Find all School-related info fast with the new School-Specific MBA Forum

It is currently 20 Aug 2014, 13:03

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

AWA:Mammon Savings and Loan.

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Manager
Manager
avatar
Status: Persevering
Joined: 15 May 2013
Posts: 223
Location: India
Concentration: Technology, Leadership
GMAT Date: 08-02-2013
GPA: 3.7
WE: Consulting (Consulting)
Followers: 1

Kudos [?]: 49 [0], given: 34

GMAT ToolKit User
AWA:Mammon Savings and Loan. [#permalink] New post 22 Sep 2013, 09:10
24. The following appeared in a memo from the customer service division to the manager of Mammon Savings and Loan.
“We believe that improved customer service is the best way for us to differentiate ourselves from competitors and attract new customers. We can offer our customers better service by reducing waiting time in teller lines from an average of six minutes to an average of three. By opening for business at 8:30 instead of 9:00, and by remaining open for an additional hour beyond our current closing time, we will be better able to accommodate the busy schedules of our customers. These changes will enhance our bank’s image as the most customer-friendly bank in town and give us the edge over our competition.”




My response: words 300, time:23 minutes.

The author of the argument concludes that by reducing average waiting time in teller lines from 6 minutes to an average of three, by opening for business early and staying open for an additional hour, the bank, Mammon Savings and Loan, will become the most customer friendly bank. This argument is flawed because it fails to take into account other additional factors.

First, although by reducing the average waiting time in teller lines the customers might be pleased, but there are other alternatives that the competing banks might provide such as ATM (Automated teller machine) which will generally require less or no waiting time. If the aforementioned scenario holds then the competitors will hold an advantage and will be more customer friendly than the bank in question.

Second, Opening bank for an additional hour does not guarantee that the bank will be able to accommodate the busy schedule of the customers as the working hours of people might differ significantly from bank's working hours. Hence, this change might not increase the customer friendliness quotient of the bank.

Finally, there are certain additional factors that might be more valued by the customers than the ones already presented in the argument such as lower interest rates on loan, higher interest rates on savings account than the other competing banks provide. If the bank can offer these benefits to its customers then it will be more customer friendly than the competing banks and this will increase its customer friendliness quotient.

In light of the above, the argument is flawed and it can be strengthened, if the aforementioned concerns are addressed and additional factors are taken into account by the bank. if all the mentioned factors are taken into account, the bank can certainly take a step forward in becoming the most customer friendly bank.

Regards,
Ramandeep
_________________

--It's one thing to get defeated, but another to accept it.

AWA:Mammon Savings and Loan.   [#permalink] 22 Sep 2013, 09:10
    Similar topics Author Replies Last post
Similar
Topics:
4 Experts publish their posts in the topic What % of your MBA expenses are from savings vs loans? kdub09 18 06 Jul 2011, 17:08
Experts publish their posts in the topic Savings and Loans/Financial Aid gozissou 3 07 Mar 2011, 11:18
Guaranteed Loans collegesenior 1 27 Dec 2007, 19:28
Alternative Loans EconGirl 0 20 May 2007, 06:53
Display posts from previous: Sort by

AWA:Mammon Savings and Loan.

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.