The Color of Money: Bias & The Brand Experience

Alexandra C. Feldberg and Tami Kim: “Over the past two years, we have investigated discrimination in customer service by conducting large-scale field experiments in the hospitality industry. We have repeatedly found that front-line workers exhibit racial bias in the quality of customer service they provide. In one experiment, we emailed approximately 6,000 hotels across the United States from 12 fictitious email accounts. We varied the names of the senders to signal different attributes, such as race and gender, to the recipients.”

“Overall, hotel employees were significantly more likely to respond to inquiries from people who had typically white names than from those who had typically black and Asian names … Hotel employees provided 20 percent more restaurant recommendations to white than to black or Asian people. Employees’ politeness also varied by race. When responding to white people, employees were more likely to address them by name and to end their emails with a complimentary close (e.g., “Best,” “Sincerely”) than they were when responding to black or Asian people.”

“Instead of relying primarily on trainings to remedy bias, if they truly want to transform the way they serve customers, companies need to make structural changes. For instance, they should standardize scripts and provide employees with specific protocols for managing these situations. Such efforts can institutionalize norms of behavior for employees when they interact with customers … To detect bias in these behaviors requires quantifying different aspects of customer service and comparing treatment quality across a range of customers … It is only after identifying these disparities that companies can develop targeted interventions to combat biases.”


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