When customers feel pressured to tip, it backfires for businesses

Have you ever hesitated at the register, uncomfortable as an employee watched you choose a tip? It’s not just you. The rise of digital tipping systems—from point-of-sale devices held by employees to countertop screens that clearly display your selection—is changing the dynamics of tipping, often in ways that make customers feel scrutinized. As marketing professors who study digital tipping, we wanted to find out how customers respond to this sort of “tip surveillance.” So we conducted...