In their Study of Whether Offering a Guarantee of Service

Reading Passage Question

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 (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.

(20) 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 (25) 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.

“In their study of whether offering a guarantee of service” - is a GMAT reading comprehension passage with answers. Candidates need a strong knowledge of English GMAT reading comprehension.
This GMAT Reading Comprehension consists of 2 comprehension questions. The GMAT Reading Comprehension questions are designed for the purpose of testing candidates’ abilities in understanding, analyzing, and applying information or concepts. Candidates can actively prepare with the help of GMAT Reading Comprehension Practice Questions.

Solution and Explanation

1. The primary purpose of the passage is to

1. question the results of a study that examined the effect of service-quality guarantees in the restaurant industry
2. discuss potential advantages and disadvantages of service-quality guarantees in the restaurant industry
3. examine the conventional wisdom regarding the effect of service-quality guarantees in the restaurant industry
4. argue that only certain restaurants would benefit from the implementation of service-quality guarantees
5. 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?

1. Such guarantees are likely to be somewhat more appealing to customers of restaurants than to customers of other businesses.
2. Such guarantees are likely to be more appealing to customers who know what to anticipate in terms of service.
3. Such guarantees are likely to have less appeal in situations where customers are knowledgeable about a business’s product or service.
4. In situations where a high level of financial commitment is involved, a service guarantee is not likely to be very appealing.
5. 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?

1. Customers’ developing unreasonably high expectations regarding service
2. Customers’ avoiding such restaurants because they fear that the service guarantee may not be fully honored
3. Customers’ interpreting the service guarantee as a sign that management is not confident about the quality of its service
4. A restaurant’s becoming concerned that its service will not be assiduous enough to satisfy customers
5. A restaurant’s becoming concerned that customers will be more emboldened to question the quality of the service they receive

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