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

See all articles by Ofer H. Azar

Ofer H. Azar

Ben-Gurion University of the Negev - Guilford Glazer Faculty of Business and Management

Date Written: February 25, 2010

Abstract

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

Azar, Ofer H., Tipping Motivations and Behavior in the US and Israel (February 25, 2010). Journal of Applied Social Psychology, Vol. 40, No. 2, pp. 421-457, 2010. Available at SSRN: https://ssrn.com/abstract=1558813

Ofer H. Azar (Contact Author)

Ben-Gurion University of the Negev - Guilford Glazer Faculty of Business and Management ( email )

P.O. Box 653
Beer-Sheva, 84105
Israel
+972 8 6472675 (Phone)
+972 8 6477691 (Fax)

HOME PAGE: http://www.oferazar.com

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