Sunday, October 11, 2009

The Cognitive Dissonance of tipping.

Cognitive Dissonance is defined by wiki as,

"is an uncomfortable feeling caused by holding two contradictory ideas simultaneously. The "ideas" or "cognitions" in question may include attitudes and beliefs, the awareness of one's behavior, and facts. The theory of cognitive dissonance proposes that people have a motivational drive to reduce dissonance by changing their attitudes, beliefs, and behaviors, or by justifying or rationalizing their attitudes, beliefs, and behaviors"

When you go to a neighborhood diner and the server is exceptional and the bill is $20 you would tip $4 (20%). If you dine at a more upscale establishment and the service is ok, the bill is $40, you would tip $6 (15%). If you go to a fancy restaurant and the service is so-so, the bill is $80, the tip is $8 (10%). In all three cases the server took the order, brought a beverage, soup and an entree. The server in the neighborhood diner worked much harder and made the dining experience more pleasurable, however because of the price points and the whole IRS taxing tips based on a percentage of gross sales etc. the server at the high end steak house receives a higher income. That causes an unfairness in the mind of the customer and makes the higher end dining experience less desireable.

The question is how does a proprietor mitigate the effects of that dissonance on their customers?