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

Abstract

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

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