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605-655 (Medium)|   Business|   Short Passage|                              
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In their study of whether offering a guarantee of service quality will Updated on: 24 Sep 2024, 09:04
Originally posted by GMATNinja on 13 Dec 2021, 14:56.
Last edited by GMATNinjaTwo on 24 Sep 2024, 09:04, edited 1 time in total.
fixed typo
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Question 2


nitishjain0109
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Hi GMATNinja

Question on 413

How can you say (C) is accurate in all scenario's ?

While i agree that (C) is right when it comes to cheap restaurants per the passage ...we do not know if this phenomena is right when it comes to expensive restaurants

Hence i said to myself

hmm we don't know if this is true all the time (in all scenario's, specifically for high end restaurants) -- so while this is accurate for cheap restaurants , we don't know about expensive restaurants
Mmm... restaurants. :inlove: :tongue_opt2

Remember that the question asks us to infer which statement "the author of the passage would agree with" -- not which statement is "true all the time" or in "all scenarios," as you state in your analysis. Take another look at (C):

Quote:
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
To choose (C) as our answer, we only need to prove that the author would agree that a service guarantee would have less appeal in this scenario ("where customers are knowledgeable about a business’s product or service"). We do not need to prove that (C) is accurate in "all scenarios."

Let's take a look at the piece in the passage most relevant to answer choice (C):
Quote:
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.
In saying "a restaurant," the author implies that Tucci and Tagala's finding applies to restaurants in general, not just inexpensive restaurants. Customers generally know what to expect at a restaurant and can therefore question the quality of the product or service. This is contrasted to "skilled activities," about which a customer may not feel empowered to question quality. A guarantee of service would have more appeal in the second case than in the first.

The author's reason for bringing up what customers understand about a restaurant's product is not to contrast lower-priced and higher-priced restaurants. Rather, the author is making a broader suggestion about how customers behave when considering different types of products and skills. That's why we have good reason to believe the author would agree with choice (C).

I hope that helps!

Hello GMATNinja
Thank you for the answer brief. However, I still find it hard to understand what the author means when he says: they are empowered to question its quality.

Doesn't he mean that if a person knows the service, s/he questions (Doubts) the quality?
Even though it wouldn't make sense for people to doubt the quality if they are certain of the service quality but still as I was reading I understood this meaning.
Show more
Let's take a close look at the line you mentioned:

Quote:
Moreover, since customers understand a restaurant’s product and know what to anticipate in terms of service, they are empowered to question its quality.
Show more
If someone is "empowered to question" something's quality, this tells us they have the power to question its quality. In other words, they are able to question its quality.

So why would customers be "empowered" to question a restaurant's quality? According to the author, it's because they "UNDERSTAND a restaurant's product and know what to anticipate in terms of service." In short, since customers understand basically how a restaurant works, they can judge the quality of its service.

According to the author, all of this is "not generally true in the case of skilled activities such as electrical work." Because for things like electrical work, customers probably do not "know what to anticipate in terms of service." Put another way -- at restaurants, people know what good service looks like, so they can judge its quality. For more skilled things like electrical work, customers are less knowledgeable, so they're less able to judge the quality of service.

But why is the author discussing all this? What conclusion does s/he draw? Notice this discussion ends with the statement that in cases like electrical work, "a guarantee might have greater customer appeal." This is in contrast to restaurants, where a service guarantee "could actually have a negative effect."

Let's take another look at (C):

Quote:
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
Show more
Recall the author's conclusion from the preceding discussion -- in situations where customers "know what to anticipate in terms of service" (such as restaurants), service guarantees could have a negative affect. But in situations like electrical work, where they don't know what to anticipate, "a guarantee might have greater customer appeal."

This conclusion lines up nicely with the idea that "guarantees are likely to have less appeal" when "customers are knowledgeable about a business’s product or service." Since we can infer the author would agree with (C), it's correct.

I hope that helps!
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In their study of whether offering a guarantee of service quality will 03 Dec 2022, 04:10
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GMATNinja Can you please explain Q1. Confused between B and C.
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In their study of whether offering a guarantee of service quality will 15 Dec 2022, 16:48
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Question 1


TBT
GMATNinja Can you please explain Q1. Confused between B and C.
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Let's start by nailing down the purpose of each paragraph.

  • Paragraph 1 (lines 1-19): To present Tucci and Talaga's findings on the mixed effects of service-quality guarantees on attracting customers (i.e. they can be effective in certain circumstances, and counterproductive in others).
  • Paragraph 2 (lines 20-29): To propose alternative uses of service-quality guarantees (i.e. to motivate employees).

Let's now take a look at answer choice (C):

Quote:
The primary purpose of the passage is to

C. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry
Show more
What is the conventional wisdom regarding the effect of service-quality guarantees? Notice the passage never tells us. We're told some of Tucci and Talaga's findings on the question, but we are never told what is considered "conventional wisdom."

So, since we have not idea what the "conventional wisdom" might be, we can eliminate (C).

Let's take a look at (B):

Quote:
B. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
Show more
In discussing the results of Tucci and Talaga, the author gives us some idea of the advantages and disadvantages of service guarantees for attracting customers. More specifically, we learn that they are helpful for higher-priced restaurants, but might be counterproductive for lower-priced restaurants.

In the next paragraph, the author presents a different way that a service guarantee might be advantageous - it could motivate workers.

Considering both of these paragraphs, we see that the author is primarily concerned with discussing the possible effects of service quality guarantees, and when they might be helpful vs. hurtful (i.e. their advantages and disadvantages). For that reason, (B) is correct.

I hope that helps!
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In their study of whether offering a guarantee of service quality will 08 Jan 2023, 01:34
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Hi Experts,

GMATNinja KarishmaB

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?

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.

Why E is incorrect? I think that "high level of service" is expected in high priced restaurants, but nowhere in passage mentioned that in high priced restaurants, customer will think that a business is worried about its service. It is mentioned only for low priced restaurants.

Please let me know if this reason is correct.

Thank you for your help!
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In their study of whether offering a guarantee of service quality will 08 Jan 2023, 22:12
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Sneha2021
Hi Experts,

GMATNinja KarishmaB

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?

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.

Why E is incorrect? I think that "high level of service" is expected in high priced restaurants, but nowhere in passage mentioned that in high priced restaurants, customer will think that a business is worried about its service. It is mentioned only for low priced restaurants.

Please let me know if this reason is correct.

Thank you for your help!
Show more

Question 2.

(Book Question: 413)
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.

For
(5)
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,
(10)
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
(15)
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.

The passage says that for higher priced restaurants, customers may prefer a service guarantee because of the financial commitment it involves. But for lower priced restaurant, a service guarantee may signal that the service of the place is questionable. Hence (D) and (E) both are incorrect.

D. In situations where a high level of financial commitment is involved, a service guarantee is not likely to be very appealing.

In situations where a high level of financial commitment is involved, a service guarantee is more 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.

In situations where customers expect a high level of customer service (high end restaurants), a service guarantee is more appealing. Customers worry about service at cheaper restaurants only.

The passage also says that since customers understand restaurants, the service guarantee doesn't add a lot of value. It adds more value when customers do not understand the work e.g. skilled activities such as electrical work. Then having a guarantee is re-assures them of the work done.
Hence (C) is correct.
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In their study of whether offering a guarantee of service quality will 08 Aug 2024, 09:36
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MartyMurray GMATNinja Can you please explain question 1? I was confused between option B and option E.
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In their study of whether offering a guarantee of service quality will 16 Aug 2024, 15:14
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MartyMurray GMATNinja Can you please explain question 1? I was confused between option B and option E.
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­(E) is tempting because the second paragraph does indeed consider the effect that service-quality guarantees can have on the service provided by a restaurant.

But remember that we're looking for the primary purpose of the passage, not the just the second paragraph. The advantages and disadvantages explored in the first paragraph have nothing to do with how the level (or quality) of service can be impacted by a service-quality guarantee. Instead, the first paragraph explores how such guarantees can affect customer selection (whether or not the customer goes to the restaurant) and customer expectations.

Yes, the passage does discuss the impact that service-quality guarantees can have on the service provided by a restaurant, but that's part of a broader discussion of the advantages and disadvantages of service-quality guarantees. Most of the advantages (and disadvantages) discussed relate to the effect on customer perception, not on the actual service provided.

So (B) is a better choice.
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In their study of whether offering a guarantee of service quality will 27 Aug 2024, 13:50
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Quote:

Quote:

Quote:
Hello GMATNinja
Thank you for the answer brief. However, I still find it hard to understand what the author means when he says: they are empowered to question its quality.

Doesn't he mean that if a person knows the service, s/he questions (Doubts) the quality?
Even though it wouldn't make sense for people to doubt the quality if they are certain of the service quality but still as I was reading I understood this meaning.
Let's take a close look at the line you mentioned:
Quote:
Moreover, since customers understand a restaurant’s product and know what to anticipate in terms of service, they are empowered to question its quality.
If someone is "empowered to question" something's quality, this tells us they have the power to question its quality. In other words, they are able to question its quality.

So why would customers be "empowered" to question a restaurant's quality? According to the author, it's because they "UNDERSTAND a restaurant's product and know what to anticipate in terms of service." In short, since customers understand basically how a restaurant works, they can judge the quality of its service.

According to the author, all of this is "not generally true in the case of skilled activities such as electrical work." Because for things like electrical work, customers probably do not "know what to anticipate in terms of service." Put another way -- at restaurants, people know what good service looks like, so they can judge its quality. For more skilled things like electrical work, customers are less knowledgeable, so they're less able to judge the quality of service.

By why is the author discussing all this? What conclusion does s/he draw? Notice this discussion ends with the statement that in cases like electrical work, "a guarantee might have greater customer appeal." This is in contrast to restaurants, where a service guarantee "could actually have a negative effect."

Let's take another look at (C):
Quote:
C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
Recall the author's conclusion from the preceding discussion -- in situations where customers "know what to anticipate in terms of service" (such as restaurants), service guarantees could have a negative affect. But in situations like electrical work, where they don't know what to anticipate, "a guarantee might have greater customer appeal."

This conclusion lines up nicely with the idea that "guarantees are likely to have less appeal" when "customers are knowledgeable about a business’s product or service." Since we can infer the author would agree with (C), it's correct.

I hope that helps!
Show more
­GMATNinja

As you rightly mentioned the lines where one could find the clues to answer this question 2,
In situations where customers "know what to anticipate in terms of service" (such as restaurants), service guarantees could have a negative affect. But in situations like electrical work, where they don't know what to anticipate, "a guarantee might have greater customer appeal."

Lines relevant from the passage: "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"

"This" here refers to the scenario where customers understand product and know what to anticipate in terms of service i.e about electric equipment and anticipates a good quality of service from electrician. It suggests that guarantee has greater customer appeal in this case

Lets see what Option c says:
Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.

While this could be the best choice available, but it does not look like a convincing argument especially when the question is generic in nature. Had it confined to restaurant industry, this would have been no brainer

Could you please provide your expert comments?­
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In their study of whether offering a guarantee of service quality will 26 Sep 2024, 14:16
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As you rightly mentioned the lines where one could find the clues to answer this question 2,

In situations where customers "know what to anticipate in terms of service" (such as restaurants), service guarantees could have a negative affect. But in situations like electrical work, where they don't know what to anticipate, "a guarantee might have greater customer appeal."

Lines relevant from the passage: "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"

"This" here refers to the scenario where customers understand product and know what to anticipate in terms of service i.e about electric equipment and anticipates a good quality of service from electrician. It suggests that guarantee has greater customer appeal in this case

Lets see what Option c says:

Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.

While this could be the best choice available, but it does not look like a convincing argument especially when the question is generic in nature. Had it confined to restaurant industry, this would have been no brainer

Could you please provide your expert comments?­
Show more
I'm not quite sure that I'm interpreting your question correctly, but the issue might lie with this portion of your analysis:

Quote:
"This" here refers to the scenario where customers understand product and know what to anticipate in terms of service i.e about electric equipment and anticipates a good quality of service from electrician. It suggests that guarantee has greater customer appeal in this case
Show more
You're correct to say that "this" refers to a situation where the customers DO understand the product, KNOW what to anticipate in terms of service, and thus ARE empowered to question its quality.

But electrical work is NOT an example of such a situation. Electrical work is an example of a situation where "this" is NOT generally true. In other words, electrical work is a an example of a situation where customers generally do NOT understand the product, do NOT know what to anticipate in terms of service, and thus are NOT empowered to question the quality.

In such situations (e.g. electrical work), service guarantees might have greater customer appeal. But when customers ARE knowledgeable (e.g. restaurants), service guarantees are likely to have less appeal. So (C) works perfectly.

For anyone who missed it, a full breakdown of Question 2 can be found here: https://gmatclub.com/forum/in-their-study-of-whether-offering-a-guarantee-of-service-quality-will-242450-20.html#p2923129.
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In their study of whether offering a guarantee of service quality will 11 Jun 2026, 04:06
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[*]1
[*]B is the Winner: It perfectly captures the neutral, bird's-eye view of the entire text. Paragraph 1 covers advantages (high-priced) and disadvantages (low-priced) for customers, while Paragraph 2 highlights operational advantages for staff.
[*]A falls into the Tone/Attitude Trap: The author completely agrees with and explains the logic behind Tucci and Talaga's study; at no point does the author "question" or challenge the results.
[*]C falls into the "New Concept" / Out of Scope Trap: "Conventional wisdom" means a long-held, traditional belief of society. The passage isn't debunking an old industry myth; it is evaluating a modern academic study.
[*]D falls into the Extreme Language Trap: Watch out for the word "only." This choice is directly contradicted by the opening line of Paragraph 2 ("For restaurants generally..."), which proves every restaurant can find an internal operational benefit.
[*]E falls into the "Too Narrow" Trap: This choice completely ignores Paragraph 1, which focuses on customer selection and marketing appeal rather than just the actual execution of service.


[*]2,
[*]C is the Winner: The passage sets up an inverse relationship between customer knowledge and guarantee appeal. Because restaurant customers are highly knowledgeable about dining, they use that knowledge to question quality, meaning the guarantee has less appeal to them than to clueless customers in a field like electrical work.


[*]A falls into the Faulty Comparison Trap: An unsubstantiated comparison that gets the facts inverted. The passage implies guarantees have greater appeal in other businesses (like electrical work) than in restaurants.
[*]B falls into the Opposite Trap: If customers know what to anticipate, they become skeptical and use the opportunity to question quality, which makes the guarantee less inherently appealing.
[*]D falls into the Opposite Trap: The passage explicitly connects high financial commitment (expensive restaurants) with an increase in customer selection, meaning it makes the guarantee more appealing, not less.
[*]E falls into the "Mix-Up" / Disconnected Attribute Trap: This deviously pairs a feature of expensive places ("high level of customer service") with a psychological reaction that belongs exclusively to lower-priced restaurants ("thinking the business is worried").

3.
[*]C is the Winner: A textbook perfect paraphrase of the lines in the passage. The text says a customer might think the restaurant is "worried about its service," which seamlessly matches "not confident about the quality of its service."


[*]A and B fall into the "Stretch" (Out of Scope) Trap: These options invent highly specific emotional variables out of thin air. The passage never mentions customers developing "unreasonably high expectations" or having "fears about guarantees not being honored."
[*]D and E fall into the Perspective Shift (POV Mix-Up) Trap: This is the deadliest trap category on this question. The text focuses entirely on customer psychology (what potential customers might think). Choices D and E flip the script completely by changing the point of view to the restaurant becoming anxious or concerned.
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