A company that operates semi-automated car wash facilities uses zone pricing. For their shops in working-class neighborhoods, the company works very hard to be price-competitive and sets low prices. For their shops in more affluent neighborhoods, the company offers the same car wash services at higher prices. The company’s pricing manager is trying to make policy decisions regarding whether to encourage customers to tip the employees who dry, shine, and vacuum customers’ cars. 

Are car washing services appropriate for tipping? Explain your answer by making reference to the factors that determine the appropriateness of tipping.

Answer rating: 100% (QA)

There is some debate over whether or not tipping of car washing services is appropriate Some people say that it is because the employees of the service put in an honest days work and deserve a tip Oth... View the full answer