Reading Comprehension

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. Investments 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. 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, then investment in higher service levels may be wasted, since service is a deciding factor for customers only in extreme situations.

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. The bank managers did not recognize the level of customer inertia in the consumer banking industry that arises from the inconvenience of switching banks. 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. The only merit of the improvement was that it could easily be described to customers.

1) Can we discuss what could the primary purpose of the passage in abstract terms!

2) The passage suggests that bank managers failed to consider whether or not the service improvement mentioned in BOLD line

(A) was too complicated to be easily described to prospective customers
(B) made a measurable change in the experiences of customers in the bank's offices
(C) could be sustained if the number of customers increased significantly
(D) was an innovation that competing banks could have imitated
(E) was adequate to bring the bank's general level of service to a level that was comparable with that of its competitors

[spoiler]Why D? Why not B?[/spoiler]

Well this is a common GMAT RC Structure. The author presents an idea with a view point and then supports it with an example or illustrations. The examples or illustrations used are additional premise and add no values to the main point or theme of the passage. In any good writing, the author will not present an example without any background. Consider this two examples:

India's per capita income over the last 10 years has increased by 13%. But things are not always as what seems to be. According to latest survey, till date 35% of the people in India is under poverty.

So why the data is given - to bolster the fact "but things are not always as what seems to be".

You can also start a passage with an example as this :

According to latest survey, till date 35% of the people in India is under poverty. But things are improving. .......

But in both the cases - this will add no values in the main point.

So here is the structure of the passage :

para 1: author's idea
para 2 : Application of author's idea by an example.

main point : superior service do not always generate competitive advantage over its competitor.... why ??

Structure : author present his idea about...... and supports it with an example

Question no . 2 -- suggest is inference, both act is a same way !!

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.

What is the "truth" - the concept is from the first para.

D - could have imitated by its competitor but it wasn't imitated, why ? -- the reason is already presented in the first para.
The manager is used by the author as a example of failure in its motives, so could have imitated is apt !!

In B : "Measurable change in the experience" seems suspicious to me - refer the last line of the passage : The only merit of the improvement was that it could easily be described to customers.

customer are not even aware of this changes at all - it must be described to the customer.

So I hope, you understand why its D and not B !!


I think, I have answered all your question !!

avik.ch wrote:I think, I have answered all your question !!

Yes indeed. Thanks. That's very helpful.

Hi,

I am not sure i understand. Why does the statement " The only merit of the improvement was that it could be easily be described to customers" negate option B.

Thanks,
Jaideep