As marketing professors who specialize in customer interactions, we're researching how digital payment technologies have changed how and when customers tip. Our research suggests that asking for tips before service and suggesting tip amounts that are too high can frustrate customers and be bad for business. U.S. customers historically tipped people they assumed were earning most of their income via tips, such as restaurant servers earning less than the minimum wage. In the early 2010s, a wide range of businesses started processing purchases with iPads and other digital payment systems. These systems often prompted customers to tip for services that were not previously tipped. Customers in the past nearly always paid tips after receiving a service, such as at the conclusion of a restaurant meal, after getting a haircut or once your pizza was delivered. That timing could reward high-quality service and give workers an incentive to provide it. Customers now routinely see menus of...
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