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

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New post Updated on: 05 Aug 2019, 03:17
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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

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Originally posted by AbdurRakib on 12 Jun 2017, 13:53.
Last edited by SajjadAhmad on 05 Aug 2019, 03:17, edited 1 time in total.
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New post 13 Jun 2017, 01:09
6
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 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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New post 22 Jul 2017, 16:19
1
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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New post 03 Sep 2017, 22:53
1
1
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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New post 03 Sep 2017, 22:58
3
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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New post 13 Sep 2017, 13:04
1
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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New post 21 Nov 2017, 14:40
2
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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Re: In their study of whether offering a guarantee of service quality will  [#permalink]

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New post 24 Nov 2017, 11:19
1
(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 18 May 2018, 22:03
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 study is not being questioned, giving guaranteed quality service has been questioned and not the study itself

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

In all the lines the advantages and disadvantages has been discussed in the passage,

(Line 1 to 4) Talks about study, the outcome/effect of study being mixed (i.e having both pro's and con's)

(Line 5) Advantages; (line 10) disadvantage (line 15) customer mindset, pointing towards disadvantage, (Line 20 & 25) talks about advantages.

As per [b]egmat
, a primary purpose passage should consider all the points in the passage.
[/b]

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

Eliminate as this passage talks about a study done and not wisdom.

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

Passage is not arguing for anything, it is stating the effects; the pro's and cons.

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

This is tricky, although the study does show the impact that service-quality guarantees can have on restro industry, the passage is written to show the mixed effect, that the advantages and disadvantages of doing so. and not merely preseting the effect.



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.
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New post 11 Nov 2018, 01:38
Saps wrote:
Solved all 3 in < 4.5 min. However got the first 1 wrong.
@Mangoosh, Can you help explain why the ans to the first one is B and not E.

Many Thanks!



Hey Saps and arvind910619
Not sure if u guys still have the doubt but here we go.

Question 1 - Why C and E are wrong -

Read option E slowly once again.
Quote:
consider the impact that service-quality guarantees can have on the service provided by a restaurant

It talks about the impact of service quality on service provided by the restaurant.
This is only discussed in paragraph 2 to list one of the advantages. It is just a part of the second paragraph and not the idea of the passage as a whole.
In purpose questions we have to consider the passage as a whole. The passage as a whole first states some advantages and disadvantage of service quality gaurantee on customers. Next it says its impact on the service provided by the restaurant.
So when u see the big picture, it is basically stating the advantages and disadvantages of service quality guarantee.


Coming to option C.

Quote:
examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry

Firstly mikemcgarry has provided a really good explanation for the meaning of conventional wisdom.
Conventional wisdom is a generally accepted belief. The passage does not say whether what is discussed is a general belief or not.
Basically the passage does not state or tell us about any conventional wisdom of the restaurant industry let alone examine it.

Quote:
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
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New post 24 Jan 2019, 22:55
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
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New post 06 Feb 2019, 15:20
jabhatta@umail.iu.edu wrote:
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!
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Re: In their study of whether offering a guarantee of service quality will  [#permalink]

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New post 14 Apr 2019, 21:22
Can anyone explain the answer for question 3 ?
Why is it C and not D.
In the 3rdpara 3rd last line it's mentioned about quality of service .

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

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New post 30 Apr 2019, 01:51
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blueshores wrote:
Can anyone explain the answer for question 3 ?
Why is it C and not D.
In the 3rdpara 3rd last line it's mentioned about quality of service .

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Question 3 asks what effects a service guarantee can have when offered by lower-priced restaurants. Here is the piece of the passage relevant to answering this question:
Quote:
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.

Let's first take a look at answer choice (D):
Quote:
D. A restaurant’s becoming concerned that its service will not be assiduous enough to satisfy customers

There are a couple of issues with this statement. First, the "negative effect" mentioned in the passage is that customers will think that the restaurant is worried about the quality of service, which is different than the restaurant actually being concerned about its service. In addition, the expectation of "less assiduous service" is already there before the hypothetical service guarantee is in place, simply because the restaurant is lower-priced. So, it does not make sense that the restaurant will "become concerned" that its service will not be assiduous enough after putting a service guarantee is in place.

For these reasons, (D) is out.

Now take a look at (C):
Quote:
C. Customers’ interpreting the service guarantee as a sign that management is not confident about the quality of its service

This closely mirrors the information in the passage, that "a potential customer might think that a restaurant offering a guarantee is worried about its service." (C) is the correct answer.

I hope that helps!
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Re: In their study of whether offering a guarantee of service quality will   [#permalink] 30 Apr 2019, 01:51
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