Running head: TIPPING BASED ON FORMATTING A BILL 1Effects of Tipping Based on the Format of a Check/Bill from a RestaurantTracie EoffWashington State UniversityTIPPING BASED ON FORMATTING THE BILL 2One way to make tipping decisions when you are not sure what to do is through probability known as, “Anchoring and Adjustment.” Anchoring and adjustment theory says thatpeople make their decisions based on a starting point and adjusted accordingly. Another form ofdecision-making is “Psychological Reactance” this is the act of making a tipping decision basedon how it makes you feel psychologically. Reactance theory says that people feel threatened that the behavioral freedoms are being taken away and it increases resistance to suggestion. This study goes beyond the measurements of tipping and in fact measures the psyche of human behavior. One study on anchoring and adjustment shows a people may not obtain all the relevant information when making their decision. (Block & Harper, 1991)Once a person has found an anchoring point they then begin the act of adjusting; oftentimes overconfidence becomes an issue in anchoring and adjustment. This overconfidence in adjusting often results ina halfway mark or 50% of the original value. Based on this information a person may start the anchoring and adjustment process if they are handed a check with the information on the bottom that a gratuity for your convenience of 25% equals $10.82 could result in a 50% adjustment equaling $5.41. (Block & Harper, 1991) Our second theory of “Psychological Reactance” could result in no tip at all for the waitress if she is to give the customer a check/billstating that most people acknowledge quality service with a gratuity. The person working on psychological reactance may decide that they are being told what to do and do nothing. One study suggests that people feel like their freedom and autonomy are being threatened and react in a manner that is opposite of the suggestion being made. (Engs & Hanson, 1989)TIPPING BASED ON FORMATTING THE BILL 3Researchers are interested in knowing if tipping behavior could be based on the format of the check/bill. One hypothesis is based on “Anchoring and Adjustment” and the other on “Psychological Reactance.”Hypothesis 1: Handing someone in a restaurant a check/bill formatted in a way that suggests the amount of the tip, will cause the person to begin the process of anchoring at the suggested amount and ending with a 50% adjustment?Hypothesis 2: Handing someone in a restaurant a check/bill formatted in a way that suggests the person leave a tip will start a “Psychological Reactance” resulting in no tip at all.TIPPING BASED ON FORMATTING THE BILL 4REFERENCESBlock, R. A., & Harper, D. R. (1991). Overconfidence in estimation: Testing the anchoring an adjustment hypothesis. Organizational Behavior and Human Decision Processes 49,, 188 – 207. Engs, R. C. & Hanson D. J. (1989), Reactance Theory: A test with collegiate drinking.Psychological Reports, 64: 1083-1086, retrieved from:
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