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## OG In their study of whether offering a guarantee

AbeNeedsAnswers Master | Next Rank: 500 Posts
Joined
02 Jul 2017
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#### OG In their study of whether offering a guarantee

Sat Aug 19, 2017 1:51 pm
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
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
basis for defining the skills needed for successful
service in areas traditionally regarded as unskilled,
such as waiting tables.

412) 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

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.

414) 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

Q412: B
Q413: C
Q414: C

NandishSS Master | Next Rank: 500 Posts
Joined
05 Jun 2015
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Sun Sep 17, 2017 8:00 pm
Hi Dave/Experts,

Can somebody pls expalin que 2?

412) 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

Here the main idea is an author is discussing potential advantages and disadvantages of service-quality guarantees in the restaurant. So Ans is C

414) 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

If you read line no 10-17 NO WHERE ITS MENTIONED THAT RESTAURANT'S BECOMING CONCERNED so eliminate D & E. Customers is worried about the quality of its service so C

Didn't get que no 2...

### GMAT/MBA Expert

ErikaPrepScholar Legendary Member
Joined
20 Jul 2017
Posted:
503 messages
Followed by:
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GMAT Score:
770
Tue Sep 19, 2017 11:03 am
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. Opposite. We can scan the passage for the word "appeal" to see that the passages states at the end of the first paragraph: "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 other words, guarantees may appeal more to customers of other businesses than to customers of restaurants.

B. Such guarantees are likely to be more appealing to customers who know what to anticipate in terms of service. Opposite. Scanning the passage for the word "anticipate" leads us to the same lines as A, which tell us that when customers do not know what to anticipate, they are less likely to question the quality of the service and more likely to find guarantees appealing.

C. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service. Correct! This is the opposite of what B tells us: when customers know what to anticipate, they are more likely to question the quality, and "consequently" less likely to find guarantees appealing.

D. In situations where a high level of financial commitment is involved, a service guarantee is not likely to be very appealing. Extreme. Extreme language like "all", "none", or "very" should set off alarm bells. Scanning for "financial commitment", we see that "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." This is a pretty moderate statement: we don't know that it is "very" appealing - there is "some" evidence that it is kind of 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. Opposite. Scanning for "worried about its service", we see "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." So this is true of a situation where customers expect a lower quality of service, not a high level of customer service.

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