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To tip or not to tip?: Explaining tipping behavior in restaurants with service-inclusive pricing
Univ Appl Sci & Arts Western Switzerland, Switzerland.
Linnaeus University, School of Business and Economics, Department of Marketing and Tourism Studies (MTS). Western Norway Res Inst, Norway.ORCID iD: 0000-0003-0505-9207
Univ Appl Sci & Arts Western Switzerland, Switzerland.
Aix Marseille Univ, France.
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2024 (English)In: International Journal of Hospitality Management, ISSN 0278-4319, E-ISSN 1873-4693, Vol. 117, article id 103640Article in journal (Refereed) Published
Abstract [en]

Tipping behavior is a vital way for waiting staff to enhance their wages, and for managers to monitor guest satisfaction. Despite its importance, there is not yet an established consensus on reasons why people tip. Our lack of understanding about tipping behavior is exacerbated by a strong reliance on studies conducted in countries that have a system of voluntary tipping (e.g., the United States). The study aims therefore at expanding our understanding of tipping behavior beyond voluntary tipping countries and more specifically explaining tipping behavior under service-inclusive pricing. Data obtained from 1458 guests in five European countries show that income and payment method are the strongest predictors of customers' decision to tip, whereas bill size is the most robust predictor of tip amount. Results advance knowledge by suggesting that social norm theory plays a major role to understand tipping behavior in service-inclusive pricing.

Place, publisher, year, edition, pages
Elsevier, 2024. Vol. 117, article id 103640
Keywords [en]
Tipping behavior, Service-inclusive pricing, Service quality, Equity theory, Social norms, Payment method
National Category
Economics and Business
Research subject
Tourism
Identifiers
URN: urn:nbn:se:lnu:diva-126767DOI: 10.1016/j.ijhm.2023.103640ISI: 001134355800001Scopus ID: 2-s2.0-85179075304OAI: oai:DiVA.org:lnu-126767DiVA, id: diva2:1828186
Available from: 2024-01-16 Created: 2024-01-16 Last updated: 2024-03-13Bibliographically approved

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Gössling, Stefan

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