Abstract
ABSTRACT Restaurant server income is predominantly composed of tips received from guests and the minimum server wage received from restaurants. Grounded in equity theory, this study investigated the effect of the minimum server wage, in combination with service quality, familiarity, and perceived fairness, on tipping rate. An online scenario-based 2 (minimum server wage) x 2 (service quality) experimental design was conducted. Results revealed that the minimum server wage and familiarity with tipping have moderating roles on the indirect effect of service quality on tipping rate via perceived fairness of tipping. Findings provide new information to researchers and industry stakeholders on the effects of the minimum server wage on guest tipping behavior.
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