Hi All,
The below is the pessage from OG-10.
Here can someone please tell how the correct answer for the below question is B and not A ? I am really confused by the language of OG for the option B....it says low value ...doesn't it indicate the cost factor....shouldn't it be low return for it to be appropriate ?
=============================================
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,
(5) 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
291
avoids a damaging reputation and keeps customers from
(10) 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
(15) 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
(20) 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. The author uses the word “only” in line 23 most likely in order to
(A) highlight the oddity of the service improvement
(B) emphasize the relatively low value of the investment in service improvement
(C) distinguish the primary attribute of the service improvement from secondary attributes
(D) single out a certain merit of the service improvement from other merits
(E) point out the limited duration of the actual service improvement
OA = B
Thanks
Mohit
The below is the pessage from OG-10.
Here can someone please tell how the correct answer for the below question is B and not A ? I am really confused by the language of OG for the option B....it says low value ...doesn't it indicate the cost factor....shouldn't it be low return for it to be appropriate ?
=============================================
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,
(5) 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
291
avoids a damaging reputation and keeps customers from
(10) 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
(15) 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
(20) 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. The author uses the word “only” in line 23 most likely in order to
(A) highlight the oddity of the service improvement
(B) emphasize the relatively low value of the investment in service improvement
(C) distinguish the primary attribute of the service improvement from secondary attributes
(D) single out a certain merit of the service improvement from other merits
(E) point out the limited duration of the actual service improvement
OA = B
Thanks
Mohit
