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Explanations of service gratuities and tipping: Evidence from individual differences in tipping motivations and tendencies

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  • Lynn, Michael

Abstract

Consumers often give service workers gifts of money in the form of tips. Desires to help servers, reward service, buy future service, buy social status/esteem, avoid social sanctions, and fulfill internalized social obligations have all been proposed as possible explanations for this behavior, but surprisingly little research has documented the effects of these desires/motives. Results of an online survey indicate that self-reported individual differences in each of these motives for tipping predict the likelihood of tipping, uncertainty about the general likelihood of tipping, and/or tip sizes among those who tip. Results also indicate that the effects of future-service and duty motives on tipping likelihood vary across service occupations and that duty motives have opposite effects on the likelihood of tipping and on the size of tip left by those who do tip – increasing the former while decreasing the latter. Finally, results indicate that reward, altruistic, and esteem motives for tipping are positively related to attitude toward tipping while avoidance and duty motives for tipping are negatively related to attitude toward tipping. The theoretical and practical implications of these findings are discussed along with directions for future research.

Suggested Citation

  • Lynn, Michael, 2015. "Explanations of service gratuities and tipping: Evidence from individual differences in tipping motivations and tendencies," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 55(C), pages 65-71.
  • Handle: RePEc:eee:soceco:v:55:y:2015:i:c:p:65-71
    DOI: 10.1016/j.socec.2015.01.002
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Regner, Tobias, 2014. "Social preferences? Google Answers!," Games and Economic Behavior, Elsevier, vol. 85(C), pages 188-209.
    4. R. Keith Schwer & Rennae Daneshvary, 2000. "Tipping participation and expenditures in beauty salons," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 2023-2031.
    5. Ofer Azar, 2005. "Who do we tip and why? An empirical investigation," Applied Economics, Taylor & Francis Journals, vol. 37(16), pages 1871-1879.
    6. Bodvarsson, Orn B. & Gibson, William A., 1994. "Gratuities and customer appraisal of service: Evidence from Minesota restaurants," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 23(3), pages 287-302.
    7. Frank, Robert H, 1987. "If Homo Economicus Could Choose His Own Utility Function, Would He Want One with a Conscience?," American Economic Review, American Economic Association, vol. 77(4), pages 593-604, September.
    8. Lynn, Michael & Grassman, Andrea, 1990. "Restaurant tipping: an examination of three 'rational' explanations," Journal of Economic Psychology, Elsevier, vol. 11(2), pages 169-181, June.
    9. Ofer H. Azar & Yossi Tobol, 2008. "Tipping as a Strategic Investment in Service Quality: An Optimal-Control Analysis of Repeated Interactions in the Service Industry," Southern Economic Journal, John Wiley & Sons, vol. 75(1), pages 246-260, July.
    10. Azar Ofer H, 2008. "Strategic Behavior and Social Norms in Tipped Service Industries," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-18, March.
    11. Angela Y. Lee & Punam Anand Keller & Brian Sternthal, 2010. "Value from Regulatory Construal Fit: The Persuasive Impact of Fit between Consumer Goals and Message Concreteness," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(5), pages 735-747, February.
    12. 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.
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    Cited by:

    1. Lynn, Michael, 2016. "Why are we more likely to tip some service occupations than others? Theory, evidence, and implications," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 134-150.
    2. Ge, Qi, 2018. "Sports sentiment and tipping behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 95-113.
    3. Lynn, Michael, 2021. "The effects of injunctive and descriptive tipping norms on tipping behavior and motives," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    4. Conlisk, Sarah, 2022. "Tipping in crises: Evidence from Chicago taxi passengers during COVID-19," Journal of Economic Psychology, Elsevier, vol. 89(C).
    5. Lynn, Michael, 2016. "Motivations for tipping: How they differ across more and less frequently tipped services," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 65(C), pages 38-48.
    6. Weiqiang Tan & Jian Zhang, 2021. "Good Days, Bad Days: Stock Market Fluctuation and Taxi Tipping Decisions," Management Science, INFORMS, vol. 67(6), pages 3965-3984, June.
    7. Elif Aydin, Asli & Acun, Yüksel, 2019. "An investigation of tipping behavior as a major component in service economy: The case of taxi tipping," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 114-120.
    8. Conlisk, Sarah, 2021. "Tipping in Crises: Evidence from Chicago Taxi Passengers during COVID-19," OSF Preprints brvhp, Center for Open Science.
    9. Lynn, Michael, 2021. "The effects of occupational characteristics on the motives underlying tipping of different occupations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    10. Damon Alexander & Christopher Boone & Michael Lynnb, 2021. "The Effects of Tip Recommendations on Customer Tipping, Satisfaction, Repatronage, and Spending," Management Science, INFORMS, vol. 67(1), pages 146-165, January.
    11. Lynn, Michael, 2018. "How motivations for tipping vary with occupational differences in descriptive tipping norms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 1-10.

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