To display tip suggestion or not? Examining tip suggestion’s impact in technology-facilitated preservice tipping encounters

Abstract

With empirical insights gained across a series of studies, the current research examines the technology-facilitated preservice tipping encounter. Drawing on the tip-enhancing literature and the spatial crowding theory, this research reveals the divergent impacts of tip suggestion on consumers’ tipping behaviors and their satisfaction with the digital payment experience. Our findings show that, while effective in elevating tipping amount, the presence of tip suggestion can frustrate consumers and impose a detrimental impact on their satisfaction with the online payment experience. Particularly, this effect is contingent on the design of the digital payment page: The negative effect of tip suggestion on satisfaction with the payment experience is more profound when the digital payment page follows a crowded layout but mitigated when the layout is spacious. Findings from the current research offer timely contributions to theory and practice with an evolving perspective on the technology-facilitated preservice tipping encounter.