P: Yeh same.
P: . . . I don’t wanna pay anything . . . do you know what I mean . . .
P: Then you get three more fivers don’t you.
(Group laughter)
I: . . . So does watching, watching live sport, does that give you an urge to gamble?
P: Yeh . . .
79
P: Yeh, if it’s boring as well it makes it a bit more interesting.
P: Yeh if it’s boring yeh . . .
P: I think I’ll watch other sports other than the stuff I’m interested in, just so I can have a bet, so like the Golf, I’m not that interested in, but if I put a bet on just so I got something to do . . .
P: Yeh, yeh I mean I don’t really bet that much, but when you watch it, you see, you see the long prices and people are telling you how, how that it’s a good price for someone you end up putting a bet on.
P: Uh, uh . . .
I: So . . . word of mouth . . .
P: Yeh, like a Tennis accumulator . . . I’ve done some of them.
(Short sharp laugh)
P: But even on commentary, they’re even like ahhh, this guys got such long odds . . .
I: Yep . . .
P: And, you get experts telling you that you should put a bet on pretty much . . .
P: Yeh . . .
P: Especially when you’re walking to the shop, on the radio, when they come up or the radio tell you the offers, they always go oh, I can’t believe it’s this price . . . and obviously gets you, or they purposely say so obviously you’ll put bet on . . .
I: Yeh . . .
P: And it just works everytime.
I: . . . So would you say . . . while watching a sport event, that is the best time to market a . . .
P: Before . . .
I: Before? . . .
P: Yeh, before, before the event you know . . . it makes you excited for it, you’ve got a bet on it, you know it’s going to be interesting.
I: How would you be most likely to be made aware from sites that you use?
P: I think social media, Twitter’s a big thing . . .
P: Twitter . . .
P: It’s just full of offers and this and that and from all different betting things . . .
P: Notifications . . .
P: Notifications . . .
P: =Paddy Power= is quite a big one for social media, I think that, I think they tweet quite a lot . . . they do . . .
P: Funny as well . . .
P: Yeh, the first thing that comes up with =PaddyPower= on it, is always quite funny.
I: Is it, is it just for the offer, or is it, is it more like you say . . . because it’s funny?
P: Na . . .
80
P: Yeeh . . .
P: I follow =Paddy Power= but I don’t have an account with them.
I: No . . .
P: I think, I think they’re very recognisable . . . I’d, I’d read, skip through things on Twitter, but I wouldn’t skip through =Paddy Power’s= tweets . . .
I: So customer sort of, sort of customer . . . friendliness or if you like . . .
P: Yeh yeh . . .
I: That makes a big difference?
P: Yeh yeh . . . relatable.
I: You all follow . . . betting sites on social media?
P: Yeh . . .
P: Yep . . .
P: I don’t follow =Sky Bet= . . .
P: I follow quite a few . . .
P: I don’t, coz I don’t want them to tempt me into betting even more than I do . . .
I: Right . . . so you all . . .
P: I think if I followed them on Twitter I’d be tempted to bet even more.
P: I, I follow like all the sites and then I follow all the tips pages coz then, and then all the pages that gives you the offer . . .
I: So you try and get the biggest general . . .
P: Yeh . . .
I: Almost like shopping around for . . .
P: Yeh, yeh on Facebook and Twitter I’ve got quite a few of them.
I: Yeh yeh . . . What you said =Niall=, you don’t follow =Sky Bet= but you use =Sky Bet=?
P: Oh yeh, they just don’t tweet anything that’s relevant to me, so I don’t need to . . .
I: Right, so how do you hear offers? Through like email or anything like that?
P: Yeh . . . and I get a notification.
(Short sharp laugh)
I: And how much attention do you pay to them?
P: . . . Depends . . . if I’m gunna bet on it anyway then I’ll probably have a look at it.
I: So they won’t influence you . . .
P: Probably not . . .
I: If you hadn’t intended to bet?
P: No.
I: It wouldn’t influence you if you get an email with a good offer?
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P: Not really, no.
P: Depends . . .
P: =Coral= influences me coz they’ve put £20 max, which makes me feel like . . . they’re saying it’s a max . . .
P: It’s gunna win . . .
P: It’s like gunna win, so I always put a tenner on it just go halves with that.
I: Are you always open to betting then? Is that what you’re saying?
(Short sharp laugh)
P: With a good offer on =Coral= yeh . . . as in they do daily ones, and like but I did one last night.
I: So there’s, there’s no . . . so any, anytime to market at you, as long as it’s got the, a good offer?
P: But often . . .
I: You’re likely to . . .
P: A notification will come through, like an hour before kick off or . . .
I: Right . . . Will you be looking out for these? Or . . .
P: Yeh . . . I do look out for them . . .
I: You’ll go searching for them?
P: But I always look at =Coral= everyday, =Coral= everyday . . .
I: So you’ll go directly to the website?
P: Yeh . . .
I: Like social media, do you check social media? Or just go straight to the website?
P: Social media, I don’t think I follow =Coral=, it’s only like =Bet 365= and =Sky Bet= . . .
I: Why’s that?
P: Just don’t know . . . just occurred.
I: Right . . .Ok . . . Ummm I’m just trying to think if there anything else I need to ask you (Sigh) . . .
P: Na, betting you can just do it all the time, easy as that.
P: I think social media is the biggest influence on me, with errr . . . betting online . . . not for betting, but for online . . .
I: That’s the first place you’ll check?
P: It’s not like I check it . . . it, it makes me bet online . . . I can go to the shop but if I’ve seen an offer or I seen something about it on a website then I’m much more inclined to do it online.
I: So you won’t go searching for it?
P: No, I won’t go searching, but when I go on the social media, which would be quite regular I suppose . . .
I: Right, ok . . .
P: That’s what it does.
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I: And . . .
P: =Monster= betting tips is a good page on Twitter, it tells you them all.
P: You can get an app now as well where if you put your bet in, it gets all the sites up and tells you the best odds, like . . .
P: =Acca Tracker= does that . . .
P: Yeh, that’s what I’m on about.
I: When you bet on, like Football and that, do you look for best prices?
P: No.
P: No, not with accumulators, like I say unless it’s like, unless you’re going for bet like for someone to win the league, like a long term bet, with a higher stake, then you would look into that . . .
I: Yep . . .
P: But if it’s just an accumulator then I wouldn’t even look twice.
I: Yeh, right ok . . . And has talking about this, made you . . .
P: Wanna gamble on tonight?
I: Yeh . . .
P: Yeh, I’ve already got =Betfair= open now, about to put some money on.
I: Right, so . . .
P: I was, I was very . . .
P: I haven’t got an urge to bet, I’ll bet when I’m told to bet by my notifications
[Inaudible segment]
[Group laughter]
P: Time to bet.
[Group laughter]
[Inaudible: 6 seconds missing]
P: I was tempted to go on =Sky Vegas= there, while you were talking through that bit there.
I: Would you say, say being surrounding by, being in the company of other people who . . .
P: I wouldn’t class him as another bettor.
(Short sharp laugh)
P: It’s a conversation starter as well, I think it’s a culture more now, it’s something to say . . .
P: Yep, if you, if you, especially with someone who you’re not that comfortable with or don’t talk to that much you can still talk about betting.
I: It’s a kind of, clear common ground.
P: Yep.
[Inaudible segment]
[Group laughter]
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[Inaudible: 6 seconds missing]
I: Ok . . . I think that’s everything . . .
P: Pleasure.
I: Thanks very much guys.
End of tape.
7.15 Appendix 15: Daniel Pyle E-mail
Hi Charlie
Sorry for the needlessly long email, I can rant a bit at times.
In terms of your data, I'm not sure if I analyse it as well, so you might need to check with
Fiona. But to be fair it looks pretty comprehensive and I don't think I'd have time to go
through it in detail.
But I've had a look through and the first thing I'd say is that, you use bars charts quite a bit
so it might be worth thinking if you can present the data in any other ways or format.
Think you've mentioned it but I'm not sure if 75 responses is enough to draw any major
conclusions, so it might be worth including a considerations section with challenges you've
faced, but the age group you've collected data from represents the main target market for
betting companies, so any conclusions you make are realistic assumptions.
In regards to your questions:-
In terms of Ray's In-Play Ads, this has a major impact in generating new customers
especially with the timing of the ads (e.g. half time of football matches) and it's highly
focused directly on their target market and level of visibility it provides is significant. You can
also take into account Ray himself, who could be categorised as "Normal guy" which once
again appeals to the desired audience. You've also the YouTube ads which adds more
value. Especially as I heard recently there's just as much, if not more searches on YouTube
per day than Google,but I wouldn't quote me on that.
bet365 places a large emphasis on In -Play, alongside with the cash out facility. Cash out is
a huge factor (I'm go as far to say, one the biggest factors) for generating and retaining
customers. So by having Ray promote two of the most important features for customers at
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times when the target market is watching, it's a major factor for generating customers and
raising the awareness of the organisation.
From an organisation point of view, betting companies want to drive customers to the In-Play
service because there's more revenue and margin. What I mean by this is, the original pre
match odds of a bet will have a margin built into it and then In-Play for the same bet there's
another margin built into the price that is offered. So you can make a margin on the same
bet more than once. (Sorry if that doesn't make sense it's hard to explain on email)
bet365 don't operate any stores at all, but from my understanding most stores are struggling.
Which coincides with corals new promotion of allowing customers to collect cash in stores
when winning they've generated online, so a argument could be made it's actually the other
way round for companies who still operate stores.
But overall, I'd have to say there's definitely a marketing push within the Industry to migrate
customers to online because of the financial costs of operating stores. Labour and premises
are always going to be big costs for companies so they will definitely be looking to save on
costs by moving customers online.
It's not direct collation but at bet365 we offered telephone only customers a bonus to create
an account online, so that highlights the emphasis to move customers online. In terms of
regulatory bodies they focus on ensuring that companies don't encourage customers to
gamble beyond their means and that there's measures in place to control gambling. But for
moving the same customers online, that's more about business procedures.
Hope this helps and good luck.
If you see Eddie and Marc Taylor tell them I said hello
Regards
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