It is currently 17 Oct 2017, 04:41

### 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

# The fact that superior service can generate a competitive

Author Message
TAGS:

### Hide Tags

Intern
Status: Engineering consultant
Joined: 13 Jul 2014
Posts: 18

Kudos [?]: 5 [0], given: 19

Location: India
Concentration: General Management, Strategy
GMAT 1: 650 Q49 V32
Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

24 Sep 2015, 07:01
Q3 :- The passage suggests which of the following about service provided by the regional bank prior to its investment in enhancing that service?

(A) It enabled the bank to retain customers at an acceptable rate
(B) It threatened to weaken the bank’s competitive position with respect to other regional banks
(C) It had already been improved after having caused damage to the bank’s reputation in the past.
(D) It was slightly superior to that of the bank’s regional competitors.
(E) It needed to be improved to attain parity with the service provided by competing banks.

No clues for this question !! Anyone please explain ...

A & B both are close.

I chose B since to maintain / improve competitive position of the bank management invested in that service.

Kudos [?]: 5 [0], given: 19

Manager
Joined: 21 Jun 2014
Posts: 149

Kudos [?]: 97 [0], given: 59

Location: United States
Concentration: General Management, Strategy
GMAT 1: 630 Q45 V31
GPA: 3.4
WE: Engineering (Computer Software)
Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

24 Sep 2015, 23:51
Hello Rudranket,

Look at the below lines from the passage :
The only merit of the improvement was that it could easily be described to customers.

Now look at the question:
The passage suggests which of the following about service provided by the regional bank prior to its investment in enhancing that service?

The passage clearly says there was no improvement to the existing service level or it helped in adding new customers better then earlier. So we can derive that the existing service was good enough to attract the customers.

(A) It enabled the bank to retain customers at an acceptable rate
(B) It threatened to weaken the bank’s competitive position with respect to other regional banks

Option A re-iterates the same position. Hence it is the correct answer.
Let me know if you have any further doubts.
_________________

Regards,
Manish Khare
"Every thing is fine at the end. If it is not fine ,then it is not the end "

Kudos [?]: 97 [0], given: 59

Manager
Joined: 01 Aug 2014
Posts: 55

Kudos [?]: 6 [0], given: 3

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

### Show Tags

02 Jan 2016, 20:57
Q1 :- The primary purpose of the passage is to
(B) suggest more careful evaluation of a type of business investment
The first passage discussed about the situation "superior service" can get the advanced and not. the second is a example of this view.

Q3 :- The passage suggests which of the following about service provided by the regional bank prior to its investment in enhancing that service?
(A) It enabled the bank to retain customers at an acceptable rate

Enhancing bank's service did not bring to the bank's expected result, since they did not know the real reason why customers use their bank ( they are lazy to change bank ). It means that if the bank did no improve the service, the customer would not leave to another bank.

Q4 :- The passage suggests that bank managers failed to consider whether or not the service improvement mentioned in lines 18-20
(D) was an innovation that competing banks could have imitated
"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."

Q5 :- The discussion of the regional bank (line 13-24) serves which of the following functions within the passage as a whole?
(E) It provides an example of the point about investment in service made in the first paragraph.
As mentioned in question 1, the second passage is an example of the first.

Q6 :- The author uses the word “only” in line 23 most likely in order to
(B) emphasize the relatively low value of the investment in service improvement
The last sentence can be seen as a conclusion of the second passage that improving service does not always bring an advanced to the company.

Question 2 I choose A and still not grasp thoroughly answer C.

Kudos [?]: 6 [0], given: 3

Intern
Joined: 29 Jun 2015
Posts: 12

Kudos [?]: 1 [0], given: 23

Schools: UC Davis '19 (A)
Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

25 Aug 2016, 00:13
manishkhare wrote:
Hello Rudranket,

Look at the below lines from the passage :
The only merit of the improvement was that it could easily be described to customers.

Now look at the question:
The passage suggests which of the following about service provided by the regional bank prior to its investment in enhancing that service?

The passage clearly says there was no improvement to the existing service level or it helped in adding new customers better then earlier. So we can derive that the existing service was good enough to attract the customers.

(A) It enabled the bank to retain customers at an acceptable rate
(B) It threatened to weaken the bank’s competitive position with respect to other regional banks

Option A re-iterates the same position. Hence it is the correct answer.
Let me know if you have any further doubts.

Hi Manish,
I understand why the option A looks good as compared to B. But, why the option 'D' can't be answer to this ? can you pls explain. Thanks!

Kudos [?]: 1 [0], given: 23

BSchool Forum Moderator
Joined: 28 Nov 2014
Posts: 916

Kudos [?]: 207 [0], given: 79

Concentration: Strategy
Schools: Fisher '19 (M)
GPA: 3.71
Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

23 Sep 2016, 14:12
anchal - Why do you think (D) is correct. Can you give your reasoning?

Kudos [?]: 207 [0], given: 79

Intern
Joined: 10 Sep 2016
Posts: 12

Kudos [?]: 6 [0], given: 0

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

### Show Tags

25 Sep 2016, 22:17
1. Investment in service must be evaluated like those in production and distribution
2. If a company provides service that avoids damaging reputation and keeps customers leaving at an unacceptable rate then investment in service wasted
3. Service is a deciding factor for customers only in extreme situations
4. Eg of a regional bank investing in wait time for a teller
5. Points not analysed - customer inertia to switch banks, will it attract new customers, is it easily imitable
6. Only merit - can be easily communicated to customers.

Coming to the questions:
Q1. Primary purpose
The passage clearly talks about aspects to evaluate when investing in service. This is clearly brought out in option B.

Q2. This question is clearly answered in the first point of our summary. Investments in service, production and distribution should be evaluated on similar parameters. Thus, the answer is C - "basis on which they need to be weighed"

Q3. In the passage the author does not point out any apparent business problem for the bank. In point no. 2 of our summary it talks about the two areas when investment in service might be a waste - which is what is also proved for the bank later. Thus, it had to be either service preventing a damaging reputation or which prevents customers from leaving at an alarming rate. In that case the best answer is Option A

Q4. In this question, check by elimination:
A. This was the only merit of the improvement: it could be communicated easily, so incorrect
B. There is no mention of measuring the customer experience in the passage, so incorrect
C. Scaling up and sustainability of the service improvement is not mentioned, so incorrect.
D. This is mentioned as a point by the author while critiquing the service improvement as a point not considered by the bank's managers. (part of point 5 in the summary), so CORRECT.
E. The service level of the bank is no where mentioned as being less than that of its competitors

Q5. In this question also all points need to be considered:
A. By the tone and the first paragraph the author is clear that investments in service need to be well evaluated. So, incorrect.
B. The example does not mention that this investment was done at the cost of another area requiring urgent investment. So, incorrect.
C. Again, in the example only the particular area of service improvement is mentioned and no other alternate within service is mentioned. So, incorrect.
D. The author does not dive deep into aspects of service which should be invested in and which should not be invested in. So, incorrect.
E. The author is actually pointing out that the bank was doing fairly well when it comes to competition. In that respect investment in service was unnecessary. So, this is the correct option

Q6. In the example, the author has completely critiqued the investment put in by the bank. However, as a saving grace he mentions a sole possible benefit. The word "only" thus helps to showcase the limited value of the particular investment. So, the correct option is B.

Sent from my Lenovo K50a40 using GMAT Club Forum mobile app
_________________

Log on to http://www.mbachallengers.com for
Easy strategic GMAT prep
For any queries mail us at mba.challengers@outlook.com

Kudos [?]: 6 [0], given: 0

Manager
Joined: 31 Dec 2015
Posts: 58

Kudos [?]: 4 [0], given: 262

Location: India
GMAT 1: 670 Q44 V38
GMAT 2: 680 Q44 V39
GPA: 3.9
Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

06 Aug 2017, 18:58

Where in the heaven is it mentioned that "It enabled the bank to retain customers at an acceptable rate" ?? :/

Kudos [?]: 4 [0], given: 262

GMAT Club Verbal Expert
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 1020

Kudos [?]: 1555 [0], given: 399

Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: 340 Q170 V170
Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

17 Aug 2017, 08:02
T700ISB wrote:

Where in the heaven is it mentioned that "It enabled the bank to retain customers at an acceptable rate" ?? :/

Quote:
Q3 :- The passage suggests which of the following about service provided by the regional bank prior to its investment in enhancing that service?

(A) It enabled the bank to retain customers at an acceptable rate
(B) It threatened to weaken the bank’s competitive position with respect to other regional banks
(C) It had already been improved after having caused damage to the bank’s reputation in the past.
(D) It was slightly superior to that of the bank’s regional competitors.
(E) It needed to be improved to attain parity with the service provided by competing banks.

Refer to the first sentence of the second paragraph: "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."

This statement tells us that the bank already had a competitive position prior to its investment in enhancing service.

Now refer back to the following statement in the first paragraph: "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."

This implies that if a bank is competitive (i.e. "on a par with its competitors"), it provides service that keeps customers from leaving at an unacceptable rate. Since the bank was competitive prior to its investment in enhancing service, we can infer that, prior to that investment, the bank had already been providing service that kept customers from leaving at an acceptable rate. Thus, (A) is the best choice.

I hope that helps!
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor at www.gmatninja.com | GMAT blog |food blog | Friendly warning: I'm really bad at PMs

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for \$29.99... in any section order

"Next-level" GMAT pronouns | Uses of "that" on the GMAT | Parallelism and meaning

Kudos [?]: 1555 [0], given: 399

Intern
Joined: 09 Mar 2017
Posts: 46

Kudos [?]: 6 [0], given: 13

Location: India
GMAT 1: 650 Q45 V31
GPA: 4
Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

21 Aug 2017, 03:43
All Correct.
12 minutes 45 seconds.

Kudos [?]: 6 [0], given: 13

Intern
Joined: 28 Apr 2017
Posts: 29

Kudos [?]: 2 [0], given: 49

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

### Show Tags

23 Sep 2017, 02:03
Nice passage . 10 min all correct

Kudos [?]: 2 [0], given: 49

Manager
Joined: 10 Dec 2011
Posts: 71

Kudos [?]: 27 [0], given: 26

Location: India
Concentration: Finance, Economics
GMAT Date: 09-28-2012
WE: Accounting (Manufacturing)
Re: The fact that superior service can generate a competitive [#permalink]

### Show Tags

27 Sep 2017, 03:22
Tricky passage. Easy language. But in haste, there is a lot of score to waste.

Q.2 C is correct because when we say Investments in service, like investment in production & distribution, must be balanced against other types of investments on the basis of.
Now, if we need to compare investment in service and investment in other types, we could have chosen A. However, B is a part of A, and the choice would have become diffcult. However, the question asks us about comparison between service and production / distribution. Thus, because both the investments in services & production have to be balanced against other types on some basis, it is the basis which is common. Once again, tangibility can be a ground for comparison between investment in service and other types of investment.

Q.4 Option B is incorrect because it mentions "experiences of the customers", is different from attracting new customers on the basis of excitement. While the passage only talks about new customers, the options suggests to talk about existing customers too. Excited does not necessarily mean change in experience. Change in experience can be negative too. Option D is straightforward.

Kudos [?]: 27 [0], given: 26

Re: The fact that superior service can generate a competitive   [#permalink] 27 Sep 2017, 03:22

Go to page   Previous    1   2   [ 31 posts ]

Display posts from previous: Sort by

# The fact that superior service can generate a competitive

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.