“Tipping Required”: Development of a Model to Understand Customer Reactions to Non-Voluntary Tipping Systems

This paper examines customer response to non-voluntary tipping systems as an emerging trend in the servicescape. A non-voluntary tipping system is a form of service inclusive pricing (e.g., increasing menu prices, automatically charging a percentage of tip on the final bill regardless of table size). Across four experiments, results suggest that non-voluntary tipping leads to higher customer anger than voluntary tipping, which leads to lower return intentions. The results also show a larger difference in customer response (customer anger, return intentions) to non-voluntary and voluntary tipping systems under high service quality than low service quality. The mediating role of the components of self-determination theory (autonomy, relatedness, competence) is discussed

The Role of Blocked Gratitude in Non-Voluntary Tipping

Purpose: Non-voluntary tipping (e.g., automatic gratuity) has received growing attention in the service industry. Existing research suggests customers respond unfavorably to non-voluntary tipping, yet little research has examined why. The current studies address this question, with particular interest in response to non-voluntary tipping under high quality service. Design/methodology/approach: Two scenario-based experiments tested the proposed hypotheses in between-participants design using ANOVA, hierarchical regression, and PROCESS. Findings: Study 1 showed that non-voluntary tipping resulted in higher negative emotions, which led to lower return intentions. Surprisingly, the negative effect of non-voluntary tipping was as strong (or stronger) under high (vs. low) quality service. To understand this counterintuitive effect, study 2 developed and tested two competing process models (i.e., blocked vengeance vs. blocked gratitude). Supporting the blocked gratitude model, results revealed that non-voluntary tipping hinders customers’ ability to reward service employees, undermining positive emotions, and lowering return intentions. Research limitations/implications: Current work was conducted in two settings using two scenario-based experiments. Hence, additional settings with non-scenario-based studies are encouraged. Practical implications: The present work cautions managers considering a move to non-voluntary tipping to be aware of its negative effects, especially when the service quality is high. The blocked gratitude model suggests that managers should clarify methods available for customers who wish to reward good service. Originality/value: This paper is the first to examine customer response to non-voluntary tipping under different levels of service quality, and the underlying emotional mechanisms

Glamping after the Coronavirus Pandemic

Glamping is an increasingly popular and accessible modern form of camping. To address current and future impacts of COVID-19 on glamping, 2,926 active leisure travelers in the US and Canada were surveyed. Respondents were asked about post-COVID-19 glamping trip plans and hotel/resort trip plans for comparison. Independent variables of interest include 2019 accommodation experiences, 2020 accommodation plans prior to COVID-19, and socio-demographics. Results indicate more active leisure travelers have plans to take glamping trips (45.9%) after COVID-19 when permissible than hotel/resort trips (24.7%). The results highlight that the broad accessibility of glamping make it a viable leisure travel alternative during and after the pandemic

Exploring Donation and Purchase Intentions to Corporate Owned vs. Corporate Sponsored Foundations

This study examines the donation intentions and purchase likelihood toward corporate-owned and corporate-sponsored foundations. A cross-sectional sample of Amazon’s MTurk respondents is obtained. Results of the experiment indicate that relative to foundations sponsored by a corporation, corporate foundations are perceived to be more trustworthy and have a greater perceived impact on a cause, which leads to higher purchase intentions. Additionally, donation intentions to foundations are higher among the corporate foundations because of perceived impact. Implications of these results are discussed from both practical and theoretical perspectives

The Effect of eWOM from Identity and Non-Identity Social Media on Movie Sales.

Social media platforms differ in the extent to which users reveal their identities, as well as users\u27 ability to detect others\u27 identities, both of which could lead to differential effects of social media generated word-of-mouth (eWOM) on actual consumer behavioral responses. Based on prior research on social identification, and relationship orientation of social networks in marketing, the authors examine whether eWOM on identity-focused (e.g., Facebook) and non-identity-focused (e.g., Youtube) platforms impact an objective consumer response variable: motion pictures box office sales. Using social media posts data for 58 randomly selected movie releases across all platforms during the period November 2014 - February 2017, the authors demonstrate that the overall volume of eWOM across all social media is positively associated with movie box office sales. The authors further find that eWOM on identity and nonidentity-focused platforms each have a positive effect on sales, and the magnitude of their effect is not significantly different, suggesting that both types of platforms merit attention from marketing managers

What am I tipping you for? Customer response to tipping requests at limited-service restaurants

Tipping within the foodservice industry has traditionally been reserved for full-service restaurants. However, there is a growing trend of tip requests at limited-service restaurants, where tipping occurs prior to consuming the product. This research aims to examine the effect of a point-of-sale tip request at limited-service restaurants on return intentions via customer irritation. It also aims to analyze the moderating effects of check amount and perceived deservingness

Nintendo’s Next Move

In the 1980s and 1990s, Nintendo was dominating the video game industry with a market share of 90 per cent. Since that time, market share has dropped substantially with new competitors, new technology and changing consumer preferences. This case examines the history of Nintendo including its loss of market share in a rapidly changing industry

How Third Party Observers Respond to Overheard Service Failures: Implications for Frontline Service Employees and the Firm

Frontline service employees and unhappy customers have generally been the main focus of the service failures research. It is established that service failures are difficult to prevent and are costly to a firm. Therefore, effective service recoveries have been proposed such as apology or compensation. The recent research extended the service failures literature by focusing on a broader audience during service failures: third party observers in the servicescape. The current work investigates the degree to which overhearing another customer’s interaction with a service employee following a service failure will impact third party observers’ evaluations of the service employees and the businesses in general. Our general hypothesis is that third party observers will likely to punish the service employee and the establishment after witnessing a failed recovery toward another customer. We test our hypotheses across three studies with experimental designs. In Study 1, 524 undergraduate business students imagined that they were enjoying their meal at a restaurant and they overhear an interaction between the server and another customer at an adjacent table. Participants read one of the nine scenarios that manipulate customer complaint (low, high, high-repeat) and server’s response (positive, neutral, negative) and then participants indicated likelihood to tip the server, percentage of tip they would give the server, and desire for revenge toward the server. The results show that participants were less likely to tip the server and give a lower percentage of tip when the server’s response to the complaining customer was negative. We also found that desire for revenge increases when the server responds negatively, which is the cause for the subsequent outcomes. Study 2 tested responses of third party observers toward the server and the restaurant. In Study 2, in addition to the measures used in Study 1, 423 undergraduate business students indicated their likelihood to return and recommend the restaurant, and their attitude toward the restaurant as a potential underlying mechanism. The results replicated the results of Study 1 in terms of tipping and desire for revenge toward the server. Study 2 also showed that participants were less likely to return and recommend the restaurant when the server’s response was negative. The underlying mechanism for this effect is unfavorable attitude toward the restaurant as a function of server’s negative response to the complaining customer. Study 3 tested management intervention as a solution to the third party punishment toward the establishment. In addition to the manipulations of customer complaint (low, high) and server’s response (negative, neutral), we manipulated management intervention in which a manager apologized from the complaining customer (vs. no management intervention). We recruited 398 participants from Amazon MTurk and they read one of the eight scenarios. The measures were identical to those in Study 2. While replicating nearly all of our findings in previous studies, the results showed that when a manager intervenes and apologizes from the complaining customer, third party observers are no longer likely to punish the restaurant but they still punish the server. Results offer theoretical and practical insights to researchers and service providers. Theoretically, the present results strongly suggest that third party punishment occurs during overheard service failures, and that there is a clear negativity bias operating, with observers weighing negative information more heavily than positive information. Though not directly addressed, it is also likely that responsibility attributions and role expectations play a pivotal role in driving the observed results. It is possible that third party observers attribute the service failure to the server (or at least the firm) and hold default expectations that servers should address the problem and not respond in a negative manner. First practical implication is that service employees should avoid responding negatively to a customer complaint regardless of the severity of the complaint or they will face third party punishment. Second, the punishment will be directed not only toward the service employees but also toward the establishment. Thus, utilizing each punishment during employee training is likely to improve employee motivation to avoid failing to recover a service failure. Third, results indicate that service employees do not get rewarded for responding positive to a customer complaint, as there is no difference between neutral and positive server response. This suggests that service employees do not need to try extra hard to please the customers. Finally, third experiment showed management apology as a way to make up for the server’s negative response and nullify third party punishment toward the establishment (but not toward the server)