Gold Is the Midas Touch of Tipping

Gold Is the Midas Touch of Tipping

February 3, 2019

A study published in the March 2018 Journal of the Academy of Marketing Sciences reported that the color gold in restaurants can lead to a higher tip for the wait staff.

Previous studies have demonstrated a weak relationship between good service and tip size. In this study, the researchers compared the effect on tip size by varying the color of tablecloths (white vs. gold) and billing folders (black vs. gold).

Black folders resulted in an average tip of 18.9%, while gold folders had an average of 21.5% in tips.

This post is based on the Marketwatch article, A touch of gold in a restaurant means fatter tips, by Na Young Lee, January 18, 2019; and the Journal of the Academy of Marketing Sciences article, Hey big spender! A golden (color) atmospheric effect on tipping behavior, by N.Y. Lee, S.M. Noble, and D. Biswas, March 2018. Image source: JGI/Jamie Grill/Getty Images.

Discussion Questions:

1. How can the study results be used to improve restaurant operations?

Guidance: At first, this appears to be a marketing study.  And it is!  But students should also see that marketing information can be used to create a more profitable service Continue reading

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Angola’s New Last Mile Delivery App

Angola’s New Last Mile Delivery App

January 26, 2019

One large pig to go? No problem.  For $124, an African start-up called Tupuca will deliver it to your doorstep.

Prefer a medium sized chicken?  That will be $5, please.

With Tupuca’s app, customers in Luanda, Angola can order a diverse array of products, including coal, fuel, produce, and even live animals like chickens, pigs, or goats.  At present, an average size order is around $40, and Tupuca’s 140 drivers make about 17,000 deliveries each month.

This post is based on the APICS article, Last-mile delivery apps grow African economies one goat at a time, by Abe Eshkenazi, December 14, 2018. Image source: Shutterstock / Syda Productions.

Discussion Questions:

1. How does Tupuca’s app fit in with the economic and socio-cultural environment in Angola?

Guidance: By partnering with Roque Online, which sends a buyer to the market to buy top quality produce or livestock, Tupuca offers a unique service to its African clients.  Africa boasts 21 of the world’s 30 fastest-growing cities. Newly emerging middle class consumers have money to spend and smartphones on which to order food and other products.

2. How does Tupuca’s app add value for African consumers and the African Continue reading

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