Running Head: ANGER INTENSITY AND CULTURE Is Customer Anger Rewarded? The Role of Anger Intensity and Power Distance

We investigate the role of the intensity of anger displayed by customers on the tendencies of service agents to award compensation in conditions of low and high power distance (PD). We research this issue from two different perspectives using two studies. In Study 1 we implement a macro-level approach to test the impact of customer anger intensity on compensation in two countries – Singapore (high PD) and Israel (low PD). In Study 2 we adopt a micro-level approach and assess the effects of PD at the individual level. Both studies find that the cultural value of PD moderates the tendency to compensate anger intensity. Low PD relates to greater compensation of intense rather than mild anger, while high PD relates to greater compensation of mild rather than intense anger. At the macro-level (Study 1), perceptions of the inappropriateness of displaying anger mediate the influence of culture and anger intensity on compensation. At the micro-level (Study 2), among high PD individuals, the relationship between anger intensity and compensation is mediated by perceptions of respect, whereas among low PD individuals it is mediated by the perception of threat. The findings suggest the importance of considering PD and emotion intensity in customer service management.