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In their study of whether offering a guarantee of service quality will

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In their study of whether offering a guarantee of service quality will [#permalink]

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Question 1
00:00
A
B
C
D
E

Question Stats:

55% (01:40) correct 45% (01:55) wrong based on 1010

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Question 2
00:00
A
B
C
D
E

Question Stats:

63% (00:56) correct 37% (00:43) wrong based on 1029

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Question 3
00:00
A
B
C
D
E

Question Stats:

85% (00:41) correct 15% (00:41) wrong based on 974

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OG 2018 New RC
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

[Reveal] Spoiler: Question #1 OA
[Reveal] Spoiler: Question #2 OA
[Reveal] Spoiler: Question #3 OA

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Re: In their study of whether offering a guarantee of service quality will [#permalink]

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the first question is hard. it takes me a long time to eliminate choice E.
justify every word in answer choices

the word "service" makes choice E wrong.

impact of garantee on service is discussed on the last paragraph not for whole passage. the whole passage is about impact of guarantee on the restaurant industry. B is right.
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New post 28 Jun 2017, 23:58
I took 7:30 for this passage. Got all correct. I think it is 600-700 level passage.
2nd question is a bit confusing.
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New post 29 Jun 2017, 01:22
what are officially correct answer keys? where to get them.

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New post 08 Jul 2017, 23:41
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Got all correct in 6 minutes flat
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Re: In their study of whether offering a guarantee of service quality will [#permalink]

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New post 09 Jul 2017, 22:28
Can someone please help on the third question between choice C and E.
Both are actually stated in the passage, so what makes C better then E.
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New post 15 Jul 2017, 06:40
Hi Kanak

See the words Customer vs Restaurant. Passage says customer will be empowered to ask questions on quality but nothing mentioned how restaurant will react to this. Hence C is a better choice.
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Re: In their study of whether offering a guarantee of service quality will [#permalink]

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New post 15 Jul 2017, 06:47
1 wrong ..Time taken - 11 min

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New post 17 Jul 2017, 16:58
KanakGarg wrote:
Can someone please help on the third question between choice C and E.
Both are actually stated in the passage, so what makes C better then E.


Option E suggests that restaurants are concerned about customers being emboldened/empowered, whcih is nit true. Nothing can eb implied from teh passage about how restaurants are feeling about it. Hence E is wrong. Hope this makes sense.
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Re: In their study of whether offering a guarantee of service quality will [#permalink]

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New post 18 Jul 2017, 08:59
Please explain question 1 and its answers.
How to eliminate C and E?
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In their study of whether offering a guarantee of service quality will [#permalink]

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New post 22 Jul 2017, 16:19
arvind910619 wrote:
Please explain question 1 and its answers.
How to eliminate C and E?


Option C is not right because passage does not suggest anything about conventional wisdom at all. It only talks about the study performed and it's results.
Option E can be eliminates since the passage is more on impact of guarantee on customer perception and on the restaurant staff but certainly not on the service provided by the restaurant.
Hope it helps!
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AbdurRakib wrote:
OG 2018 New RC
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





Passage analysis:

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.


Topic of the passage (i.e. what is the passage talking about?):
Guarantee of service quality
Logic of the first para (i.e. what it really wants to convey): Effect of guarantees (guarantee of
service quality will encourage customers to visit a
particular restaurant) is MIXED.


The first para further explains this "MIXED".



Second para: It kinds of contradicts what was stated in the last line of the first para.
It contradicts by saying that guarantee is beneficial in staff management.



Flow of the passage:

The passage starts off by mentioning about a study conducted by Tucci and Talaga. It says that guarantees have mixed effects (guarantees of service quality that will encourage customers to visit a particular RESTAURANT).

Then it goes on explaining this "MIXED". In the last line of the first para, it states that this is not true for skilled activities. This means that restaurant service is not a skilled activity. In skilled activities, a guarantee might have greater customer appeal.

In the second para, it contradicts the idea presented in last line of the first para.

"The main benefit of a service guarantee lies (probably) in staff management."

But the second para states benefits of guarantee in restaurant business.
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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
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
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KanakGarg wrote:
Can someone please help on the third question between choice C and E.
Both are actually stated in the passage, so what makes C better then E.


SEE LINE 10-17
NO WHERE ITS MENTIONED THAT RESTAURANT'S BECOMING CONCERNED... RATHER ITS WRITTEN CUSTOMER MIGHT THINK AND THEY ( CUSTOMERS) ARE EMPOWERED TO QUESTION ITS ( RESTAURANT) QUALITY

CORRECT IS C
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New post 17 Nov 2017, 11:42
Time taken - 10 mins
Got all the questions right!!

Was lucky on the first one as i was stuck between option B and C and chose B.

GMATNinja mikemcgarry - Could you please explain option C which mentions that examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry

I did not understand the Conventional wisdom part .
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Kritesh wrote:
Time taken - 10 mins
Got all the questions right!!

Was lucky on the first one as i was stuck between option B and C and chose B.

GMATNinja mikemcgarry - Could you please explain option C which mentions that examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry

I did not understand the Conventional wisdom part .

Dear Kritesh,

I'm happy to respond. :-)

The phrase "conventional wisdom" is a common term, especially in business writing. Suppose that a particular industry has been stable for decades, and that the successful people in this industry have a shared understanding of what moves lead to success. This shared understanding, drawn from experience in a field, is called "conventional wisdom." It's not always completely true and it's not necessarily the best possible way: often, an innovator in a field is someone who comes in, questions the conventional wisdom, and suggests something radically different that works.

In this passage, "the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry" means the shared understanding, derived from experience, that people in the restaurant industry have after years of working with service-quality guarantees. In other words, all these people in restaurant industry who have thought about service-quality guarantees, who have offered them, and who have seen the results of them in their business--all these people have some shared understanding of what works and what doesn't work. That's conventional wisdom.

My friend, if this phrase completely new to you, that tells me that you are not reading enough. If you want to succeed on the GMAT and in the global business world, you need to be reading business news regularly. See:
How to Improve Your GMAT Verbal Score

Does all this make sense?
Mike :-)
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(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.
----------
I have taken 2mins to read the passage and write the Point of the passage. and took
50Secs- 1st Q - Right
90Secs - 2nd Q- Wrong
30Secs - 3rd Q - Right

I find all the explanations help for Q1 & 3 but I felt Q2's explanations are missing. So, here are my two cents,

Q2 Explanation: Question Type: Inference question, so the option chosen have to be 100% true according to the passage information

A - Other businesses are not at all touched in the given passage. We are not sure about the outside info. - Eliminated
B - This option Contradicts the given information because the passage says that " Customer who have knowledge of the product and know what to expect out of the servie - WOULD QUESTION THE QUALITY"- Why do they question because Service Guarantee is not so appealing to the customer. - Eliminated
D - Passage doesn't count on the financial aspect of the restaurant business, so it is a weak statement one could make. - Eliminated

Devil Choice: C Vs E
Both these choices refer to this line in 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."

E - The second part of the choice is 100% true that "a service guarantee is likely to make customers think that a business is worried about its service", but where it commit suicide is the part clause attached to this answer choice "In situations where customers expect a high level of customer service", this clause is never mentioned or referred in the passage. - Eliminated

C - Yup, Service guarantee is not so appealing to a customer who has a knowledge of the service or the product.


I believe the method of POE is a very powerful technique to excel on GMAT. Hope the above explanation helps!!!!
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Re: In their study of whether offering a guarantee of service quality will [#permalink]

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New post 22 Mar 2018, 02:39
Hey GMATNinja

Can you please help to explain the answer for Q1 of this passage?

The passage doesn't talk about the advantages or disadvantages of service guarantee on higher priced or lower priced restaurants
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Re: In their study of whether offering a guarantee of service quality will   [#permalink] 22 Mar 2018, 02:39
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