Communicating intent: Effects of employer-controlled tipping strategy disclosures on tip amount and firm evaluations

Abstract

Drawing from attribution theory and extant research on disclosure of firm actions, a conceptual framework is developed for the effects of disclosures communicating employer-controlled tipping strategies. In four experiments, the direct and indirect effects of disclosures pertaining to restaurant ownership of tips on tip amount, repatronage intentions, attitude toward the firm, and perceptions of the firm’s concern for employee well-being are examined. Disclosures providing additional rationale that management is utilizing tips to pay a living wage, as well as the level of service, are found to moderate these effects. Findings contribute to marketing communications (i.e., disclosures) and public policy literatures and have implications for marketing communications, firm management, and federal and state-level tipping policymakers.