A Study of Factors Affecting Tip Size in Restaurants

Abstract

This study was undertaken to gain understanding of the tipping phenomenon in restaurants. The study reviews the phenomenon of tipping and the accompanying characteristics that determine the gratuity amount of consumers. An understanding of the relationship between tip size and factors such as food quality and level of service will help to determine what areas restaurant personnel should focus on to enhance customer satisfaction and facilitate those working in the restaurant industry. In this study, the researchers tested the hypothesis that the greater the tip size, the more satisfied the customer is with the food quality and service provided by server. The other hypothesis tested was: The greater the tip size, the greater the likelihood of a return patronage. Data were collected at a restaurant in Houston, Texas. This analysis found a strong relationship between tip size and service provided by server and return intentions, but did not find a significant relationship between tip size and food quality.     

The Effects of Race,Education, and Income on Tipping Behavior

ABSTRACT

The purpose of this study is to find out if African Americans do tip less frequently than Whites and if income and education influence the relationship. Respondents were asked about the frequency of tipping and the reasons for tipping. The results suggest that race was a significant factor in the frequency of tipping servers, bartenders, luggage handlers, taxi drivers, and parking attendants. However, income and education tend to nullify these results. Overall the results suggest that while race may be a factor in some service transactions, much of the race effect be nullified by education and income.     

Restaurant tipping and service quality A tenuous relationship

The connection between service quality and tip sizes is tenuous at best, as shown by an analysis of 14 studies (involving 2,645 dining parties at 21 different restaurants) that examined the relationship between service and tips. The meta-analysis of the studies sought to statistically combine 24 correlations between tipping and service. While the studies taken together found that, indeed, tips increased with the perceived quality of service, the relationship was weak enough to raise doubts about the use of tips to motivate servers, measure server performance, or identify dissatisfied customers.     

Advertising Regulations in Sub-Saharan Africa

Abstract

This paper examines the status and outlook of advertising regulations in sub-Saharan Africa. It begins with a synoptic overview of the region's advertising industry, which is used as a backdrop. Advertising regulations pertaining to tobacco, alcohol, pharmaceuticals, children, and politics are examined, and seven regulatory forces (consumer protection; growth of service industry; fairness and vulnerable groups; new media technologies; civil rights and privacy; religion, morality, and taste; and nationalism) likely to stimulate advertising regulations in the region are also presented. The paper concludes with implications and directions for future research.     

The Exporter Wage Premium Hypothesis: An Unconditional Quantile Regression and Decomposition Approach

ABSTRACT

Relying on the World Bank Enterprise Survey dataset in 2012/13, this paper applies the unconditional quantile regression and decomposition estimation techniques to examine the hypothesis that workers in exporting firms receive higher wages than those in non-exporting firms. The results show that the relationship between export and firm’s wage bill is indirect and is transmitted through technology and firm size. Remarkably, these indirect relationships are much more pronounced at the more upper quantiles of the wage bill distribution. However, the net relationships of the interaction between export and technology are relatively larger and positive as compared to that of the interaction between export and firm size which are marginal and mixed. The decomposition analysis indicates that much of the present exporter wage premiums are largely due to the differences in the returns to the characteristics between exporting and non-exporting firms. The findings from this paper suggest directions for future work that can be directly useful for policy.     

Do consumers use tipping to monitor service? Role of power and embarrassment

Tipping is regarded as a buyer monitoring mechanism. By rewarding good service (by giving larger tips), and punishing bad service (by giving smaller tips), consumers can contribute to enhance service quality. However, in this paper, we show that not all consumers use tipping to evaluate service. In three experiments, we demonstrate that based on the level of power consumers feel they have, they punish/reward service differently. Specifically, we show that low-power consumers are less likely than high-power consumers to punish poor service quality (Studies 1 and 2). We find that leaving small tips (in low service quality scenarios) makes low-power consumers anticipate embarrassment. These anticipations mediate the interaction effect of service quality and power on consumer tip size (Study 3).     

Der österreichische Entwurf eines Konsumentenschutzgesetzes

The report gives information about origins, aims, and contents of the Austrian bill for a Consumer Protection Act which has been submitted to the National Council (Nationalrat) of the Austrian Parliament and will be heard in the Justice Committee (Justizausschuß). The bill aims at a far-reaching protection for the consumer in the field of contract law, excluding, however, product liability and certain specific contracts (such as travelling and correspondence courses). The main points of the bill are as follows:

1. The consumer will be protected in instances of doorstep contracts by granting a cooling-off period of one week. Certain clauses in contracts to the detriment of the consumer will be void, for instance, clauses which limit the validity of oral representations, and clauses in standard form contracts which the consumer did not have reason to expect (überraschende Klauseln). The judge will be accorded the right to lower penalties stipulated in contracts. The right of the consumer to get the contract annulled will be strenghtened in cases oflaesio enormis (i.e., where the stipulated price exceeds the true value by more than one half).
2. The consumer will be protected against unfair contents in standard form contracts. The bill foresees two legal means of protection. (a) A general clause to be introduced into the Austrian Civil Code (Art. 879 § 3) will void all stipulations in standard form contracts, which unfairly deprive the consumer of his rights, and which have not freely and reasonably been consented to by the consumer because they were contained in standard forms of the other party or because this party exploited its superiority when putting them into the contract. In addition, the bill voids specific clauses, not only in standard form contracts but also in individual contracts (e.g., exemption clauses with regard to warranties or breach of contract). (b) The bill institutes a collective action which enables certain associations (workers' chambers — Arbeiterkammern, chambers of commerce — Wirtschaftskammern, trade unions, the Association for Consumer Information — der Verein für Konsumenteninformation) to bring action against anybody using illegal standard form contracts.
3. The bill contains provision for forbidding certain unreasonable clauses regarding, e. g., bills of exchange, the use of wage claims as security, and jurisdiction clauses.
4. The bill will incorporate the Instalment Sales Act (Ratengesetz) into the new Consumer Protection Act, thereby extending its sphere of application to most transactions between businessmen and consumers.

     

An Examination of Dividend Policy in the U.S. Restaurant Industry

Abstract

We examine the potential role that agency costs have on dividend payout policy in the restaurant industry. Specifically, we hypothesize that dividends serve to constrain the actions of management. Interest payments also have the same effect, and in a sense, may act as an effective substitute for dividend payments. Furthermore, the larger number of firm owners, the greater the need for dividends to control agency costs. Our findings show significant differences in debt ratios and the number of shareholders between restaurant firms that pay dividends and those that do not.     

Testing servers' roles as experts and managers of tipping behaviour

This article studies the ability of servers to predict their own tips. A distinction is made between the two roles of servers with regard to tipping behaviour: the role of expert and the role of manager. As experts, servers understand the relations between several predictors and tip size, and are able to predict the tip they are about to receive. As managers, servers designate certain tip amounts, and then manage the service encounter so that their predictions are realised. This study maps the necessary conditions for an expert position and outlines the process for managing a service encounter. Empirical testing suggests that servers have an impressive predictive ability. The findings also offer some support to the view of the role of the server as manager.     

Tipping in New Zealand's restaurants

Tipping has not been common practice in New Zealand, and was formerly actively discouraged. The influence of international travelers, particularly from the United States, seems to have contributed to the custom's becoming more prevalent. At the time of this study, tipping in New Zealand remained a voluntary extra payment given for genuinely superior service. Few table servers counted on tips and sincerely appreciated receiving them. An increase in tipping is not without consequences, however. The service relationships involving managers, servers, and customers are altered by the expectation of tips. In addition, dividing tip pools sometimes causes friction among workers.     

Attitudinal change in children: An insight from three decade of advertising campaigns in India

Abstract

Exposure to advertisement is considered to be the primary source of indulgence and distraction for children. Past studies have treated children as both empowered and vulnerable. Empowered because after a certain age children become mature enough to understand the difference between entertainment and persuasion, but before reaching that stage children are extremely naïve. This paper aims to explore the changes in childrens’ attitude towards frequent changes in advertising campaigns with reference to a popular product of a famous chocolate multinational brand in India. Four focus groups comprising of 22 children of both the genders between the age group of 8–14 years participated in the study. Selective advertisement from a period of three decades (1983–2016) were chosen and shown to the children in a birthday party and their responses were collected. Congruency Theory of Social Psychology was applied for the analysis of the excerpts. The findings reveals that frequent changes in advertising campaigns create confusion in the minds of the children. The entertainment and empathy towards the advertisement were reduced considerably when the advertisement execution shifted from children to adults.     

Determinants of Corporate Social Responsibility Disclosure Ratings by Spanish Listed Firms

The aim of this paper is to analyze whether a number of firm and industry characteristics, as well as media exposure, are potential determinants of corporate social responsibility (CSR) disclosure practices by Spanish listed firms. Empirical studies have shown that CSR disclosure activism varies across companies, industries, and time (Gray et al., Accounting, Auditing & Accountability Journal 8(2), 47–77, 1995; Journal of Business Finance & Accounting 28(3/4), 327–356, 2001; Hackston and Milne, Accounting, Auditing & Accountability Journal 9(1), 77–108, 1996; Cormier and Magnan, Journal of International Financial Management and Accounting 1(2), 171–195, 2003; Cormier et al., European Accounting Review 14(1), 3–39, 2005), which is usually justified by reference to several theoretical constructs, such as the legitimacy, stakeholder, and agency theories. Our findings evidence that firms with higher CSR ratings present a statistically significant larger size and a higher media exposure, and belong to more environmentally sensitive industries, as compared to firms with lower CSR ratings. However, neither profitability nor leverage seem to explain differences in CSR disclosure practices between Spanish listed firms. The most influential variable for explaining firms’ variation in CSR ratings is media exposure, followed by size and industry. Therefore, it seems that the legitimacy theory, as captured by those variables related to public or social visibility, is the most relevant theory for explaining CSR disclosure practices of Spanish listed firms.     

Event Study Analysis in Cases with Multiple Brand-Generic Reverse-Payment Settlements

Abstract

Event studies of stock price movements have been used to assess the anticompetitive impact of ‘reverse-payment’ settlement of patent disputes in the drug industry. Evidence for an anticompetitive effect is found when financial markets reward a brand manufacturer with larger stock market capitalization – signaling the agreed upon generic entry date was more profitable (i.e. later) than investors’ expectations. In practice, reverse-payment cases can involve multiple generic competitors and settlements. This paper considers how event-study methodology applies in such cases, with a study of the stock price movements of Cephalon, manufacturer of the drug Provigil. Cephalon entered into four patent litigation settlements with potential generic competitors over a two-month period beginning in December 2005. Event study methods can readily be applied to such a case. Cephalon’s total increase in stock value across four narrow windows around each settlement totaled over $1.0 billion, indicating the agreements delayed generic entry beyond the market's expectation.     

From Publishers to Self-Publishing: Disruptive Effects in the Book Industry

Abstract

This paper explores the structure of the book publishing industry post digitalisation, analysing the choices of the publishers and authors. The introduction of successful e-book readers has belatedly given digitalisation the characteristics of a disruptive technology by making self-publishing a serious option for authors. This has been supported by the entry of new types of intermediaries and the strengthening of others. These changes have reduced the general requirements for an author to get a book self-published. As a result, a larger share of the surplus from the book industry is likely to go to authors, explaining the significant increase in the supply of books. The potential oversupply of books has created a new problem by increasing competition and making consumer searches more difficult. We argue that digitalisation has shifted the potential for market failure from an inadequate supply of books to asymmetric information about quality. It remains to be seen whether the market will provide appropriate intermediaries to solve the asymmetric information problem.     

Evans,W. A. Advertising Today and Tomorrow. Great Britain: George Allen and Unwin, 1974

Abstract

This study reports on developments in the international advertising agency business during the 1970s. Findings suggest that U.S. agencies remain the dominant force in international advertising in contrast to the declining performance of U.S. industry in other sectors. Specifically, American agencies have found faster growth in their overseas markets leading to continually larger shares of their total billings; there has been a growing concentration in the international business of U.S. agencies and in the industry internationally; and, the international experience of U.S. agencies has led to a growing penetration of foreign markets, to growth in productivity, and to increasing domestic market power. Results of the study indicate however, that U.S. agencies may be facing increasing challenges from non-U.S. agencies in the future; notably from the West European, Japanese, and some developing countries.     

Membership Benefits,Membership Action: Why Incentives for Activism Are What Members Want

SUMMARY

This article identifies the benefits of political party membership and which of these benefits also operate as incentives for participation. This exploration is conducted in the context of competing relationship marketing hypotheses, and frameworks from other relevant academic disciplines.

Exploratory empirical research identifies two purposive and three solidary benefits of membership. Values functional motivations, socialization and job satisfaction are identified as having statistically significant relationships with participation. Frequency of agreement with party policies and enhancement functional motivations do not appear to have any relationship with participation.

The article concludes that members using their membership as a vehicle for realizing solidary benefits are more likely to respond to incentives for participation, whilst those merely seeking a relationship with their party are more likely be inactive.     

Changing family structures and childhood socialisation: a study of leisure consumption

Abstract

How children learn to function as consumers has been extensively reviewed in the consumer and marketing literature, although early childhood (5 to 7 years of age) has received relatively limited attention to-date. This study examines this process specifically in relation to the role of socialisation agents. It questions whether parents/guardians, who have traditionally been acknowledged as the primary socialisation agents, retain this influence in an era of changing family structures. Leisure-travel provides the context for review with children aged 5–7 the research population. Findings confirm parental influence to be pivotal across different family structures, but note that, in some structures and circumstances, this influence is shared, particularly with grandparents and the leisure industry. Future research opportunities include the need to examine this shared role further, to investigate leisure industry awareness and response to their influence and to investigate further the implications of social class and ethnicity upon the findings.     

Consumer Innovativeness Among Street Vendors in Mexico City

Abstract

This study relates innovative consumer behavior to informal economic activity within the urban lower middle class of one of the world's major emerging markets, with focus on product innovations in the areas of retail and consumer goods and services. of prime interest are the innovation adoption habits of street vendors, a group hypothesized to possess greater innovative tendency than those of similar social background employed as formal sector wage earners. Results indicate that street vendors report higher income and lower levels of education than their formal sector neighbors and these two groups show distinct product acquisition/patronage patterns, as well. However, the street vendors do not always demonstrate more innovative behavior, as adoption appears product specific.     

Does tipping help to attract and retain better service workers?

A survey of several hundred restaurant servers in the United States found that servers’ attitudes toward working for tips and average tip sizes were weakly related (at best) to their service-orientation, intended job-tenure, and occupational-tenure. These findings suggest that tipping does not substantially help to attract and retain more service-oriented workers. Restaurateurs can eliminate tipping at their restaurants without fear that doing so will reduce the quality of their wait-staff.     

The Survival of Internet-Based B2B Exchanges

Abstract

Researchers have suggested that businesses are undergoing a paradigm shift due to the emergence of the Internet. In the business-to-business arena, fundamental process changes are taking place due to the emergence of Internet-based B2B exchanges. Three types of B2B exchanges have emerged-independent or third party industry specific B2B exchanges, buyer or supplier coalition-based B2B exchanges, and corporate B2B exchanges. While the costs savings associated with Internet-based B2B exchanges are well understood, this paper highlights the critical role that relationships will play in the success or failure of B2B exchanges. Using transactional cost framework, we analyze the various types of Internet-based B2B exchanges and conclude that corporate exchanges have a comparative advantage over open market exchanges, as well as over buyer or supplier coalition-based exchanges. It is our expectation that this paper will serve as a catalyst for future research in this area.