Faculty & Research
Exploring Consumer Reactions to Tipping Guidelines: Implications for Service Quality
Vol 8 No 8
By: Rohit Verma Ph.D., Kate Karniouchina and Himanshu Mishra Ph.D
Executive Summary: This study examines the relative effectiveness of using gratuity guidelines to encourage restaurant patrons to be more generous with wait staff. The study compared the effects on tips of an educational approach which informed guests about tip norms against an actual calculation printed on the check (as well as no guidelines at all). Using an internet simulation experiment, the study found that potential restaurant guests’ reaction to tip reminders depended in part on whether the restaurant’s service was excellent, average, or just plain shoddy. It’s clear that offering suggestions influenced tip amounts, but not always in the expected way. Offering educational guidelines tended to raise tips when service was adequate, but it reduced the highest tips when service was excellent. When service was poor, however, mentioning tip norms encouraged patrons to take revenge on the hapless server. Offering a calculation on the check improved tips under all service quality levels, although the increase in tip levels was not significant when service was poor. Since the study is a simulation, the authors encourage restaurant operators to contact them to engage in a real-life experiment of tipping guidelines.
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- Exploring Consumer Reactions to Tipping Guidelines: Implications for Service Quality By: Rohit Verma Ph.D., Kate Karniouchina and Himanshu Mishra Ph.D
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Other Reports or Articles You May Find of Interest
- Complaint Communication: How Complaint Severity and Service Recovery Influence Guests’ Preferences and Attitudes, by Alex M. Susskind
- A Consumer’s View of Restaurant Reservation Policies, by Sheryl E. Kimes
- Examining the Effects of Full-Spectrum Lighting in a Restaurant, by Stephani K.A. Robson and Sheryl E. Kimes
About Rohit Verma Ph.D.
Rohit Verma is an Associate Professor of Service Operations Management at the Cornell University, School of Hotel Administration. Prior to his current appointment, he was the George Eccles Professor of Management, David Eccles School of Business at the University of Utah. His research interests include Product/Service Design, Innovation & Process Improvement, Supplier Selection Strategies, and Operations/Marketing interrelated issues. He has published over 40 articles in prestigious business journals such as California Management Review, Cornell Quarterly, Decision Sciences, Journal of Operations Management, Journal of Product Innovation Management, Journal of Service Research, MIT Sloan Management Review, Production and Operations Management, and other journals. Summaries of three of his recent research articles appeared in various issues of MIT Sloan Management Review’s Intelligence sections. His research projects have been sponsored by the United States Forest Service, Marketing Science Institute, Hospitality Sales & Marketing Association International (HSMAI) and various corporations such as CSFB, First Chicago, NCR Knowledge Lab, General Growth Properties, Siemens, Mead Johnson, Kimberley Clarks, Hammerson, and others.
Rohit has received several teaching and research awards including the "Skinner Award For Early Career Research Accomplishments" from the Production and Operations Management Society; "Sprit of Inquiry Award" (the highest honor for scholarly activities within DePaul University); “Teaching Innovation Award” (DePaul University); and “Doctoral Student Teaching Award” (University of Utah).
He serves as the Associate Editor of Journal of Operations Management, and Decision Sciences; Senior Editor of Production and Operations Management; and Editorial Board Member of Journal of Service Research, and Cornell Hotel and Restaurant Quarterly. He also served as Guest Editor for four issues of Journal of Operations Management on topics related to effective management of service businesses.
