Peer Reviewed/Refereed Publication
Journal of Services Marketing
Management, Marketing and Business Administration
Arthur J. Bauernfeind College of Business
Purpose: Non-voluntary tipping (e.g., automatic gratuity) has received growing attention in the service industry. Existing research suggests customers respond unfavorably to non-voluntary tipping, yet little research has examined why. The current studies address this question, with particular interest in response to non-voluntary tipping under high quality service.
Design/methodology/approach: Two scenario-based experiments tested the proposed hypotheses in between-participants design using ANOVA, hierarchical regression, and PROCESS.
Findings: Study 1 showed that non-voluntary tipping resulted in higher negative emotions, which led to lower return intentions. Surprisingly, the negative effect of non-voluntary tipping was as strong (or stronger) under high (vs. low) quality service. To understand this counterintuitive effect, study 2 developed and tested two competing process models (i.e., blocked vengeance vs. blocked gratitude). Supporting the blocked gratitude model, results revealed that non-voluntary tipping hinders customers’ ability to reward service employees, undermining positive emotions, and lowering return intentions.
Research limitations/implications: Current work was conducted in two settings using two scenario-based experiments. Hence, additional settings with non-scenario-based studies are encouraged.
Practical implications: The present work cautions managers considering a move to non-voluntary tipping to be aware of its negative effects, especially when the service quality is high. The blocked gratitude model suggests that managers should clarify methods available for customers who wish to reward good service.
Originality/value: This paper is the first to examine customer response to non-voluntary tipping under different levels of service quality, and the underlying emotional mechanisms.
This is an Accepted Manuscript of an article published by Emerald Insight in Journal of Services Marketing on July 31, 2020, available online: https://doi.org/10.1108/JSM-03-2020-0082