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Tipping and service quality: results from a large database

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  • Peter Kerr
  • Bruce Domazlicky

Abstract

Tipping is a big business in the United States economy. We use a large data base from a restaurant delivery service to determine if the quality of service, as measured by the delivery time, is a significant determinant of the percentage tip by the customer. After controlling for the demographic characteristics, the location and income of the customer as well as the payment method, we find that the percentage tip decreases by 0.12% for every minute of delivery time. Similar to other studies we find that minorities and the elderly tend to tip smaller amounts than do other groups.

Suggested Citation

  • Peter Kerr & Bruce Domazlicky, 2009. "Tipping and service quality: results from a large database," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1505-1510.
  • Handle: RePEc:taf:apeclt:v:16:y:2009:i:15:p:1505-1510
    DOI: 10.1080/13504850701578827
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    References listed on IDEAS

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    1. 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.
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    5. Azar, Ofer H., 2004. "What sustains social norms and how they evolve?: The case of tipping," Journal of Economic Behavior & Organization, Elsevier, vol. 54(1), pages 49-64, May.
    6. Lynn, Michael & Zinkhan, George M & Harris, Judy, 1993. "Consumer Tipping: A Cross-Country Study," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(3), pages 478-488, December.
    7. 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. ChihChien Chen & YangSu Chen, 2017. "The impacts of different types of cuisines and restaurants on gratuities," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(2), pages 154-173, April.
    2. Lynn, Michael, 2015. "Service gratuities and tipping: A motivational framework," Journal of Economic Psychology, Elsevier, vol. 46(C), pages 74-88.
    3. Natter, Martin & Kaufmann, Katharina, 2015. "Voluntary market payments: Underlying motives, success drivers and success potentials," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 149-157.

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