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

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  • Lee, Jeonggyu
  • Aggarwal, Anubhav
  • Rafieian, Hoori
  • Korschun, Daniel

Abstract

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).

Suggested Citation

  • Lee, Jeonggyu & Aggarwal, Anubhav & Rafieian, Hoori & Korschun, Daniel, 2020. "Do consumers use tipping to monitor service? Role of power and embarrassment," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:joreco:v:56:y:2020:i:c:s0969698919308756
    DOI: 10.1016/j.jretconser.2020.102159
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    References listed on IDEAS

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    Cited by:

    1. Chan, Elisa K. & Wan, Lisa C. & Yi, Xiao (Shannon), 2022. "Smart technology vs. embarrassed human: The inhibiting effect of anticipated technology embarrassment," Annals of Tourism Research, Elsevier, vol. 97(C).
    2. Ziegler, Alexander H. & Allen, Alexis M. & Peloza, John & Ian Norris, J., 2022. "The nature of vicarious embarrassment," Journal of Business Research, Elsevier, vol. 153(C), pages 355-364.
    3. Xia Jiang & Fengyi Deng & Qing Yao & Defeng Yang, 2024. "Better or different? How mimicry by social groups shapes consumers’ preference for differentiated brands," Journal of Brand Management, Palgrave Macmillan, vol. 31(5), pages 502-515, September.

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