Although surveys are the most frequently used means of assessing

Question

Although surveys are the most frequently used means of assessing customer satisfaction, the meaning of survey results is often difficult to determine. For example, disappointed or angry customers often seize an opportunity to vent their opinions, but contented customers often do not. Even so, surveys can be very useful. In particular, resurveying over time can reveal trends in customer satisfaction.

How a sample of individuals is selected can, however, distort survey results in other ways. Because businesses tend only to survey their own customers, those businesses’ ratings may rise artificially as dissatisfied people go elsewhere and cease being their customers. And a business might interpret a difference in satisfaction ratings between two groups of customers as evidence that it is delivering better service to one than it is to the other, when the true difference lies only in the expectations of different groups of customers. Lastly, because many businesses define customer satisfaction as “meeting or exceeding expectations,” this metric may fall simply because expectations have risen.My partners and I run a prepared-food business. We were tempted to rethink our approach—providing high-quality, premium-priced food—after receiving negative reviews on a social-media website providing user-generated restaurant reviews. But because such reviewers are usually anonymous, it is hard to know to what extent their opinions reflect the majority. We discovered that many of these reviewers were considerably younger and less affluent—and therefore had different expectations with regard to prices—than our customer base of older professionals who routinely express satisfaction when shopping at our business.

Of course, not all reviewers are anonymous. One catalog retailer that is able to match reviews to purchases found that reviewers make smaller-than-average purchases and buy a higher-than-average proportion of sale and clearance items. The retailer still monitors online reviews and responds to product-defect complaints, but it worries less about price complaints.

If businesses all try to please the same segment of reviewers, they risk weakening their appeal to their target markets.

yipmewmew · Answer

GMATNinja   KarishmaB   MartyMurray  Can you guys weigh in on why in Ques1 Option A wont help explain the differences in opinions? Wont having higher expectations help explain why younger ppl are negatively reviewing the food business?

Also in Ques2 wont option B help a lot as seeing the discount, more people will review the business? and hence the business owner will get to know if the majority of their customers have a problem with the food?

harshheda2002 · Answer

Option b) People often cease patronizing a business with which they are dissatisfied.

How does this help explain the difference in the impressions created by the online reviews and the in-person feedback of the prepared-food business as described in the business owner’s passage?

We have no information in the passage that would suggest when and if a customer is going to be "patronizing" a business.

Could somebody please explain this. The official explanation is really vague.

kamali18ks · Answer

kamali18ks · Answer

Quest 1 Option A wont help because

Tab 1

"Meeting expectation or exceeding expectation" = Satisfaction--------->> which also means " Not meeting expectation" = Dissatisfaction
"Expectation increases" = Satisfaction Decreases.

Tab 2

young and less affluent has been due to "Different expection".........so = "Not meeting expectation" = Dissatisfaction,,,

So the dissatisfaction among the young and less affluent has not arose from "increased expectation"

Question2 option B

Giving discount for review wont help for two reasons,

1. in tab 1 it is mentioned that we need survey from different groups.   Increased number of respondent due to discount will be of one group.
2. In tab 2 , it is mentioned that how negative review from the online survey is not real measure of customer satisfaction, becasue those people were concerned about price not about quality. but the product was of premium price (high price) and high quality.  Their target customer are who can give high price for high quality.   so the review from those customer (rich old professionals) is the true measure of customer satisfaction.

so increasing the online review by giving discount wont involve the target group

Riri15 · Answer

Can we get official explanation of the first question?

kamali18ks · Answer

RO1,  Customer satisfaction may fall because expectations have risen :

The discussion of Survey Difficulties states that because many businesses define customer satisfaction as “meeting or exceeding expectations,” measures of customer satisfaction may fall merely because expectations have risen. For the statement under consideration to explain the difference that the business owner observes between the impressions created by the online reviews and the in-person feedback of the prepared-food business, there would need to be some indication that expectations had risen for the online reviewers but not for the customers who gave in-person feedback when shopping. There is, however, no indication that there was any change in expectations, so this statement cannot help explain the difference.

The correct answer is  No .

RO2,  People often cease patronizing a business with which they are dissatisfied :

If it is true that people often cease patronizing a business with which they are dissatisfied, then the reviewers who posted negative online reviews may have been dissatisfied customers who have ceased patronizing the business. (Note that the Survey Difficulties discussion indicates that disappointed or angry customers often seize opportunities to vent, whereas contented customers do not.) On the other hand, someone who continues to patronize a business has obviously not ceased patronizing the business, and so is more likely to be satisfied and would likely be willing to express that satisfaction when shopping at the business. Therefore, this statement does help explain the difference.

The correct answer is  Yes .

RO3,  Contented customers often do not seize an opportunity to vent their opinions :

As the Survey Difficulties discussion notes, disappointed or angry customers often seize opportunities to vent. Clearly, social-media websites that provide user-generated reviews present opportunities to vent their opinions. If contented customers, on the other hand, often do not seize such opportunities to express their opinions, but are willing to express satisfaction when they are shopping at the business, then this statement could help explain the difference.

The correct answer is  Yes .

Elite097 · Answer

KarishmaB  pls explain all the questions. It is unclear

Elite097 · Answer

Solution 3

Determining which customer complaints it would be most beneficial to address
Explanation:
When feedback is anonymous, it’s difficult to tie specific complaints to particular customer segments. Without knowing the demographic or purchasing behavior of the complainants, the business can't effectively prioritize which issues to address. For example, complaints from high-value customers might be more critical to resolve than those from less frequent buyers.

Here’s why the other options are less likely to be the main difficulty:

Determining what types of complaints are most typical among the respondents:

Even with anonymous feedback, the business can still categorize and quantify the types of complaints received.
Detecting trends in its level of customer satisfaction:

Trends can still be observed over time with anonymous feedback, as long as there is consistent data collection.
Determining how to define customer satisfaction:

This is a broader strategic issue that involves setting internal benchmarks and goals, which can be informed by but is not solely dependent on non-anonymous feedback.
Differentiating itself from competitors:

While specific feedback can help in differentiation strategies, the broader challenge in anonymous feedback is more about prioritizing and addressing specific complaints effectively.
Thus, Determining which customer complaints it would be most beneficial to address is the most clear difficulty when dealing with only anonymous feedback.

Ans C

GMATNinja · Answer

Check out  this video  (starting at 28:36) for a full explanation of this one!

ymr · Answer

question said if the following statements are true. please read carefully.

Vatsal7794 · Answer

Hi  KarishmaB 
Can you please explain question 1?

KarishmaB · Answer

Question 1.

Assuming each of the following statements is true, select Yes if the information provided suggests it would help explain the difference in the impressions created by the online reviews and the in-person feedback of the prepared-food business as described in the business owner’s passage. Otherwise, select No.

Very carefully, read what is given about online reviewers and in person feedback:

... receiving negative reviews on a social-media website ... But because such reviewers are usually anonymous, it is hard to know to what extent their opinions reflect the majority. We discovered that many of these reviewers were considerably younger and less affluent—and therefore had different expectations with regard to prices—than our customer base of older professionals who routinely express satisfaction when shopping at our business.

We need to consider what can explain this difference - online reviews are negative but in person routine shoppers are happy.

Customer satisfaction may fall because expectations have risen.

There is no discussion on rising expectation. There is a discussion on different expectations of different client bases, but not how expectations of    online   users have risen and hence negative feedback has been obtained. This factor does not affect difference in the feedback today - negative online reviews vs happy in person routinely shopping professionals.

Select  NO

People often cease patronizing a business with which they are dissatisfied.

Why are    in person routinely shopping professionals happy while others are not? The difference could be explained by saying that those unhappy walked away and do    not    routinely shop at your store anymore. The routine shoppers express happiness. They are happy and that is why they are routine shoppers. So feedback from those people is positive. It is a biased sample.   
  If a business claims that    our    long term employees    have    all expressed satisfaction with    our    work  culture , isn't it a biased opinion. Only those who were happy stayed long term. It is the same logic. 
  Hence it does help explain the difference.

Select  YES

Contented customers often do not seize an opportunity to vent their opinions.

Why online reviews are negative can be explained using this. People who are happy don't normally go online to express their satisfaction. Hence this could explain why there is negative feedback online though in person shoppers express satisfaction. Hence this is relevant too and explains the difference.

Select  YES

Aarya_San · Answer

Older professionals satisfied with the service have expressed their opinions too. Shouldn't the option be  No  then, since even the satisfied customers have seized the opportunity to express their opinions.

KarishmaB

Question 1.

Assuming each of the following statements is true, select Yes if the information provided suggests it would help explain the difference in the impressions created by the online reviews and the in-person feedback of the prepared-food business as described in the business owner’s passage. Otherwise, select No.

Very carefully, read what is given about online reviewers and in person feedback:

... receiving negative reviews on a social-media website ... But because such reviewers are usually anonymous, it is hard to know to what extent their opinions reflect the majority. We discovered that many of these reviewers were considerably younger and less affluent—and therefore had different expectations with regard to prices—than our customer base of older professionals who routinely express satisfaction when shopping at our business.

We need to consider what can explain this difference - online reviews are negative but in person routine shoppers are happy.

Customer satisfaction may fall because expectations have risen.

There is no discussion on rising expectation. There is a discussion on different expectations of different client bases, but not how expectations of    online   users have risen and hence negative feedback has been obtained. This factor does not affect difference in the feedback today - negative online reviews vs happy in person routinely shopping professionals.

Select  NO

People often cease patronizing a business with which they are dissatisfied.

Why are    in person routinely shopping professionals happy while others are not? The difference could be explained by saying that those unhappy walked away and do    not    routinely shop at your store anymore. The routine shoppers express happiness. They are happy and that is why they are routine shoppers. So feedback from those people is positive. It is a biased sample.   
  If a business claims that    our    long term employees    have    all expressed satisfaction with    our    work  culture , isn't it a biased opinion. Only those who were happy stayed long term. It is the same logic. 
  Hence it does help explain the difference.

Select  YES

Contented customers often do not seize an opportunity to vent their opinions.

Why online reviews are negative can be explained using this. People who are happy don't normally go online to express their satisfaction. Hence this could explain why there is negative feedback online though in person shoppers express satisfaction. Hence this is relevant too and explains the difference.

Select  YES

anushkatew · Answer

For Q2:

Statement 1, Including survey questions...:

The business owner notes that one disadvantage of online reviews is that the reviewers are anonymous, and so it is difficult to judge to what extent their opinions reflect the opinions of a majority of their customers. Therefore, if the prepared-foods business conducted a survey of their customers that included questions identifying specific groups of customers and analyzed reported levels of satisfaction within each of these groups, this would be more helpful than the reviews on the social-media site in analyzing overall satisfaction among its customer base.

The correct answer is Yes.

Statement 2, Offering discounted prices...:

The business owner notes that a certain catalog retailer found that online reviewers buy a higher-than-average proportion of sale and clearance items. If this is also true of those who write online reviews of the business owner’s business, then by offering discounts to customers who complete online reviews, the business could end up receiving reviews from the same sort of clientele as is currently leaving online reviews. And if so, there is no information given that suggests that these reviews will make it any easier for the business to identify overall satisfaction than such online reviews previously have done.

The correct answer is No.

Statement 3, Giving the least...:

Nothing in either the Survey Difficulties or Business Owner discussions indicates that by giving different weight to different levels of satisfaction it will become easier for the business to identify overall satisfaction among its customer base than the reviews on the social-media site did.

The correct answer is No.

Yes	No
		Including survey questions to identify specific groups of customers and analyzing reported levels of satisfaction within each of those groups
		Offering discounted prices to customers who complete online surveys
		Giving the least weight to the reports of very high and very low customer satisfaction and the most weight to reports of moderate satisfaction

Although surveys are the most frequently used means of assessing

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

	Determining what types of complaints are most typical among the respondents
	Detecting trends in its level of customer satisfaction
	Determining which customer complaints it would be most beneficial to address
	Determining how to define customer satisfaction
	Differentiating itself from competitors

GMAT Multi-Source Reasoning (MSR) Questions

Although surveys are the most frequently used means of assessing

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards