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:
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at finance.yahoo.com
– Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance
