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This paper explains the dynamics of service encounters using concepts in role and interdependence theories. Antecedents of the service encounter are identified as roles, role expectations, role clarity, and comparison level. These variables influence what takes place in the personal interaction between the customer and service provider. In turn, such behavioral processes as role accuracy, inter-role incongruence, and use of power have important implications for customer satisfaction. Managerial implications of propositions are discussed to assist service marketers involved in people-based and high contact services.