When a service is rated high in terms of importance but low in terms of performance, this indicates that ______.

A) there is an opportunity for reallocating resources
B) service improvements are required
C) customers' expectations should be lowered
D) resources are allocated appropriately

When a service is rated high in terms of importance but low in terms of performance, it indicates that there is a gap between customers' expectations and the actual service delivery. Therefore, service improvements are required to bridge this gap and meet customers' expectations. Reallocation of resources may be necessary, but this is not the only solution. Lowering customers' expectations is not a viable option, as it can lead to dissatisfaction and loss of business. Therefore, the best choice is B.