Two approaches to analyzing service encounters (instances of face-to-face interaction between a server designated in a particular area and a customer receiving service from the server) are examined. Some linguists view service encounters as business transaction texts. The two approaches are the "top-down" approach, in which linguists make direct observations of service encounters in various stores and focus on transactional speech, and the "bottom-up" approach, in which the focus is on both transactional and interactional speech. Developments in methodologies for each are described. It is concluded that the notions of service encounters have changed, and that having both direct and indirect observations from the same service setting would be helpful. An analysis of letters of complaint could be complemented with an analysis of thank-you notes to the same service company to see what it was that made negotiations in service encounters so successful. Contains 10 references. (LB)