Last visit was: 19 Apr 2025, 15:04 It is currently 19 Apr 2025, 15:04
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.
Close
Request Expert Reply
Confirm Cancel
User avatar
FonYenchit
Joined: 29 Sep 2023
Last visit: 24 Apr 2024
Posts: 7
Own Kudos:
209
 [47]
Given Kudos: 12
Posts: 7
Kudos: 209
 [47]
2
Kudos
Add Kudos
45
Bookmarks
Bookmark this Post
Most Helpful Reply
User avatar
MartyMurray
Joined: 11 Aug 2023
Last visit: 19 Apr 2025
Posts: 1,416
Own Kudos:
4,379
 [15]
Given Kudos: 138
GMAT 1: 800 Q51 V51
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
GMAT 1: 800 Q51 V51
Posts: 1,416
Kudos: 4,379
 [15]
13
Kudos
Add Kudos
2
Bookmarks
Bookmark this Post
General Discussion
User avatar
parthwagh
Joined: 18 Oct 2022
Last visit: 19 Mar 2025
Posts: 102
Own Kudos:
Given Kudos: 15
Posts: 102
Kudos: 120
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
mbaprepavi
Joined: 20 Jul 2024
Last visit: 18 Apr 2025
Posts: 39
Own Kudos:
Given Kudos: 108
Location: India
Posts: 39
Kudos: 15
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Skyways Airlines' strategy of charging for services that were previously complimentary will lead to customer resentment, ultimately causing customers to switch to competitors. This resentment is expected to arise when customers encounter unexpected charges during their flight experience


So why is it unexpected according to the author ?
Remember the conclusion about "unexpected charges", customers feel betrayed, and tricked.. --> A real life scenario

Lets think why customers might resent the charges? Why is it a surprise? Did they not already know that its an additional charge for these addons? Did they assume the meal comes free as part of their fare ? -- Authors POV.

The argument assumes that when customers purchase tickets from Skyways, they may assume that certain services (such as checked baggage, seat selection, or refreshments) are included in the fare, as they traditionally would have been. When these charges are revealed later, the customers are upset because they had a different expectation — they believed the fare covered those services

Therefore, The business analyst predicts that unexpected charges will lead to resentment. This assumption relies on the idea that customers might not be aware, before booking, that they will have to pay for these services separately.

If customers are unaware or confused about these charges (e.g., they mistakenly believe that checked baggage is included, but it isn’t), the surprise fees would indeed lead to frustration and dissatisfaction. This is exactly what the analyst argues will cause customers to turn to competitors.

If not, (negated) concusion falls apart. Customers will never encounted unexpected charges, and therefore will not lead to resentment and switching.
User avatar
Raman109
Joined: 17 Aug 2009
Last visit: 19 April 2025
Posts: 795
Own Kudos:
Given Kudos: 33
Products:
Posts: 795
Kudos: 128
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Business analyst: Since many air travelers choose flights on the basi­s of fares posted online, Skyways Airlines now charges for many formerly complimentary services. - Background info.

Since these charges are not included in posted fares, the fares are lower, making the flights appear cheaper to customers shopping online. - Background info.

However, Skyways' strategy will inevitably backfire. - Conclusion.

Customers facing unexpected charges on flights will resent the airline and turn to its competitors. - Supporting premise. Understand it carefully. Customer will get resentment because of the surprise factor on the unexpected charges, and not on the actual price of the ticket. Eg. SA's ticket price may be $200, and competitor may be $220, making SA cheaper overall but when the customers know that this $200, includes $30 for baggage and $10 for seat selection, these "unexpected charges" on services which were complementary earlier, will make them resent and move to competitor, because they may feel cheated. Had the posted fares included the proper breakup and included everything upfront, the customer may have not felt cheated. Its this surprise factor that causes resentment and make them leave and not the actual price of the ticket.

Which of the following is an assumption the business analyst's argument requires?

A. At least some of Skyways Airlines' competitors charge separately for one or more formerly complimentary services. - we are bothered about SA. out of scope.

B. When unexpected charges for services are included, the average cost of flights on Skyways Airlines is higher than that on most competing airlines. - average cost doesn't matter. The average cost for SA may still be lower but the issue is the surprise factor. No.

C. If Skyways Airlines did not charge separately for formerly complimentary services, few customers would resent the airline or turn to its competitors. - Irrelevant. This conditional is not even applicable as its already mentioned in the argument that they charge.

D. At least some customers who buy Skyways Airlines' tickets incorrectly assume that the fares include certain complimentary services. - Yes. They assumed that $200 will include complementary services as may be the case earlier. Had they known that this includes that complementary service charges, they would be no surprise in the end, and they would not leave. So this is our assumption.

E. An airline's business strategy will backfire only if it causes most customers to resent the airline and turn to its competitors - We don't need this minimum condition of "most." Irrelevant.
Moderators:
GMAT Club Verbal Expert
7280 posts
GMAT Club Verbal Expert
233 posts