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Question 1
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
56% (02:34) correct
44%
(02:50) wrong
based on 9610
sessions
History
Date
Time
Result
Not Attempted Yet
Question 2
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
73% (01:27) correct 27%
(01:38) wrong
based on 9361
sessions
History
Date
Time
Result
Not Attempted Yet
Question 3
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
92% (00:53) correct 8%
(01:17) wrong
based on 8890
sessions
History
Date
Time
Result
Not Attempted Yet
In their study of whether offering a guarantee of service quality will encourage customers to visit a particular restaurant, Tucci and Talaga have found that the effect of such guarantees is mixed. For higher-priced restaurants, there is some evidence that offering a guarantee increases the likelihood of customer selection, probably reflecting the greater financial commitment involved in choosing an expensive restaurant. For lower-priced restaurants, where one expects less assiduous service, Tucci and Talaga found that a guarantee could actually have a negative effect: a potential customer might think that a restaurant offering a guarantee is worried about its service. Moreover, since customers understand a restaurant’s product and know what to anticipate in terms of service, they are empowered to question its quality. This is not generally true in the case of skilled activities such as electrical work, where, consequently, a guarantee might have greater customer appeal.
For restaurants generally, the main benefit of a service guarantee probably lies not so much in customer appeal as in managing and motivating staff. Staff members would know what service standards are expected of them and also know that the success of the business relies on their adhering to those standards. Additionally, guarantees provide some basis for defining the skills needed for successful service in areas traditionally regarded as unskilled, such as waiting tables.
For restaurants generally, the main benefit of a service guarantee probably lies not so much in customer appeal as in managing and motivating staff. Staff members would know what service standards are expected of them and also know that the success of the business relies on their adhering to those standards. Additionally, guarantees provide some basis for defining the skills needed for successful service in areas traditionally regarded as unskilled, such as waiting tables.
1. The primary purpose of the passage is to
A. question the results of a study that examined the effect of service-quality guarantees in the restaurant industry
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry
D. argue that only certain restaurants would benefit from the implementation of service-quality guarantees
E. consider the impact that service-quality guarantees can have on the service provided by a restaurant
A. question the results of a study that examined the effect of service-quality guarantees in the restaurant industry
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry
D. argue that only certain restaurants would benefit from the implementation of service-quality guarantees
E. consider the impact that service-quality guarantees can have on the service provided by a restaurant
2. It can be inferred that the author of the passage would agree with which of the following statements about the appeal of service guarantees to customers?
A. Such guarantees are likely to be somewhat more appealing to customers of restaurants than to customers of other businesses.
B. Such guarantees are likely to be more appealing to customers who know what to anticipate in terms of service.
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
D. In situations where a high level of financial commitment is involved, a service guarantee is not likely to be very appealing.
E. In situations where customers expect a high level of customer service, a service guarantee is likely to make customers think that a business is worried about its service.
A. Such guarantees are likely to be somewhat more appealing to customers of restaurants than to customers of other businesses.
B. Such guarantees are likely to be more appealing to customers who know what to anticipate in terms of service.
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
D. In situations where a high level of financial commitment is involved, a service guarantee is not likely to be very appealing.
E. In situations where customers expect a high level of customer service, a service guarantee is likely to make customers think that a business is worried about its service.
3. According to the passage, Tucci and Talaga found that service guarantees, when offered by lower-priced restaurants, can have which of the following effects?
A. Customers’ developing unreasonably high expectations regarding service
B. Customers’ avoiding such restaurants because they fear that the service guarantee may not be fully honored
C. Customers’ interpreting the service guarantee as a sign that management is not confident about the quality of its service
D. A restaurant’s becoming concerned that its service will not be assiduous enough to satisfy customers
E. A restaurant’s becoming concerned that customers will be more emboldened to question the quality of the service they receive
A. Customers’ developing unreasonably high expectations regarding service
B. Customers’ avoiding such restaurants because they fear that the service guarantee may not be fully honored
C. Customers’ interpreting the service guarantee as a sign that management is not confident about the quality of its service
D. A restaurant’s becoming concerned that its service will not be assiduous enough to satisfy customers
E. A restaurant’s becoming concerned that customers will be more emboldened to question the quality of the service they receive
13 Jun 2017, 01:09
Kudos
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the first question is hard. it takes me a long time to eliminate choice E.
justify every word in answer choices
the word "service" makes choice E wrong.
impact of garantee on service is discussed on the last paragraph not for whole passage. the whole passage is about impact of guarantee on the restaurant industry. B is right.
justify every word in answer choices
the word "service" makes choice E wrong.
impact of garantee on service is discussed on the last paragraph not for whole passage. the whole passage is about impact of guarantee on the restaurant industry. B is right.
21 Nov 2017, 14:40
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Kritesh
Dear Kritesh,
I'm happy to respond.
The phrase "conventional wisdom" is a common term, especially in business writing. Suppose that a particular industry has been stable for decades, and that the successful people in this industry have a shared understanding of what moves lead to success. This shared understanding, drawn from experience in a field, is called "conventional wisdom." It's not always completely true and it's not necessarily the best possible way: often, an innovator in a field is someone who comes in, questions the conventional wisdom, and suggests something radically different that works.
In this passage, "the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry" means the shared understanding, derived from experience, that people in the restaurant industry have after years of working with service-quality guarantees. In other words, all these people in restaurant industry who have thought about service-quality guarantees, who have offered them, and who have seen the results of them in their business--all these people have some shared understanding of what works and what doesn't work. That's conventional wisdom.
My friend, if this phrase completely new to you, that tells me that you are not reading enough. If you want to succeed on the GMAT and in the global business world, you need to be reading business news regularly. See:
How to Improve Your GMAT Verbal Score
Does all this make sense?
Mike
:tongue_opt2 
