GMAT Critical Reasoning

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Source: PREP

Level: 2

After its customers complained about being pressured to buy unneeded insurance, an insurance agency stopped rewarding its agents for high sales volume and instead gave them bonuses for high levels of customer satisfaction. Under this new plan, both customer satisfaction and the insurance agency's sales increased.

Each of the following, if true, helps to explain how the change in incentives for agents could have resulted in increased sales EXCEPT:

  • A Customers were so pleased that the insurance agency had responded to their complaints that they recommended the agency to their friends.
  • B Agents listened more closely to customers of long standing and were able to sell them additional insurance policies that met new needs.
  • C Agents more frequently postponed completing the attendant paperwork even after the terms for an insurance policy were settled to the satisfaction of the client.
  • D Dissatisfied customers of other agencies, attracted by the reports of the change in agency policy, became customers of the agency.
  • E Having come to trust the increased judiciousness of the agents' recommendations, customers approached the agency to discuss and ultimately to buy more supplementary insurance than they previously had bought under pressure.

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