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  3. The fact that superior service can generate a competitive advantage for a compan

The fact that superior service can generate a competitive advantage for a compan

游客2025-02-25  28
问题 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. [br] According to the passage, investments in service are comparable to investments in production and distribution in terms of the
选项 A、tangibility of the benefits that they tend to confer
B、increased revenues that they ultimately produce
C、basis on which they need to be weighed
D、insufficient analysis that managers devote to them
E、degree of competitive advantage that they are likely to provide
答案 C
解析 Supporting ideas
The phrase according to the passage indicates that the question covers material that is explicitly stated in the passage. The answer to this question demands a careful reading of the second sentence (lines 4-8). Investments in service are like investments in production and distribution because they must be balanced against other types of investments on the basis of direct, tangible benefits.
Thus, these investments should be weighed on the same basis.
A The author is not equating the tangible benefits the different kinds of investments reap but rather the basis on which decisions to make investments are made.
B Revenues generated from investing in service are not said to be comparable to revenues generated from investing in production and distribution.
C Correct. An evaluation of whether or not to make these investments must be made on the same basis.
D How managers analyze investments in production and distribution is not discussed.
E The competitive advantage of superior service is acknowledged, but not the degree of it; it is not mentioned at all in the context of production and distribution.
The correct answer is C.
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