Sneha2021
Hi Experts,
GMATNinja KarishmaBIt can be inferred that the author of the passage would agree with which of the following statements about the appeal of service guarantees to customers?
E. In situations where customers expect a high level of customer service, a service guarantee is likely to make customers think that a business is worried about its service.
Why E is incorrect? I think that "high level of service" is expected in high priced restaurants, but nowhere in passage mentioned that in high priced restaurants, customer will think that a business is worried about its service. It is mentioned only for low priced restaurants.
Please let me know if this reason is correct.
Thank you for your help!
Question 2.
(Book Question: 413)
It can be inferred that the author of the passage would agree with which of the following statements about the appeal of service guarantees to customers?
A. Such guarantees are likely to be somewhat more appealing to customers of restaurants than to customers of other businesses.
B. Such guarantees are likely to be more appealing to customers who know what to anticipate in terms of service.
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
D. In situations where a high level of financial commitment is involved, a service guarantee is not likely to be very appealing.
E. In situations where customers expect a high level of customer service, a service guarantee is likely to make customers think that a business is worried about its service.
For
(5)
higher-priced restaurants, there is some evidence
that offering a guarantee increases the likelihood of
customer selection, probably reflecting the greater
financial commitment involved in choosing an
expensive restaurant. For lower-priced restaurants,
(10)
where one expects less assiduous service, Tucci and
Talaga found that a guarantee could actually have a
negative effect: a potential customer might think that
a restaurant offering a guarantee is worried about
its service.
Moreover, since customers understand a
(15)
restaurant’s product and know what to anticipate in
terms of service, they are empowered to question its
quality. This is not generally true in the case of skilled
activities such as electrical work, where, consequently,
a guarantee might have greater customer appeal.The passage says that for higher priced restaurants, customers may prefer a service guarantee because of the financial commitment it involves. But for lower priced restaurant, a service guarantee may signal that the service of the place is questionable. Hence (D) and (E) both are incorrect.
D. In situations where a high level of financial commitment is involved, a service guarantee is not likely to be very appealing.
In situations where a high level of financial commitment is involved, a service guarantee is more appealing.
E. In situations where customers expect a high level of customer service, a service guarantee is likely to make customers think that a business is worried about its service.
In situations where customers expect a high level of customer service (high end restaurants), a service guarantee is more appealing. Customers worry about service at cheaper restaurants only.
The passage also says that since customers understand restaurants, the service guarantee doesn't add a lot of value. It adds more value when customers do not understand the work e.g. skilled activities such as electrical work. Then having a guarantee is re-assures them of the work done.
Hence (C) is correct.