The beauty of tipping: customer decision-making during COVID-19 in African beauty salons

Abstract

Research has been limited to investigating tipping in other hospitality industries, while ignoring beauty salons. The objective of this study is to present tipping behaviours in the context of beauty salons in two ways: first, by examining tip predictors; and second, by looking at the amount customers are willing and able to offer as tips. We employed a binary response strategy and a limited dependent-variable approach to test several factors with the use of STATA 17. Results show that tipping depends on service quality, individual social approval, future expectations, religious beliefs, the educational level of the consumer and a customer’s income level. Likewise, the loss of work or sources of income caused by COVID-19 reduces the probability of tipping and, because of health measures and social distancing during COVID-19, people’s tipping decisions and tip amounts increase. Thus, beauty salon practitioners (customers, stylists and managers) should keep their services up-to-date to attract more tips, and customers should not feel embarrassed when they do not have the ability to tip.

Keywords

• behavioural study
• consumer tipping behaviours
• service and hospitality industry
• tip amount
• tip predictors