> Even though a $30 entre with no tip is roughly the same cost as a $25 entre where a tip is expected apparently consumer behavior changed significantly. I bet

> Even though a $30 entre with no tip is roughly the same cost as a $25 entre where a tip is expected apparently consumer behavior changed significantly. I bet this is due to the same effect that leads to .99 pricing. People concentrate the most on the first digit of a dollar amount. So if all your first digits go one number up, the consumer is going to feel the mental pinch and consume less. One solution would be to restructure no-tip pricing in a way that causes the minimum number of first-digit changes (i.e go ahead and make that $12 entree $17, but make the $25 one only $27).