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The fact that superior service can generate a competitive advantage fo

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

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New post 24 Sep 2015, 06:01
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.

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

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New post 24 Sep 2015, 22:51
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.
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New post 02 Jan 2016, 19:57
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.

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

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New post 24 Aug 2016, 23:13
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!

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

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New post 23 Sep 2016, 13:12
anchal - Why do you think (D) is correct. Can you give your reasoning?

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New post 25 Sep 2016, 21:17
Let's start with summarising the passage in a few points:
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
So, the answer is D.

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.

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New post 06 Aug 2017, 17:58
Could somebody explain Q3 Please.

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

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New post 17 Aug 2017, 07:02
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T700ISB wrote:
Could somebody explain Q3 Please.

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!
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New post 21 Aug 2017, 02:43
All Correct.
12 minutes 45 seconds.

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New post 23 Sep 2017, 01:03
Nice passage . 10 min all correct

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New post 27 Sep 2017, 02:22
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.

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

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New post 07 Dec 2017, 03:06
9 mins 11 secs All correct.

Tricky questions.

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Re: The fact that superior service can generate a competitive advantage fo   [#permalink] 07 Dec 2017, 03:06

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