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The fact that superior service can generate a competitive [#permalink]
26 Nov 2003, 16:01
The fact that superior service can generate a competitive advantage for a company does not mean that every attempt at improving service will create such an advantage. Investment in service, like those in production and distribution, must be balanced against other types of investments on the basis of direct, tangible benefits such as cost reduction and increased revenues. ....
Qus: According to the passage, investments in service are comparable to investments in production and distribution in terms of the
A) tangibility of the benefits that they tend to confer. B) increased revenues that they ultimately produce C) basis on which they need to be weighed. D) insufficient analysis that managers devote to them E) degree of competitive advantage that they are likely to provide.
The examples in the second part of the sentence "tangible benefits such as cost reduction and increased revenues." clearly indicate that the "cost reduction" and the "increased revenues" are applicable to both kinds of investment.
I will go for C. passage says: ..balanced against other types of investments on the basis of direct, tangible benefits ..." defines the bases on which benefits should be measured.. C confers
Hi dj,All, I am facing hard time in justifying C as answer. Can you please state your reasons for conferring C as answer? What is wrong with A and B? I will appreciate any explanations from RC gmatclub gurus towards this RC. _________________
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