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605-655 Level|   Business|   Short Passage|                           
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In their study of whether offering a guarantee of service quality will 08 Aug 2024, 09:36
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MartyMurray GMATNinja Can you please explain question 1? I was confused between option B and option E.
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In their study of whether offering a guarantee of service quality will 16 Aug 2024, 15:14
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MartyMurray GMATNinja Can you please explain question 1? I was confused between option B and option E.
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­(E) is tempting because the second paragraph does indeed consider the effect that service-quality guarantees can have on the service provided by a restaurant.

But remember that we're looking for the primary purpose of the passage, not the just the second paragraph. The advantages and disadvantages explored in the first paragraph have nothing to do with how the level (or quality) of service can be impacted by a service-quality guarantee. Instead, the first paragraph explores how such guarantees can affect customer selection (whether or not the customer goes to the restaurant) and customer expectations.

Yes, the passage does discuss the impact that service-quality guarantees can have on the service provided by a restaurant, but that's part of a broader discussion of the advantages and disadvantages of service-quality guarantees. Most of the advantages (and disadvantages) discussed relate to the effect on customer perception, not on the actual service provided.

So (B) is a better choice.
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In their study of whether offering a guarantee of service quality will 25 Aug 2024, 10:03
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"Moreover, since customers understand a restaurant’s product and know what to anticipate in terms of service, they are empowered to question its quality."

Therefore, for the second question C is the answer.
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In their study of whether offering a guarantee of service quality will 27 Aug 2024, 13:50
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Quote:

Quote:

Quote:
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.

By 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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­GMATNinja

As you rightly mentioned the lines where one could find the clues to answer this question 2,
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."

Lines relevant from the passage: "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"

"This" here refers to the scenario where customers understand product and know what to anticipate in terms of service i.e about electric equipment and anticipates a good quality of service from electrician. It suggests that guarantee has greater customer appeal in this case

Lets see what Option c says:
Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.

While this could be the best choice available, but it does not look like a convincing argument especially when the question is generic in nature. Had it confined to restaurant industry, this would have been no brainer

Could you please provide your expert comments?­
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In their study of whether offering a guarantee of service quality will 26 Sep 2024, 14:16
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As you rightly mentioned the lines where one could find the clues to answer this question 2,

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."

Lines relevant from the passage: "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"

"This" here refers to the scenario where customers understand product and know what to anticipate in terms of service i.e about electric equipment and anticipates a good quality of service from electrician. It suggests that guarantee has greater customer appeal in this case

Lets see what Option c says:

Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.

While this could be the best choice available, but it does not look like a convincing argument especially when the question is generic in nature. Had it confined to restaurant industry, this would have been no brainer

Could you please provide your expert comments?­
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I'm not quite sure that I'm interpreting your question correctly, but the issue might lie with this portion of your analysis:

Quote:
"This" here refers to the scenario where customers understand product and know what to anticipate in terms of service i.e about electric equipment and anticipates a good quality of service from electrician. It suggests that guarantee has greater customer appeal in this case
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You're correct to say that "this" refers to a situation where the customers DO understand the product, KNOW what to anticipate in terms of service, and thus ARE empowered to question its quality.

But electrical work is NOT an example of such a situation. Electrical work is an example of a situation where "this" is NOT generally true. In other words, electrical work is a an example of a situation where customers generally do NOT understand the product, do NOT know what to anticipate in terms of service, and thus are NOT empowered to question the quality.

In such situations (e.g. electrical work), service guarantees might have greater customer appeal. But when customers ARE knowledgeable (e.g. restaurants), service guarantees are likely to have less appeal. So (C) works perfectly.

For anyone who missed it, a full breakdown of Question 2 can be found here: https://gmatclub.com/forum/in-their-study-of-whether-offering-a-guarantee-of-service-quality-will-242450-20.html#p2923129.
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In their study of whether offering a guarantee of service quality will 27 Oct 2024, 01:38
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I had trouble with this one mainly on B and D. Any guidance from the experts would be much appreciated. See below my thinking.

1. 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 is not questioning the results of study more so presenting it pros/cons across higher-priced vs lower-priced restaurants

B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry - agree there are 'potential' advantages and disadvantages given the author's tone regarding the advantages for higher-priced restaurants is semi-confident e.g. 'some evidence... probably reflecting' - whilst presents both pros and cons for lower-priced restaurants across both paragraphs

C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry - eliminated because the author is not talking about 'conventional wisdom' only a study

D. argue that only certain restaurants would benefit from the implementation of service-quality guarantees - agree because the author gives their own opinion in paragraph 2 - benefit of motivating staff in an 'unskilled' industry. I selected this one - self-reflection - maybe I mixed up the 'primary purpose' with the 'main point'?

E. consider the impact that service-quality guarantees can have on the service provided by a restaurant - the passage talks about categories of restaurants (higher vs lower price) in general not any single restaurant or even a single category

Sajjad1994

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 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, 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 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.

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 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.

1. 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


2. 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.


3. 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

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In their study of whether offering a guarantee of service quality will 13 Nov 2025, 20:16
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