Tipping as risk sharing

Holland, Steven J.

doi:10.1016/j.socec.2009.02.001

Cited by 13 publications

(11 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Taking an even broader view, occupational differences in tipping and their implications for tipping policies represent just one of many tipping related topics of relevance to economists. Also relevant to economists are the effects on tipping of variables such as consumer personality and/or motivation (Lynn, 2015b), new technologies and/or payment methods (Haggag and Paci, 2014), and national identity, culture and/or values (Lynn and Starbuck, 2015) as well as tipping's effects on consumers, employees, sales, and/or profits as a form of buyer monitoring (Jacob and Page, 1980), conspicuous consumption (Lynn, 1997), voluntary pricing (Natter and Kaufmann, 2015), price partitioning (Lynn and Wang, 2013), price discrimination (Schwartz, 1997), service-guarantee/risk-reducer (Holland, 2009), employee incentive/reward (Azar, 2004), and feedback about consumer satisfaction (Voss et.al., 2004) as well as its effects on economic-efficiency (Conlin et.al., 2002) and socialwelfare (Azar, 2005b). Some research investigating these aspects of tipping has been conducted (see cited papers above), but much more is needed.…”

Section: Future Researchmentioning

confidence: 99%

Why are we more likely to tip some service occupations than others? Theory, evidence, and implications

Lynn

2016

Journal of Economic Psychology

View full text Add to dashboard Cite

Ideas about why consumers tip some service occupations more often than others are tested using occupation scores derived from online ratings of 122 service occupations. Results indicate that U.S. consumers are more likely to tip occupations for which (i) workers' performances can be more easily evaluated by consumers than by managers, (ii) workers provide customized service, (iii) workers' income, skill and needed judgment are low, and (iv) workers are less happy than customers during the service encounter. Occupations with greater frequency of customer patronage and/or greater likelihood of encountering the same service provider on multiple service occasions are not more likely than other occupations to be tipped. These findings support some and disconfirm other expectations derived from a theory that occupational differences in tipping are attributable to occupation characteristics that more strongly/consistently evoke motives for tipping. They also identify types of services for which counternormative tipping policies are more or less likely to be successful and suggest sources of resistance that must be overcome if those policies are to succeed.

show abstract

Section: Future Researchmentioning

confidence: 99%

Why are we more likely to tip some service occupations than others? Theory, evidence, and implications

Lynn

2016

Journal of Economic Psychology

View full text Add to dashboard Cite

show abstract

“…As a voluntary, after-the-fact economic transaction, tipping brings substantial additional income to frontline employees (Bodvarsson et al, 2003). In the US, tips make up over half of many restaurant employees' incomes representing over $40 billion per year (Azar and Yossi, 2008;Holland, 2009). In some regions such as Southern France, tipping is the sole source of the server's income (Mealey, 2010).…”

Section: Introductionmentioning

confidence: 99%

“…According to prior research, customers' tipping behaviors are mainly driven by social norms, reciprocity concerns and the expectation for a future service interaction (Bodvarsson and Gibson, 1997). However, from a server's perspective, a more interesting question is what tip-collecting strategies are most effective, as customer tips make up a significant portion of servers' overall income (Azar and Yossi, 2008;Holland, 2009;Mealey, 2010). Yet, only a handful of previous studies have addressed this research question (Davis et al, 1998;Garrity and Degelman, 1990;Guéguen and Jacob, 2005;Lynn and Mynier, 1993).…”

Section: Introductionmentioning

confidence: 99%

Not all smiles are created equal

Bujisic

Mattila

et al. 2014

International Journal of Contemporary Hospitality Management

View full text Add to dashboard Cite

Purpose -While a layman's theory supports the view that "a smile goes a long way," the authors argue that "not all smiles are created equal" in the sense that the server's smiles need to be genuine and authentic, in particular when the customer has a relationship with the server. The purpose of this study is to test such hypotheses. Design/methodology/approach -A 2 (display authenticity: authentic vs inauthentic) by 2 (state of service relationship: existing service relationship vs no service relationship) experiment was used to test the proposed hypotheses. In total, 768 surveys were distributed and 278 responses were received. Two-way ANOVA analyses were deployed. Findings -Data collected from customers reveal that authentic smiles have a direct positive impact on customers' willingness to tip. Further, such an effect is even stronger when the customer has an existing relationship with the server. Research limitations/implications -Servers should receive appropriate training regarding "deep acting" techniques. The most important limitation is the use of written scenarios as stimuli. Practical implications -Showing an authentic smile can be an effective tip-collecting strategy. Employees who are in contact with guests and customers should not only be instructed to provide service with a smile but should also be advised to make that smile appear authentic. Therefore, appropriate training of frontline employees, regarding authenticity of smiles, could be beneficial both for the company and for the employees themselves. Originality/value -No research has been done investigating whether authentic smiles generate larger tips and if so, whether any boundary conditions exist for such effects.

show abstract

“…However, they also highlight the incompleteness of Lynn's proto-theory, because his three psychological reasons for tipping -liking of tipping, felt obligation to tip, and social pressures to tip -do not appear to explain national psychoticism and neuroticism effects on tipping customs. Numerous other reasons for tipping have been discussed in the tipping literature -e.g., to reward service (Azar, 2005;Lynn and McCall, 2000), to gain status (Shamir, 1984), to reduce server envy (Foster, 1972), to help servers (Azar, 2005;Saunders and Lynn, 2010), and to reduce uncertainty about the dining experience (Holland, 2009) -and they, along with psychological impediments to tipping, need to be incorporated into a more complete theory about the origins of tipping norms and the determinants of cross-cultural differences in those norms. Hopefully, this paper will encourage more cross-cultural researchers to undertake this and related worked aimed at increasing our understanding of this varied and economically important social custom.…”

Section: Discussionmentioning

confidence: 99%

“…Thus, future researchers need to look beyond these potential mediators for other potential explanations of national psychoticism and neuroticism effects on tipping customs. For example, neuroticism is strongly related to uncertainty avoidance at both the individual and national levels of analysis (Hirsh and Inzlicht, 2008;Hofstede, 2001) and scholars have theorized that tipping is a way that consumers can shift the risk associated with uncertain food and service quality to the waiter (Holland, 2009), so one possibility is that national neuroticism increases the prevalence of tipping through its effects on uncertainty avoidance.…”

Section: Theoretical Implicationsmentioning

confidence: 99%