Yuan, HongWarren, Nathan2021-09-132021-09-132021-09-13https://hdl.handle.net/1794/26633Digital payment platforms have disrupted tipping norms and shifted the relationship between customers and employees. In traditional restaurants, customers provide a tip by writing an amount of their choosing on a paper bill, which is delivered in a discreet billfold at the end of the meal. Digital payment platforms have led to the proliferation of tip requests that 1) occur at the start, rather than the end, of a service encounter, 2) may be visible to employees and other patrons, and 3) include default tip options. Inconsistent practices indicate that managers are unsure when they should request tips, how much privacy they should afford customers who are selecting tips, and how different default tip options might affect customers. This dissertation investigates how tipping sequence, observation, and default options affect tip amounts and non-tip customer responses (e.g., online ratings, re-patronage). Essay 1 introduces the dissertation. This paper reviews past tipping scholarship, emphasizing the importance of norms and interpersonal dynamics in tipped services. This paper also identifies gaps in knowledge about tip sequence, observation, and defaults. Essay 2 examines the effects of tip sequence, revealing that post-service (vs. pre-service) tip requests increase tip amounts and customer responses. Consumer’s perceptions of fairness help to explain these effects. Essay 3 examines the effects of employees and other patrons observing customers as they are selecting tip amounts. Essay 3 finds that employee observation is detrimental to customer responses, and is generally detrimental to tip amounts, unless another patron is also observing. Consumer’s perceived control and generosity signaling beliefs help explain these effects. Essay 4 examines the effects of default tip options (e.g., 5% vs. 25%). Past scholarship has shown a positive relationship between higher (versus lower) default tip levels (e.g., [5%, 10%, 15%] vs. [15%, 20%, 25%]) and tip amounts, such that higher default levels result in higher tip amounts. Essay 4 reveals a negative relationship between default level and non-tip customer responses, such that higher default levels result in lower customer responses. Consumer’s perceived control and affect help to explain these effects.en-USAll Rights Reserved.DefaultsobservationPoint-of-salesocial presenceTip sequenceTippingElectronic Thesis or Dissertation