"Duplication of Purchase Law in the gaming entertainment industry—A transnational investigation"

"Duplication of Purchase Law in the gaming entertainment industry—A transnational investigation"

The Duplication of Purchase Law is a concept that explores the relationship between duplicated purchases of competitive or complementary brands and their market shares. This law has been found to apply consistently across different time periods and nations. In fact, the study reveals that the duplications of games played are highly correlated to games' penetration rates, leading to a significant increase in gross gambling revenue.

For example, in 2009 alone, the gaming entertainment industry generated approximately US$89 billion in gross gambling revenue (The United States Census Bureau, 2012). Similarly, Australia recorded a total gambling revenue of over US$15 billion in 2008-09 (Productivity Commission, 2010), while Macao's gross casino revenue reached an astounding US$33.5 billion in 2011 (Gaming Inspection and Coordination Bureau, 2012). These figures highlight the substantial economic impact of the gaming entertainment industry.

While the majority of studies support the Duplication of Purchase Law, there are exceptions. For instance, Lam (2006) found that gambling purchases in the United States followed a regular pattern of cross-buying. However, when considering consumers in aggregate, many markets adhere to these empirical "marketing laws" (Ehrenberg, 1959).

According to Uncles et al. (1995), the key factor influencing the purchase duplication between two brands is the penetration of each brand. This regularity is commonly referred to as the Duplication of Purchase Law. The study suggests that this law also applies to gambling purchases in various jurisdictions, including the United States, Australia, and Macao.

The transnational investigation further reveals that the gaming entertainment industry experiences consistent adherence to the Duplication of Purchase Law. This finding aligns with the consumption patterns observed in many other consumer product markets. It highlights the importance of understanding and leveraging the relationship between duplicated purchases and market shares in the gaming entertainment industry.

Based on the insights gained from this investigation, here are three actionable pieces of advice for businesses operating in the gaming entertainment industry:

1. Analyze and leverage the penetration rates of competing brands: Understanding the penetration rates of different brands within the market can provide valuable insights into the potential for duplicated purchases. By identifying which brands have higher penetration rates, businesses can strategically position themselves to capture a larger market share and increase their gross gambling revenue.

2. Foster collaboration and partnerships: Given the correlation between duplicated purchases and market shares, businesses should consider collaborating with complementary brands to create a more comprehensive gaming experience for consumers. By offering a variety of games that cater to different preferences, businesses can increase the likelihood of duplicated purchases and generate greater revenue.

3. Continuously monitor and adapt strategies: The gaming entertainment industry is dynamic and constantly evolving. To stay competitive, businesses must regularly monitor market trends and consumer preferences. By adapting their strategies to align with changing consumer demands, businesses can maintain or increase their market share and revenue.

In conclusion, the Duplication of Purchase Law has proven to be a valuable concept in understanding the relationship between duplicated purchases and market shares in the gaming entertainment industry. By analyzing and leveraging penetration rates, fostering collaboration, and continuously adapting strategies, businesses can optimize their market position and increase their gross gambling revenue. As the industry continues to grow, it is crucial for businesses to stay informed and apply these insights to drive their success.