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605-655 Level|   Business|   Short Passage|                           
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AbdurRakib
Line
    In their study of whether offering a guarantee of
    service quality will encourage customers to visit a
    particular restaurant, Tucci and Talaga have found
    that the effect of such guarantees is mixed. 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.
(20)
    For restaurants generally, the main benefit of
    a service guarantee probably lies not so much in
    customer appeal as in managing and motivating staff.
    Staff members would know what service standards
    are expected of them and also know that the success
(25)
    of the business relies on their adhering to those
    standards. Additionally, guarantees provide some
    basis for defining the skills needed for successful
    service in areas traditionally regarded as unskilled,
    such as waiting tables.


(Book Question: 412)
The primary purpose of the passage is to
A. question the results of a study that examined the effect of service-quality guarantees in the restaurant industry
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry
D. argue that only certain restaurants would benefit from the implementation of service-quality guarantees
E. consider the impact that service-quality guarantees can have on the service provided by a restaurant



(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.

(Book Question: 414)
According to the passage, Tucci and Talaga found that service guarantees, when offered by lower-priced restaurants, can have which of the following effects?
A. Customers’ developing unreasonably high expectations regarding service
B. Customers’ avoiding such restaurants because they fear that the service guarantee may not be fully honored
C. Customers’ interpreting the service guarantee as a sign that management is not confident about the quality of its service
D. A restaurant’s becoming concerned that its service will not be assiduous enough to satisfy customers
E. A restaurant’s becoming concerned that customers will be more emboldened to question the quality of the service they receive



Question ID's
RC00525-01
RC00525-02
RC00525-07
——-
Why is B correct for the primary purpose? I was confused between B, D and E. I eliminated B because I thought that it didn’t adequately mention the results of the study.

D was eliminated because it doesn’t mention the impact on the restaurant industry. So, I landed up with E.

What I want to understand is why is B correct in light of options D and E so I don’t eliminate incorrectly again?

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kajaldaryani46


Why is B correct for the primary purpose? I was confused between B, D and E. I eliminated B because I thought that it didn’t adequately mention the results of the study.

D was eliminated because it doesn’t mention the impact on the restaurant industry. So, I landed up with E.

What I want to understand is why is B correct in light of options D and E so I don’t eliminate incorrectly again?

Posted from my mobile device


Hi kajaldaryani46,

Quote:
(D) argue that only certain restaurants would benefit from the implementation of service-quality guarantees
Though D can be inferred from the passage, it is not primary purpose. It's just one part that author discusses when evaluating the pros and cons of service-quality guarantees in the restaurant industry.

Quote:
(E) consider the impact that service-quality guarantees can have on the service provided by a restaurant
Same problem as D, though present in the passage, doesn't constitute towards the primary purpose. We can see that impact of service-quality guarantees on the service is mentioned in the last paragraph of the passage, but the passage is mostly about the advantages and disadvantages of service-quality guarantees in the restaurant industry.

Thus Option B is the only correct answer.

Hope This Helps.
Thanks.
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Can someone explain why E is wrong in the 1st question?(Primary purpose)

The primary purpose of the passage is to:
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
E. consider the impact that service-quality guarantees can have on the service provided by a restaurant

In general, impact means effect or influences. Option E talks about the services provided by a restaurant in specific. Option B talks about the restaurant industry in general. Although the first paragraph starts about visit to particular restaurant, the passage as a whole is more focused on service-quality guarantees in the restaurant industry as a whole. Moreover, the focus is on the advantages and disadvantages that service-quality can have in the industry. As a support refer to Line 5,6, 20.

Let me know what you think.

GMATNinja, mikemcgarry, ScottTargetTestPrep, VeritasKarishma please could you kindly advise if my reasoning is right?
Many Thanks.

While much of what you said makes sense, I think you could have more clearly defined the key difference between (B) and (E).

Notice that (E) is focused on the impact of service-quality guarantees on service only, whereas (B) is about the advantages and disadvantages in general of service-quality guarantees.

Thus, since the passage discusses effects other than effects on service, and since it discusses both disadvantages and advantages of service-quality guarantees, such as those related to customer selection of restaurants and the utility of service-quality guarantees in managing staff, (B) better captures the primary purpose of the passage than (E) does.
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The primary purpose of the passage is to
A. question the results of a study that examined the effect of service-quality guarantees in the restaurant industry
-Correct (note I got this wrong…but to be clear, I don’t think it’s particularly obvious that the focus of the passage was on benefits/disadvantages either)
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
-no…the benefits do come toward the end of the paragraph, but that’s really not the main point
C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry
-conventional wisdom is non-sense…OUT
D. argue that only certain restaurants would benefit from the implementation of service-quality guarantees
-no such argument exists…
E. consider the impact that service-quality guarantees can have on the service provided by a restaurant
-no…the main point is about how service quality guarantees affects customer’s likelihood of visiting the restaurant

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.
-no…the passage says the exact opposite of this (see electrical work industry)
B. Such guarantees are likely to be more appealing to customers who know what to anticipate in terms of service.
-no…the guarantees are likely to be LESS appealing to those informed customers
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
-Correct…the opposite of choice B
D. In situations where a high level of financial commitment is involved, a service guarantee is not likely to be very appealing.
-no…the study found that guarantees increase customer selection in more expensive restaurants
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.
-no…presumably a high level of customer service is associated with more expensive restaurants…the passage only tells us that patrons are worried about the service of low end restaurants which offer guarantees

According to the passage, Tucci and Talaga found that service guarantees, when offered by lower-priced restaurants, can have which of the following effects?
A. Customers’ developing unreasonably high expectations regarding service X
B. Customers’ avoiding such restaurants because they fear that the service guarantee may not be fully honored
-Correct…customers expect assiduous service…so their fear that guarantees may not be fully honoured is wrong
C. Customers’ interpreting the service guarantee as a sign that management is not confident about the quality of its service
-Correct
D. A restaurant’s becoming concerned that its service will not be assiduous enough to satisfy customers
No..this is twisted…customers expect these lower end restaurants to be assiduous …why would the restaurant be worried about NOT being assiduous enough…that’s not what you want..
E. A restaurant’s becoming concerned that customers will be more emboldened to question the quality of the service they receive
-no…like choice D this is a restaurant centric choice…we don’t get any flavour of whether customers are loud
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anubhavzarabi Could you please explain 1 question why we choose B?why E is wrong
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anubhavzarabi Could you please explain 1 question why we choose B?why E is wrong

There are multiple hints that you can catch why B is correct answer.

The primary purpose of the passage is to
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
E. consider the impact that service-quality guarantees can have on the service provided by a restaurant


In their study of whether ( like a question this side or that side) offering a guarantee of service quality will encourage customers ( some effect ) to visit a particular restaurant, Tucci and Talaga have found that the effect of such guarantees is mixed
From here, you can understand that the study wants to evaluate the effect of guarantee of service quality ON CONSUMERS
1-25 lines: all talk about effect on consumer perception.
A says: advantage and disadvantage of guarantee. advantages and disadvantages means with respect to consumers for restaurants. So A matches very well.

Only in the end customer mentioned: Additionally, guarantees provide some basis for defining the skills needed for successful service in areas traditionally regarded as unskilled, such as waiting tables.
( too limited information about effect on staff and that too presented as additionally. ( extra informaiton), so obviously this point is not core point )
E says effect on SERVICE PROVIDED by restaurant.
reason to reject E: 1. service provided is secondary to customer perception. 2. its not talked about directly in the pasage.
The whole passage story lies around customer perception on service guarantee.


I hope you are clear why B is clear winner over E.
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[quote="AbdurRakib"][box_out]
Line
    In their study of whether offering a guarantee of
    service quality will encourage customers to visit a
    particular restaurant, Tucci and Talaga have found
    that the effect of such guarantees is mixed. 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.
(20)
    For restaurants generally, the main benefit of
    a service guarantee probably lies not so much in
    customer appeal as in managing and motivating staff.
    Staff members would know what service standards
    are expected of them and also know that the success
(25)
    of the business relies on their adhering to those
    standards. Additionally, guarantees provide some
    basis for defining the skills needed for successful
    service in areas traditionally regarded as unskilled,
    such as waiting tables.
[box_in]

(Book Question: 412)
The primary purpose of the passage is to
A. question the results of a study that examined the effect of service-quality guarantees in the restaurant industry
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry
D. argue that only certain restaurants would benefit from the implementation of service-quality guarantees
E. consider the impact that service-quality guarantees can have on the service provided by a restaurant

GMATNinja GMATNinjaTwo VeritasKarishma VeritasPrepErika mikemcgarry egmat ChiranjeevSingh AndrewN chetan2u CrackVerbal
In Q1 of primary purpose, could eliminate A on sollid grounds. Felt B is correct but I still feel I stuumbled into the ans because POE wasn't solid. How could I have eliminated the other options to arrive at the ans?
Curious to know your approach to POE. Thanks in advance
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Jainam24
AbdurRakib
[box_out]
Line
    In their study of whether offering a guarantee of
    service quality will encourage customers to visit a
    particular restaurant, Tucci and Talaga have found
    that the effect of such guarantees is mixed. 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.
(20)
    For restaurants generally, the main benefit of
    a service guarantee probably lies not so much in
    customer appeal as in managing and motivating staff.
    Staff members would know what service standards
    are expected of them and also know that the success
(25)
    of the business relies on their adhering to those
    standards. Additionally, guarantees provide some
    basis for defining the skills needed for successful
    service in areas traditionally regarded as unskilled,
    such as waiting tables.
[box_in]

(Book Question: 412)
The primary purpose of the passage is to
A. question the results of a study that examined the effect of service-quality guarantees in the restaurant industry
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry
D. argue that only certain restaurants would benefit from the implementation of service-quality guarantees
E. consider the impact that service-quality guarantees can have on the service provided by a restaurant

GMATNinja GMATNinjaTwo VeritasKarishma VeritasPrepErika mikemcgarry egmat ChiranjeevSingh AndrewN chetan2u CrackVerbal
In Q1 of primary purpose, could eliminate A on sollid grounds. Felt B is correct but I still feel I stuumbled into the ans because POE wasn't solid. How could I have eliminated the other options to arrive at the ans?
Curious to know your approach to POE. Thanks in advance


The primary purpose of the passage is to
A. question the results of a study that examined the effect of service-quality guarantees in the restaurant industry

The passage doesn't question the results. It gives the results of the study.

B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry

Correct.
Some advantages to high end restaurants, some disadvantages to low end. But for most restaurants, advantages in terms of motivating staff.

C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry

The author does not discuss conventional wisdom at all. She gives the results of a recent study (Note the use of "have found" here - Tucci and Talaga have found that ... so the study is recent) and then adds to them.

D. argue that only certain restaurants would benefit from the implementation of service-quality guarantees

She says that
For restaurants generally, the main benefit of a service guarantee probably lies not so much in customer appeal as in managing and motivating staff.

So generally, restaurants can benefit from it.

E. consider the impact that service-quality guarantees can have on the service provided by a restaurant

She does do this but that is one part of the whole passage. She discusses the study's results in detail to give the advantages and disadvantages. While discussing this point also, she is giving an advantage "the main benefit of a service guarantee probably lies..." It is clear that her intent is to discuss the advantages and disadvantages.
Hence, (B) is better.

Answer (B)
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Thank you VeritasKarishma. Much appreciated
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Hi GMATNinja

Question on 413

How can you say (C) is accurate in all scenario's ?

While i agree that (C) is right when it comes to cheap restaurants per the passage ...we do not know if this phenomena is right when it comes to expensive restaurants

Hence i said to myself

hmm we don't know if this is true all the time (in all scenario's, specifically for high end restaurants) -- so while this is accurate for cheap restaurants , we don't know about expensive restaurants
Mmm... restaurants. :inlove: :tongue_opt2

Remember that the question asks us to infer which statement "the author of the passage would agree with" -- not which statement is "true all the time" or in "all scenarios," as you state in your analysis. Take another look at (C):

Quote:
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
To choose (C) as our answer, we only need to prove that the author would agree that a service guarantee would have less appeal in this scenario ("where customers are knowledgeable about a business’s product or service"). We do not need to prove that (C) is accurate in "all scenarios."

Let's take a look at the piece in the passage most relevant to answer choice (C):
Quote:
Moreover, since customers understand a 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.
In saying "a restaurant," the author implies that Tucci and Tagala's finding applies to restaurants in general, not just inexpensive restaurants. Customers generally know what to expect at a restaurant and can therefore question the quality of the product or service. This is contrasted to "skilled activities," about which a customer may not feel empowered to question quality. A guarantee of service would have more appeal in the second case than in the first.

The author's reason for bringing up what customers understand about a restaurant's product is not to contrast lower-priced and higher-priced restaurants. Rather, the author is making a broader suggestion about how customers behave when considering different types of products and skills. That's why we have good reason to believe the author would agree with choice (C).

I hope that helps!

Hello GMATNinja
Thank you for the answer brief. However, I still find it hard to understand what the author means when he says: they are empowered to question its quality.

Doesn't he mean that if a person knows the service, s/he questions (Doubts) the quality?
Even though it wouldn't make sense for people to doubt the quality if they are certain of the service quality but still as I was reading I understood this meaning.
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Question 2


nitishjain0109
GMATNinja
jabhatta@umail.iu.edu
Hi GMATNinja

Question on 413

How can you say (C) is accurate in all scenario's ?

While i agree that (C) is right when it comes to cheap restaurants per the passage ...we do not know if this phenomena is right when it comes to expensive restaurants

Hence i said to myself

hmm we don't know if this is true all the time (in all scenario's, specifically for high end restaurants) -- so while this is accurate for cheap restaurants , we don't know about expensive restaurants
Mmm... restaurants. :inlove: :tongue_opt2

Remember that the question asks us to infer which statement "the author of the passage would agree with" -- not which statement is "true all the time" or in "all scenarios," as you state in your analysis. Take another look at (C):

Quote:
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
To choose (C) as our answer, we only need to prove that the author would agree that a service guarantee would have less appeal in this scenario ("where customers are knowledgeable about a business’s product or service"). We do not need to prove that (C) is accurate in "all scenarios."

Let's take a look at the piece in the passage most relevant to answer choice (C):
Quote:
Moreover, since customers understand a 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.
In saying "a restaurant," the author implies that Tucci and Tagala's finding applies to restaurants in general, not just inexpensive restaurants. Customers generally know what to expect at a restaurant and can therefore question the quality of the product or service. This is contrasted to "skilled activities," about which a customer may not feel empowered to question quality. A guarantee of service would have more appeal in the second case than in the first.

The author's reason for bringing up what customers understand about a restaurant's product is not to contrast lower-priced and higher-priced restaurants. Rather, the author is making a broader suggestion about how customers behave when considering different types of products and skills. That's why we have good reason to believe the author would agree with choice (C).

I hope that helps!

Hello GMATNinja
Thank you for the answer brief. However, I still find it hard to understand what the author means when he says: they are empowered to question its quality.

Doesn't he mean that if a person knows the service, s/he questions (Doubts) the quality?
Even though it wouldn't make sense for people to doubt the quality if they are certain of the service quality but still as I was reading I understood this meaning.
Let's take a close look at the line you mentioned:

Quote:
Moreover, since customers understand a restaurant’s product and know what to anticipate in terms of service, they are empowered to question its quality.
If someone is "empowered to question" something's quality, this tells us they have the power to question its quality. In other words, they are able to question its quality.

So why would customers be "empowered" to question a restaurant's quality? According to the author, it's because they "UNDERSTAND a restaurant's product and know what to anticipate in terms of service." In short, since customers understand basically how a restaurant works, they can judge the quality of its service.

According to the author, all of this is "not generally true in the case of skilled activities such as electrical work." Because for things like electrical work, customers probably do not "know what to anticipate in terms of service." Put another way -- at restaurants, people know what good service looks like, so they can judge its quality. For more skilled things like electrical work, customers are less knowledgeable, so they're less able to judge the quality of service.

But why is the author discussing all this? What conclusion does s/he draw? Notice this discussion ends with the statement that in cases like electrical work, "a guarantee might have greater customer appeal." This is in contrast to restaurants, where a service guarantee "could actually have a negative effect."

Let's take another look at (C):

Quote:
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
Recall the author's conclusion from the preceding discussion -- in situations where customers "know what to anticipate in terms of service" (such as restaurants), service guarantees could have a negative affect. But in situations like electrical work, where they don't know what to anticipate, "a guarantee might have greater customer appeal."

This conclusion lines up nicely with the idea that "guarantees are likely to have less appeal" when "customers are knowledgeable about a business’s product or service." Since we can infer the author would agree with (C), it's correct.

I hope that helps!
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Took 4:38 sec, all correct.
Quality of passage & Question asked, both are very well.

Thanks :)
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GMATNinja Can you please explain Q1. Confused between B and C.
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In their study of whether offering a guarantee of
service quality will encourage customers to visit a
particular restaurant, Tucci and Talaga have found
that the effect of such guarantees is mixed. 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.
(20)
For restaurants generally, the main benefit of
a service guarantee probably lies not so much in
customer appeal as in managing and motivating staff.
Staff members would know what service standards
are expected of them and also know that the success
(25)
of the business relies on their adhering to those
standards. Additionally, guarantees provide some
basis for defining the skills needed for successful
service in areas traditionally regarded as unskilled,
such as waiting tables.
Summary: Tucci & Talaga study found that guarantee of service by higher price restaurants offers some evidence of increasing customers whereas for low priced restaurants, guaranteecan have a negative effect. In case of skilled activities, Guanratee might increase customer appeal. In case of restraurants, Guanratee is better used to manage and motivate staff then for customer appeal. Guanratee also provides basis to differentiate in unskilled areas such as waiting tables.

The primary purpose of the passage is to
A. question the results of a study that examined the effect of service-quality guarantees in the restaurant industry
Author is not questioning the results, he is discussing it.
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
Author discusses about its adv and disadv for high & low pirce restaurants.
C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry
There was no conventional wisdom, the passage is about finding of a study.
D. argue that only certain restaurants would benefit from the implementation of service-quality guarantees
While author does mention about the benefit for higher price restraurants, but the passage overall talks about both adv and disadv hence b is better choice.
E. consider the impact that service-quality guarantees can have on the service provided by a restaurant
Again it does talks about it in lines after 25 but that is a very small portion of whole passage,B is better choice

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.
No, Line 15 to 20
B. Such guarantees are likely to be more appealing to customers who know what to anticipate in terms of service.
No
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
Yes, it is mentioned in line 10 to 17
D. In situations where a high level of financial commitment is involved, a service guarantee is not likely to be very appealing.
No
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.
This is for LPR only---> For lower-priced restaurants,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.

According to the passage, Tucci and Talaga found that service guarantees, when offered by lower-priced restaurants, can have which of the following effects?
Line 9 to 17 contains info about guarantee effect on LPR customers.
A. Customers’ developing unreasonably high expectations regarding service
B. Customers’ avoiding such restaurants because they fear that the service guarantee may not be fully honored
C. Customers’ interpreting the service guarantee as a sign that management is not confident about the quality of its service
D. A restaurant’s becoming concerned that its service will not be assiduous enough to satisfy customers
E. A restaurant’s becoming concerned that customers will be more emboldened to question the quality of the service they receive
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Question 1


TBT
GMATNinja Can you please explain Q1. Confused between B and C.
Let's start by nailing down the purpose of each paragraph.

  • Paragraph 1 (lines 1-19): To present Tucci and Talaga's findings on the mixed effects of service-quality guarantees on attracting customers (i.e. they can be effective in certain circumstances, and counterproductive in others).
  • Paragraph 2 (lines 20-29): To propose alternative uses of service-quality guarantees (i.e. to motivate employees).

Let's now take a look at answer choice (C):

Quote:
The primary purpose of the passage is to

C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry
What is the conventional wisdom regarding the effect of service-quality guarantees? Notice the passage never tells us. We're told some of Tucci and Talaga's findings on the question, but we are never told what is considered "conventional wisdom."

So, since we have not idea what the "conventional wisdom" might be, we can eliminate (C).

Let's take a look at (B):

Quote:
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
In discussing the results of Tucci and Talaga, the author gives us some idea of the advantages and disadvantages of service guarantees for attracting customers. More specifically, we learn that they are helpful for higher-priced restaurants, but might be counterproductive for lower-priced restaurants.

In the next paragraph, the author presents a different way that a service guarantee might be advantageous - it could motivate workers.

Considering both of these paragraphs, we see that the author is primarily concerned with discussing the possible effects of service quality guarantees, and when they might be helpful vs. hurtful (i.e. their advantages and disadvantages). For that reason, (B) is correct.

I hope that helps!
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Hi Experts,

GMATNinja KarishmaB

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?

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!
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Sneha2021
Hi Experts,

GMATNinja KarishmaB

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?

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.
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