econprojectpaperlauren - Thomas 1 Analysis of tipping...

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Thomas 1 Analysis of tipping Behaviors Many people who work in the service industry wonder if there is anything they can do in their power to change the amount of tips they make and if it’s even possible. In this paper through research and experiments of my own I will attempt to analyze race differences in tipping, find out why people in America tip and find out if people in the service industry can increase their tip percentage through being more personable. In the restaurant industry there is a wide known perception that African Americans tip less than whites. Michael Lynn, an associate professor of consumer behavior in Cornell University's School of Hotel Administration worked his way through college waiting tables and later ended up devoting his career on tipping behaviors. Lynn has done research to explain some of the race disparities in tipping. The research supports people’s perceptions that African Americans do tip less than whites. According to Lynn’s research blacks generally tip lower than whites, even if the server is black. Black and white differences in tipping can be related with socio-economic status and education but are not solely caused by this. Black-White differences in restaurant tipping are evident among middle and lower classes. Race differences in tipping do not disappear when both races get the same type of service. The standard 15 to 20 percent tipping norm is less familiar to blacks than whites. Some people feel that because of the racial stigma in the service industry towards blacks they may get lower quality service. Sometimes blacks feel as if they are being pre- judged from the minute they walk into the restaurant. “THAT waitress sized us up in two seconds. We're black, and black people don't tip," says Anthony, a character complaining about restaurant service in a scene from "Crash," winner of this year's best-picture Oscar”
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Thomas 2 (Engle, 1). There are many reasons as to why blacks leave less tips but discriminatory service is sometimes a factor. “Expecting skimpy gratuities, waiters resist serving African Americans, or they provide poorer service, which discourages blacks from patronizing table-service restaurants. Low tips also make it hard for restaurants in black neighborhoods to attract and retain staff, causing turnover and decreasing profits” (Engle, 1). Black-White differences in tipping is a problem everyone knows about but it is considered very taboo to people in higher positions because they do not want to be stereotyped as being a racist. If blacks and whites are in the same class they tend to tip less. “Black diners average 10.9% to 14.7% of the bill, and white diners average 16.6% to 19.4%, depending on the study. The server's race didn't matter. Black subjects are also more likely than whites to say they never tip servers (6% versus 2%, in one study) and to leave tips as flat-dollar amounts instead of percentages of the bill (50.7% versus 19.4%, in one study) Lynn thinks the main reason that African
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