The impact of power distance belief and relative status on service evaluations

While existing research has examined how the consumer’s power distance belief (PDB) shapes service perceptions, the role of the consumer’s relative status—shaped by reference points such as service providers and other customers—and its interplay with PDB remains largely unexplored. Through three studies, this paper examines how PDB moderates the relationship between relative status and service evaluations, particularly in service failure and recovery contexts. Study 1 demonstrates that PDB amplifies the effect of customer-provider status differences on service satisfaction, with stronger effects for individuals with higher PDB. Study 2 highlights how status, PDB, and compensation type jointly influence service recovery evaluations. Study 3 identifies perceived power as a critical mechanism linking status to entitlement and service recovery expectations, particularly among high-PDB individuals. This research advances understanding of how relative status and PDB jointly shape service evaluations and offers practical guidance for managing customer service interactions.