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The fact that superior service can generate a Questions 50-55 refer to the passage above. competitive advantage for a company does not mean that every attempt at improving service will 50. The primary purpose of the passage is to create such anadvantage. Investments in service, (5) like those in production and distribution, must be (A) contrast possible outcomes of a type of balanced against other types of investments on the business investment basis of direct, tangible benefits such as cost (8) suggest morecareful evaluation of a type of reduction and increased revenues. If a company is business investment already effectively on a par with its competitors (C) illustrate various ways inwhich a type of (10) because it provides service that avoids a damaging business investment could fail to enhance reputation and keeps customers from leaving at an revenues unacceptable rate, theninvestment in higher (D) trace the general problems of a company to a service levelsmaybewasted, since service is a certain type of business investment deciding factor for customers only in extreme (15) (E) criticize the way inwhichmanagers tend to situations. This truth was not apparent to managers of one ana lyze the costs and benefits of business regional bank, which failed to improve its investments competitive position despite its investment in reducingthe time a customer had to wait for a 51. According to the passage, investments in service are (20) teller. The bank managers did not recognize the comparable to investments in production and level of customerinertia in the consumer banking distribution in terms of the industry that arises from the inconvenience of (A) tangi bility of the benefits that they tend to confer switching banks. Nor did they analyze their service (8) increased revenues that theyultimately produce improvement to determine whether it would attract (25) new customers by producing a new standard of (C) basis on which they need to beweighed service that would excite customers or by proving (D) insufficient analysis that managers devote to difficult for competitors to copy. The only merit of them the improvement was that it could easily be (E) degree of competitive advantage that theyare described to customers. likely to provide 52. The passage suggests which of the following about service provided by the regiona l bank prior to its investment in enhancing that service? (Al It enabled the bank to retain customers at an acceptable rate. (8) It threatened to weaken the bank's competitive position with respect to other regiona l banks. (C) It had already been improved after having caused damage to the bank's reputation in the past. (D) It was slightly superior to that of the bank's regional competitors. (E) It needed to be improved to attain parity with |
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