Tipping is an activity that generates a sizeable portion of income for the overall hospitality industry. The second research study has also been carried out by Azar (2008) which tries to find out whether a relationship exists between tipping and the quality of service delivery to the customers. This research paper has been prepared by the same author with the specific purpose of providing two papers with different methodologies, philosophies and approaches, from the same author so as to receive two entirely different perspectives on, tipping.
According to Azar (2008) tipping is not dependent on service quality, except in cases where a strong relationship influences and strengthens the relationship between service quality and the tip offered. Using a simple model, the author has aimed this research to conclude that tipping can actually improve service only if there is a sensitivity to quality.
This research paper has been aimed to achieve the following research objectives:
- Outline the phenomenon of tipping in general
- To understand, based on the available information, impact of tipping on behaviors, norms etc.
- From the available information, develop interpret interrelationships between variables involved with tipping, and develop a utility function that determines how it is actually incentive-driven and affects service quality, where it is dependent on tipping.
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