Consumer Tipping Behavior

Academic Level at Time of Presentation

Senior

Major

Marketing

List all Project Mentors & Advisor(s)

Dr. Sarah Lefebvre

Presentation Format

Oral Presentation

Abstract/Description

Tipping culture in America is something that is dynamic and continually researched. Understanding the factors that influence tipping behaviors is important as tipping accounts for $50 billion in the U.S. economy (Karashian, 2024) and makes up 20 to 60% of service workers incomes (Lynn, 2017). This research attempts to examine how the type of restaurant (i.e., limited service vs. quick service) impacts consumer tipping behavior and understand why these effects occur. Previous research has examined the impact of common environmental factors in full service restaurants such as Olive Garden and explored how restaurant type influences ordering experience (Richardson, et al., 2019). It has also been noted that tipping prompts can lead to negative emotions such as annoyance and anger (Karabas, I., et al., 2020). This, in turn, impacts tip amount and likelihood to return. In addition, studies on tipping in limited service contexts have begun to emerge. However, there is a research gap when it comes to considering how different service environments influence tipping behaviors. This effect is investigated through a two-condition online experiment. The objective of this research is to extend the understanding of how consumer tipping is impacted and determine how practically relevant interventions can alter outcomes. The findings will be meaningful to understanding consumer behavior and for businesses to create a positive tipping experience for servers.

Keywords: Tipping, Consumer Behavior, Service Quality

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Consumer Tipping Behavior

Tipping culture in America is something that is dynamic and continually researched. Understanding the factors that influence tipping behaviors is important as tipping accounts for $50 billion in the U.S. economy (Karashian, 2024) and makes up 20 to 60% of service workers incomes (Lynn, 2017). This research attempts to examine how the type of restaurant (i.e., limited service vs. quick service) impacts consumer tipping behavior and understand why these effects occur. Previous research has examined the impact of common environmental factors in full service restaurants such as Olive Garden and explored how restaurant type influences ordering experience (Richardson, et al., 2019). It has also been noted that tipping prompts can lead to negative emotions such as annoyance and anger (Karabas, I., et al., 2020). This, in turn, impacts tip amount and likelihood to return. In addition, studies on tipping in limited service contexts have begun to emerge. However, there is a research gap when it comes to considering how different service environments influence tipping behaviors. This effect is investigated through a two-condition online experiment. The objective of this research is to extend the understanding of how consumer tipping is impacted and determine how practically relevant interventions can alter outcomes. The findings will be meaningful to understanding consumer behavior and for businesses to create a positive tipping experience for servers.

Keywords: Tipping, Consumer Behavior, Service Quality