Ben WiseGoogle · Head of Programmatic Media at Google | Speaker | Board Director | Startup Advisor

The Reciprocity Effect

Name: The Reciprocity Effect
Uploaded: 2024-05-09T11:53:07+00:00
Duration: 9 s
Channel: Ben Wise
Description: When a bar gave Speaker B a free dessert, Speaker A explains the reciprocity principle: people who receive an unexpected gift feel obligated to repay it…

9 May 2024 · 0 min

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0:09

When a bar gave Speaker B a free dessert, Speaker A explains the reciprocity principle: people who receive an unexpected gift feel obligated to repay it, often with a larger tip. The free dessert led to a tip worth more than the dessert itself, a pattern restaurants can exploit by offering cheap complimentary items to boost revenue.

So last night I was at a bar, and when the bill came, the waiter gave us our dessert for free.
Can I guess what happened next? Okay. You felt obliged to give them such a massive tip that was more expensive than the free dessert. Of course, yeah. That is the reciprocity principle in action. When somebody gives you something, you kind of feel like you owe them. You feel indebted to them, even if they're just doing you a favor. And then because they gave you the free dessert, reciprocity kicks in and you feel like you've got to give a massive tip.
So is it my trick? If you own a restaurant, always give out free dessert to everybody. Just make your desserts cheap. Yeah, just make it—