The tipping point: a choice-based conjoint analysis of the antecedents of restaurant tipping behavior in the US

Purpose Despite extensive research on tipping behavior, the factors influencing willingness-to-tip have been under-researched. In particular, the effect on consumers of suggested tips at the bottom of receipts remains underexplored. While suggested gratuities on receipts or payment screens are convenient for customers, many of them start at 18% or higher, placing pressure on US consumers. Design/methodology/approach The study examines suggested tips through two online choice-based conjoint analysis surveys, one for limited-service and one for full-service restaurants. The results were analyzed using Bayesian regression. Findings For both restaurant types, suggested tips and the number of menu courses ordered significantly influenced willingness-to-tip. Consumers were willing-to-tip more when ordering multiple courses. While lower suggested tip amounts increase willingness-to-tip, higher suggestions deter it. Research limitations/implications Practically, the results of this article can help restaurateurs understand what impacts tipping behavior and that suggested tips can actually lower the willingness-to-tip. Theoretically, this article extends tipping studies by exploring willingness-to-pay; past studies have focused on behavioral intentions. Originality/value While researchers have previously investigated behavioral intentions regarding tipping, this is one of the first studies to investigate what impacts willingness-to-pay.