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# The fact that superior service can generate a competitive

Author Message
Director
Joined: 03 Jul 2003
Posts: 636
The fact that superior service can generate a competitive  [#permalink]

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Updated on: 24 Jul 2013, 14:09
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. Investment 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. ....

Qus: According to the passage, investments in service are comparable to investments in production and distribution in terms of the

A) tangibility of the benefits that they tend to confer.
B) increased revenues that they ultimately produce
C) basis on which they need to be weighed.
D) insufficient analysis that managers devote to them
E) degree of competitive advantage that they are likely to provide.

Could you folks answer this with explanation?

Spoiler: :: OA
C

Thanks much

Originally posted by kpadma on 26 Nov 2003, 15:01.
Last edited by Zarrolou on 24 Jul 2013, 14:09, edited 2 times in total.
Edited the question.
Intern
Joined: 24 Nov 2003
Posts: 29
Location: Champaign

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26 Nov 2003, 16:08
OK eleminate C, D, E right away. Look at the explainations.

Now u r left with A & B

Then pick A. If anyone has a better reason I would like to hear about it.

A) tangibility of the benefits that they tend to confer.
Yes - because there are more benefits than increased revenue

B) increased revenues that they ultimately produce
It is a close call but increased revenue dosent mean increased profit, profit=revenue - cost

C) basis on which they need to be weighed.
The basis are already defined in second sentence

D) insufficient analysis that managers devote to them
Irrelevant

E) degree of competitive advantage that they are likely to provide.
Look at the 2nd sentence - they are talking about tangiable gains. So easily elimiate it too.
Director
Joined: 13 Nov 2003
Posts: 932
Location: Florida

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26 Nov 2003, 16:18
I will go for C.
passage says:
..balanced against other types of investments on the basis of direct, tangible benefits ..."
defines the bases on which benefits should be measured.. C confers
Manager
Joined: 29 Aug 2003
Posts: 207
Location: MI

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10 Dec 2003, 08:16
Should be A.

The examples in the second part of the sentence "tangible benefits such as cost reduction and increased revenues." clearly indicate that the "cost reduction" and the "increased revenues" are applicable to both kinds of investment.

Official ans ?
Senior Manager
Joined: 28 Oct 2003
Posts: 482
Location: 55405

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10 Dec 2003, 08:45
I vote C. Agree with dj.

It's right there in plain English!
Senior Manager
Joined: 29 Oct 2008
Posts: 350
Location: United States
Concentration: Marketing, Technology

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24 Jul 2013, 13:53
dj wrote:
I will go for C.
passage says:
..balanced against other types of investments on the basis of direct, tangible benefits ..."
defines the bases on which benefits should be measured.. C confers

Hi dj,All, I am facing hard time in justifying C as answer. Can you please state your reasons for conferring C as answer? What is wrong with A and B?
I will appreciate any explanations from RC gmatclub gurus towards this RC.
MBA Section Director
Affiliations: GMATClub
Joined: 22 May 2017
Posts: 2093
Concentration: Nonprofit
GPA: 4
WE: Engineering (Computer Software)
Re: The fact that superior service can generate a competitive  [#permalink]

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13 Oct 2018, 02:35
Re: The fact that superior service can generate a competitive   [#permalink] 13 Oct 2018, 02:35
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