Study: Guilt Tipping Changes Consumer Behavior

Researchers from the University of Richmond and BI Norwegian Business School found that digital tipping, which is used in over 100 countries, can contribute to feelings of guilt. “While digital tipping can be convenient, it can also contribute to ‘tipflation’ – the feeling that tipping expectations have gotten out of hand,” study co-author Sara Hanson said. An analysis of 36,888 customers found that when tipping was kept more private, customers were more likely to revisit. However, when customers felt observed, they did tip more. “A business that trains its employees to give customers privacy to tip…will likely develop a better reputation and a more loyal customer base,” Hanson concluded. (Study Finds)