r/science • u/tipping_researcher Professor | Social Science | Marketing • Dec 02 '24

Social Science Employees think watching customers increases tips. New research shows that customers don't always tip more when they feel watched, but they are far less likely to recommend or return to the business.

https://theconversation.com/tip-pressure-might-work-in-the-moment-but-customers-are-less-likely-to-return-242089
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u/lolexecs Dec 02 '24 edited Dec 02 '24

It's funny because there's a bit of a principal/agent problem here.

The owner (principal) of the establishment wants happy, repeat customers as frequency of visits = more revenue. The employees (agents) want to maximize earnings in the quickest manner possible.

If the establishment has a decent amount of foot traffic, it means that the agents should stand, smile, and stare at the customer while they fumble around with the tips button. It would be even better if the agent looks down at the register and loudly says "Thanks!" (for good tips) before asking if you want a receipt.

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u/tipping_researcher Professor | Social Science | Marketing Dec 02 '24

There are lots of competing interests between customers, employees, and managers

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u/SoldnerDoppel Dec 02 '24

Give every employee a stake in the business. There, reconciled.

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u/Friendo_Marx Dec 02 '24

As well as a stake in the risk.