Tipping Motivations and Behavior in the US and Israel
Journal of Applied Social Psychology, Vol. 40, No. 2, pp. 421-457, 2010
46 Pages Posted: 26 Feb 2010
Date Written: February 25, 2010
Tipping is a multi-billion dollar phenomenon and a major source of income for millions of workers. The results of a study conducted in the US and Israel suggest that people tip mainly to show gratitude, conform to the social norm, and because they know that waiters' income depends on tips. Tipping is motivated more by the positive consequences of tipping than by the negative results of not tipping. Patronage frequency and dining alone have no systematic effects on the level of tips or their sensitivity to service quality. Respondents report tipping much more for excellent service than for poor service, suggesting that tipping can provide significant incentives for high-quality service. A large majority prefers tipping to service charges.
Keywords: tipping, social norms, cross-cultural differences, restaurant industry, experimental survey, service charge, waiters, consumer behavior
JEL Classification: Z13, D12, L83, D03, C83, A12, C91
Suggested Citation: Suggested Citation