The Norm of Restaurant Tipping

Topics:
Restaurants
Tags:
Cornell University,
Marketing,
Marketing Research,
Norm
Source:
Cornell University

Vendor Registration: required

Overview: This paper examines restaurant tipping as a behavioral norm. Using survey data, this paper identifies a variety of factors that influence tipping behavior, and in the process lay out a simple theoretical framework to help interpret the empirical observations. It first investigates the efficiency of observed tipping behavior. While there are elements of efficiency - notably, percent tip depends on service quality ù it does not appear fully efficient. The paper then posit a model in which customers trade off material well-being vs. disutility from not adhering to the norm, and uses this model to reinterpret initial empirical findings.

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Format: PDF | Size: 631KB | Date: Mar 2002 | Pages: 33

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