Who uses tips as a reward for service and when? An examination of potential moderators of the service–tipping relationship
AbstractConsumers in many countries often give voluntary payments of money (tips) to the workers who have served them. These tips are supposed to be a reward for service and research indicates that they do increase with customers’ perceptions of service quality. This paper contributes to the service–tipping literature by examining numerous potential moderators of this relationship in two studies. Results indicate that the service–tipping relationship is robust across meal type, day of week, sex and race of server as well as customers’ alcohol consumption, education, income, race, worship frequency, and hospitality work experience, but that it is stronger for older consumers than for younger ones and for parties with large bills than for parties with smaller bills. The practical and theoretical implications of these and other findings are discussed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Psychology.
Volume (Year): 33 (2012)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/joep
Tipping; Service; Relative thinking; Social norms; Service industry;
Find related papers by JEL classification:
- M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General
- M50 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - General
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- D10 - Microeconomics - - Household Behavior - - - General
- L80 - Industrial Organization - - Industry Studies: Services - - - General
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Dickinson & J. Tiefenthaler, .
"What is fair? Experimental evidence,"
2000-04, Utah State University, Department of Economics.
- Garbarino, Ellen C & Edell, Julie A, 1997. " Cognitive Effort, Affect, and Choice," Journal of Consumer Research, University of Chicago Press, vol. 24(2), pages 147-58, September.
- Ofer H. Azar, 2004.
"Optimal Monitoring with External Incentives: The Case of Tipping,"
Southern Economic Journal,
Southern Economic Association, vol. 71(1), pages 170-181, July.
- Ofer H. Azar, 2003. "Optimal Monitoring with External Incentives: The Case of Tipping," Industrial Organization 0312004, EconWPA.
- Ofer H. Azar, 2007. "Do people tip strategically, to improve future service? Theory and evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 515-527, May.
- Ofer Azar, 2009.
"Incentives and service quality in the restaurant industry: the tipping-service puzzle,"
Taylor & Francis Journals, vol. 41(15), pages 1917-1927.
- Azar, Ofer H., 2005. "Incentives and Service Quality in the Restaurant Industry: The Tipping – Service Puzzle," MPRA Paper 4457, University Library of Munich, Germany, revised 2006.
- Lynn, Michael & McCall, Michael, 2000. "Gratitude and gratuity: a meta-analysis of research on the service-tipping relationship," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(2), pages 203-214.
- Saunders, Stephen G. & Lynn, Michael, 2010. "Why tip? An empirical test of motivations for tipping car guards," Journal of Economic Psychology, Elsevier, vol. 31(1), pages 106-113, February.
- Azar, Ofer H., 2011. "Business strategy and the social norm of tipping," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 515-525, June.
- Azar, Ofer H., 2011. "Do people think about absolute or relative price differences when choosing between substitute goods?," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 450-457, June.
- Azar, Ofer H., 2007.
"Relative thinking theory,"
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics),
Elsevier, vol. 36(1), pages 1-14, February.
- Ofer H. Azar, 2003. "The implications of tipping for economics and management," Others 0309002, EconWPA.
- Conlin, Michael & Lynn, Michael & O'Donoghue, Ted, 2003. "The norm of restaurant tipping," Journal of Economic Behavior & Organization, Elsevier, vol. 52(3), pages 297-321, November.
- Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-41, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.