Who are the big tippers? Segmenting tippers based on their size of the tip

Abstract

The purpose of this research is to distinguish big tippers from other categories or types of tippers. In this context four types have been identified: those who do not tip, those who tip sometimes, those who tip regularly and those who always tip. A survey was conducted, during a National Arts Festival held in Potchefstroom, South Africa, where 400 questionnaires were distributed, of which 374 were used in the statistical analysis. Results confirmed that different types of tippers exist and that those who tip always are more affluent; the quality of the food as well as the quality of the service were identified as further determinants of tipping. This research determines the reasons why people dine out and how those reasons influence tipping. In addition, reasons why people tip or do not tip were identified. This is one of just four studies conducted on this topic in Africa and the first of its kind in South Africa.