Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 28 May 2017, 20:26

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Source: OG The fact that superior service can generate a

Author Message
TAGS:

### Hide Tags

Intern
Joined: 03 Apr 2011
Posts: 8
Followers: 0

Kudos [?]: 1 [0], given: 0

Source: OG The fact that superior service can generate a [#permalink]

### Show Tags

04 May 2011, 23:56
Source: OG

The fact that superior service can generate a competitive
advantage for a company does not mean that every attempt
at improving service will create such an advantage. Investments
in service, like those in production and distribution,
must be balanced against other types of investments on the
basis of direct, tangible benefits such as cost reduction and
increased revenues. If a company is already effectively on a
par with its competitors because it provides service that
avoids a damaging reputation and keeps customers from
leaving at an unacceptable rate, then investment in higher
service levels may be wasted, since service is a deciding
factor for customers only in extreme situations.

This truth was not apparent to managers of one regional
bank, which failed to improve its competitive position
despite its investment in reducing the time a customer had
to wait for a teller. The bank managers did not recognize
the level of customer inertia in the consumer banking
industry that arises from the inconvenience of switching
banks. Nor did they analyze their service improvement to
determine whether it would attract new customers by producing
a new standard of service that would excite customers
or by proving difficult for competitors to copy. The
only merit of the improvement was that it could easily be
described to customers.

Can we discuss what does 'only merit' means here. I will post the questions afterwards. Lets just share our views.

thanks
Patanjali
If you have any questions
New!
Math Forum Moderator
Joined: 20 Dec 2010
Posts: 2013
Followers: 163

Kudos [?]: 1829 [0], given: 376

Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

05 May 2011, 01:01
patanjali wrote:
Source: OG

The fact that superior service can generate a competitive
advantage for a company does not mean that every attempt
at improving service will create such an advantage. Investments
in service, like those in production and distribution,
must be balanced against other types of investments on the
basis of direct, tangible benefits such as cost reduction and
increased revenues. If a company is already effectively on a
par with its competitors because it provides service that
avoids a damaging reputation and keeps customers from
leaving at an unacceptable rate, then investment in higher
service levels may be wasted, since service is a deciding
factor for customers only in extreme situations.

This truth was not apparent to managers of one regional
bank, which failed to improve its competitive position
despite its investment in reducing the time a customer had
to wait for a teller. The bank managers did not recognize
the level of customer inertia in the consumer banking
industry that arises from the inconvenience of switching
banks. Nor did they analyze their service improvement to
determine whether it would attract new customers by producing
a new standard of service that would excite customers
or by proving difficult for competitors to copy. The
only merit of the improvement was that it could easily be
described to customers.

Can we discuss what does 'only merit' means here. I will post the questions afterwards. Lets just share our views.

thanks
Patanjali

"Only merit" is the "only advantage" or "sole plus point" that came out of the improvement in standard of service by reducing the amount of time a customer has to wait for the teller.

Merit: The customers could be explained easily that they wouldn't have to wait long anymore to see the teller.
_________________
Intern
Joined: 03 Apr 2011
Posts: 8
Followers: 0

Kudos [?]: 1 [0], given: 0

Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

07 May 2011, 14:14
fluke wrote:
patanjali wrote:
Source: OG

The fact that superior service can generate a competitive
advantage for a company does not mean that every attempt
at improving service will create such an advantage. Investments
in service, like those in production and distribution,
must be balanced against other types of investments on the
basis of direct, tangible benefits such as cost reduction and
increased revenues. If a company is already effectively on a
par with its competitors because it provides service that
avoids a damaging reputation and keeps customers from
leaving at an unacceptable rate, then investment in higher
service levels may be wasted, since service is a deciding
factor for customers only in extreme situations.

This truth was not apparent to managers of one regional
bank, which failed to improve its competitive position
despite its investment in reducing the time a customer had
to wait for a teller. The bank managers did not recognize
the level of customer inertia in the consumer banking
industry that arises from the inconvenience of switching
banks. Nor did they analyze their service improvement to
determine whether it would attract new customers by producing
a new standard of service that would excite customers
or by proving difficult for competitors to copy. The
only merit of the improvement was that it could easily be
described to customers.

Can we discuss what does 'only merit' means here. I will post the questions afterwards. Lets just share our views.

thanks
Patanjali

"Only merit" is the "only advantage" or "sole plus point" that came out of the improvement in standard of service by reducing the amount of time a customer has to wait for the teller.

Merit: The customers could be explained easily that they wouldn't have to wait long anymore to see the teller.

Lets try this:

The author uses the word “only” in line 23 most likely in order to
(A) highlight the oddity of the service improvement
(B) emphasize the relatively low value of the investment in service improvement
(C) distinguish the primary attribute of the service improvement from secondary attributes
(D) single out a certain merit of the service improvement from other merits
(E) point out the limited duration of the actual service improvement

[Reveal] Spoiler:
OA - B
- Pls explain how does the OA fit in our interpretation of 'only' that you suggested before reading the question/option.
Math Forum Moderator
Joined: 20 Dec 2010
Posts: 2013
Followers: 163

Kudos [?]: 1829 [0], given: 376

Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

07 May 2011, 15:16
patanjali wrote:
Lets try this:

The author uses the word “only” in line 23 most likely in order to
(A) highlight the oddity of the service improvement
(B) emphasize the relatively low value of the investment in service improvement
(C) distinguish the primary attribute of the service improvement from secondary attributes
(D) single out a certain merit of the service improvement from other merits
(E) point out the limited duration of the actual service improvement

[Reveal] Spoiler:
OA - B
- Pls explain how does the OA fit in our interpretation of 'only' that you suggested before reading the question/option.

I don't understand what you are trying to convey. OA is making perfect sense. My answer before was just to convey literal meaning of the word "only". I didn't answer the question from the perspective of author's tone while using the word "only". Furthermore, rest all of the options are not correct.
_________________
Director
Joined: 21 Dec 2010
Posts: 628
Followers: 18

Kudos [?]: 241 [0], given: 51

Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

14 May 2011, 03:19
actually this can be interpreted in 2 ways.

1. the value of investment was low i.e. the resources allocated(input) for the investment were less.

2. the output generated by the investment was low, which is stated in B
_________________

What is of supreme importance in war is to attack the enemy's strategy.

Manager
Joined: 28 Jul 2011
Posts: 238
Followers: 4

Kudos [?]: 131 [0], given: 16

Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

04 Aug 2011, 08:45
I got B as the best answer. I first got confued with D, which is single out the certain merit, but then i read the entire line corretly and noticed that i not singling out the merits from other merits of customer improvement as there are no other merits mention in the passage.
Senior Manager
Joined: 13 Aug 2012
Posts: 464
Concentration: Marketing, Finance
GPA: 3.23
Followers: 26

Kudos [?]: 467 [0], given: 11

Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

12 Feb 2013, 21:28
The author uses the word “only” in line 23 most likely in order to
(A) highlight the oddity of the service improvement
(B) emphasize the relatively low value of the investment in service improvement
(C) distinguish the primary attribute of the service improvement from secondary attributes
(D) single out a certain merit of the service improvement from other merits
(E) point out the limited duration of the actual service improvement

First of, you will notice that when the author mentioned the ONLY MERIT comment, he/she was explaining why the approach failed and that the author should have considered factors such as: (1) Will it attract new customers? and (2) Will it be easily imitated by competitors? Then sarcastically goes to say its only merit. To me, it conveyed a meaning that the author finds little value to the approach sought by the failed bank approach.

A. It's not odd.
C. There are not primary/ secondary attributes discussed.
D. This is a trap. It did mention that but its for the purpose that when linked to the previous sentences show how little the approach has accomplished. B is better.
E. No such duration mentioned.

By tone and by structure, the author is pointing out how little helpful the approach was.
_________________

Impossible is nothing to God.

Re: The fact that superior service can generate a competitive   [#permalink] 12 Feb 2013, 21:28
Similar topics Replies Last post
Similar
Topics:
the fact that a superior product can generate a competitive advantage 4 15 Jul 2016, 05:39
1 The fact that a superior product can generate a 7 09 Feb 2017, 14:09
2 The general density dependence model can be applied to 11 21 Feb 2017, 09:37
1 In fact, despite the efforts of the various colonial 4 01 May 2012, 12:03
11 The fact that superior service can generate a competitive 23 25 Sep 2016, 22:17
Display posts from previous: Sort by