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Developing a framework for rewards in combined production/service businesses: The case of tipping in the restaurant industry

Aviad A. Israeli (Department of Hotel and Tourism Management, Ben Gurion University of the Negev, Beer Sheva, Israel)
Rachel Barkan (Department of Business Administration, Ben Gurion University of the Negev, Beer Sheva, Israel)

International Journal of Service Industry Management

ISSN: 0956-4233

Article publication date: 1 December 2004

Abstract

Examines monetary rewards in businesses that combine technical and functional aspects of service. Focusing on the restaurant industry, develops a framework that explains tipping as a reward for the two service dimensions. The technical elements of service are rewarded by dollar tip and the functional elements of service are rewarded by percent tip. An overlap between technical and functional elements results in a conflict between dollar tip and percent tip and, it is suggested, result in a magnitude effect. The framework was tested empirically in a sample of restaurants. The findings indicated that customers' evaluation of the service interaction can be summarized by four main components. Multiple regressions provide initial support to the framework, tying the technical elements to dollar tip and functional elements to percent tip.

Keywords

Citation

Israeli, A.A. and Barkan, R. (2004), "Developing a framework for rewards in combined production/service businesses: The case of tipping in the restaurant industry", International Journal of Service Industry Management, Vol. 15 No. 5, pp. 444-459. https://doi.org/10.1108/09564230410564920

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited