Don’t tell me how much to tip: The influence of gratuity guidelines on consumers’ favorability of the brand

This research investigates the potential downstream consequences that occur due to a brand including gratuity guidelines (i.e., tip suggestions) on its receipts. In six studies, including a field study with an actual restaurant, this research documents several major findings. First, we show that gratuity guidelines negatively influence consumers’ favorability of the brand. Second, we demonstrate that the negative effect of gratuity guidelines on brand favorability is mediated by threat to freedom. Third, we document several boundary conditions by showing that the effect manifests for consumers low (vs high) in patronage behavior of the brand or for consumers with a low (vs high) income level. Finally, we demonstrate that including an explanatory message regarding the intended benefits (e.g., greater convenience) that gratuity guidelines can provide to the consumer eliminates this negative effect.