Do Consumers Really Pay? A Study on Consumer Behaviour Towards Service Charges
Keywords:
Consumer Behaviour,, Service Charges,, Restaurants,, Consumer Rights,, Payment Behaviour,, CCPA,, Restaurant Billing,, Consumer Protection.Abstract
The practice of levying service charges in restaurants has become a
significant consumer protection issue in India, particularly following the
clarification by the Central Consumer Protection Authority (CCPA) that
payment of service charges is voluntary. Despite these regulatory
developments, consumers continue to exhibit varied payment
behaviours influenced by multiple behavioural and psychological
factors. The present study examines consumer behaviour towards
service charges in restaurants by analysing payment decisions, factors
influencing payment behaviour, and consumers' behavioural responses
towards service charge practices. The study adopts a descriptive
research design and is based on primary data collected from 107 valid
respondents through a structured questionnaire. The data were analysed
using frequency and percentage analysis. The findings reveal that a
majority of consumers continue to pay service charges without
objection, primarily due to appreciation of good service,
misconceptions regarding the compulsory nature of service charges, and
social considerations. The study concludes that consumer behaviour is
shaped by a combination of perceived service quality, awareness, social
norms, and fairness perceptions. Cross-tabulation further revealed slight
behavioural variations across demographic groups. The findings
provide useful insights for policymakers, consumer protection
authorities, and restaurant operators in promoting transparent billing
practices and strengthening consumer rights in the Indian restaurant
industry.
