Has tipping culture in the US gotten out of control? Cornell University Professor of Services Marketing Michael Lynn joins Wealth! as part of Yahoo Finance's Small Business: Big Opportunities special this week to break down when and how you should be tipping next time a screen is turned around asking you to make a gratuity selection.
"In these kinds of counter-service settings, the majority of people are still not leaving tips," Lynn explains of carry-out and coffee shop situations.
He adds that tipping does not help small businesses as much as people think. "What tipping does is it gets price-insensitive customers, people who are willing to pay more than they have to, they're effectively subsidizing the patronage of more price-sensitive customers who aren't willing to pay more than they have to because of tipping," he explains.
Catch more of Yahoo Finance's special Small Business: Big Opportunities coverage this week, or watch this full episode of Wealth!
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This post was written by Melanie Riehl